November 15, 2013
2013 Taxpayers Trust Fund Income Tax Credit
Des Moines, Iowa – The Iowa Department of Revenue today announced that the amount of the newly enacted Iowa Taxpayers Trust Fund Tax Credit (Credit) for tax year 2013 will be $54.
The individual income tax credit was part of the bill enacting Governor Branstad’s 2013 Commercial Property Tax Reform package, 2013 Iowa Acts Senate File 295. Division V of the bill created the Credit as well as its funding mechanism. For tax year 2013, the Iowa Department of Management has certified that $120 million is available in the Iowa Taxpayers Trust Fund Tax Credit Fund (Fund) to be distributed as income tax credits. Under the new law, the Iowa Department of Revenue divides the amount in the Fund by the number of individuals who filed a timely Iowa Individual Income Tax Return (Return) in the previous tax year. The resultant number is the amount of the Credit for the upcoming tax year. The number of eligible individuals filing timely returns in tax year 2012 was 2.21 million leading to a $54 Credit available for tax year 2013.
In order to claim the Credit, a 2013 Return must be filed by October 31, 2014, which is the extended due date. To avoid penalty, Iowa income tax returns normally must be filed by and 90% of any tax owed must be paid by April 30. The Credit will be applied to the computed Iowa tax after first applying any other refundable and nonrefundable tax credits. Any amount of the Credit that is in excess of the tax due is not refundable and cannot be carried back or carried forward to another tax year.
The $54 Credit amount and additional information will be reflected in the IA 1040 instructions for the 2013 tax year. Forms and instructions will be available on the Department’s website in January. As always, the Department encourages taxpayers to file their income tax returns electronically.
The Department’s legislative summary of the Credit can be found at http://www.iowa.gov/tax/taxlaw/13SF295H.pdf. For general information on Iowa taxes and credits, visit the Department’s website at www.iowa.gov/tax.
For more information contact: