Budget & Taxes (Income Tax)

introduced · Iowa · Legislature

5515XD: Audits and Examinations, Auditor of State (5515XD) - Auditor of State

This bill amends Iowa law to clarify the Auditor of State's access to confidential information during audits. It allows the Auditor to access certain confidential records (like agency data) while maintaining confidentiality, but explicitly prohibits access to individual income tax returns or health data identifying specific patients. The bill also removes requirements for prior consent before disclosing information in audit reports and repeals outdated dispute-resolution rules for conflicts between state agencies. These changes streamline audit processes while preserving specific privacy protections for sensitive personal data.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies Auditor's access to agency data for fiscal oversight, promoting transparency in government spending and fiscal management per topic description.85% confidence

Sub-Topics Audits & Accountability Income Tax

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introduced · Iowa · Legislature

5374XD: Governmental Subdivision Audits, Income Tax Exemption (5374XD) - Auditor of State

This bill (5374XD) exempts certified public accountants (CPAs) from Iowa state income tax on fees earned from auditing or examining local governments (like cities, counties, or school districts). It amends Iowa tax codes 422.7 (individual tax) and 422.35 (corporate tax) to exclude such income from taxable earnings. The exemption applies retroactively to tax years beginning on or after January 1, 2026. The bill directly affects CPAs who perform these government audits, removing a tax liability on their fees for this specific service.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts CPAs from income tax on government audit fees, reducing state revenue and creating a targeted tax break for professionals, aligning with 'creates tax breaks primarily for wealthy' indicator.90% confidence

Sub-Topics Audits & Accountability Business Taxes Income Tax

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in committee · Iowa · Senate Mar 3, 2025

SF 59: A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.

SF 59 expands Iowa's farm tenancy net income exclusion for individual income tax by allowing income earned through certain business entities (like partnerships, S corporations, trusts, or disregarded entities) to qualify for the exclusion, just as if received directly by the farmer. This change directly affects farmers who operate through these business structures, enabling them to exclude farm tenancy income from their taxable income under the same conditions as direct recipients. The bill clarifies that income accruing to a grantor trust or disregarded entity is deemed distributed to its sole owner if they have the right to withdraw it. It takes effect immediately upon enactment and applies retroactively to tax years beginning January 1, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands farm income tax exclusion for pass-through entities, reducing taxable income for qualifying farmers per bill's explicit tax relief intent.90% confidence

Sub-Topics Income Tax

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in committee · Iowa · House Mar 13, 2025

HF 94: A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.

HF 94 exempts up to $500,000 of income from nonqualified deferred compensation plans (like certain deferred pay for select employees) from Iowa's individual income tax for eligible individuals. This applies to people who are disabled, at least 55 years old, or surviving spouses of someone who qualified under the same rules. The exemption covers both the principal amount and earnings from these plans, mirroring existing retirement income exclusion rules. The bill applies retroactively to tax years beginning January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts retirement-related income from tax for vulnerable groups (disabled, 55+, survivors), mirroring existing retirement exclusions to provide tax relief consistent with fiscal responsibility policies.85% confidence

Sub-Topics Income Tax

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died · Iowa · House Mar 21, 2025

HF 56: A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.

This Iowa bill (HF 56) expands a tax exclusion for farm tenancy income. It allows farmers who receive net income from farm tenancy agreements through certain business structures - like partnerships, S-corporations, trusts, or disregarded entities - to claim the same exclusion currently available only to those receiving income directly. The key change treats income from these entities as if received directly by the farmer, provided the farmer has the right to withdraw it. The exclusion applies retroactively to tax years starting January 1, 2024, directly affecting farmers operating through such business entities.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exclusion for farm income, reducing taxable income for farmers through broader eligibility for existing tax relief.90% confidence

Sub-Topics Income Tax

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died · Iowa · House Apr 9, 2026

HF 601: A bill for an act relating to fees for wire transmissions, and related income tax credits.

HF 601 requires money transfer businesses (licensees) to collect a $5 fee for each wire transfer of $500 or less, plus 2% of any amount over $500. The collected fees must be sent quarterly to Iowa's Department of Revenue, which then forwards all funds to the Office to Combat Human Trafficking. Customers who file individual income tax returns with a valid Social Security or tax ID number can claim a tax credit equal to the fees they paid during the year. Money transfer businesses must post notices informing customers about this tax credit opportunity. The bill directly affects money transfer service providers and their customers using wire transfers within Iowa.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill directs transaction fees to fund anti-human trafficking program, creating new revenue stream for public service while offering tax credits to offset individual costs.95% confidence

Sub-Topics Income Tax Tax Credits

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passed · Iowa · House Mar 26, 2025

HF 624: A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.

HF 624 expands Iowa's farm tenancy net income exclusion for individual income tax, allowing farmers who earn income through certain business structures (like partnerships, S-corporations, trusts, or single-owner entities) to claim the exclusion as if they received the income directly. It specifically clarifies that net income distributed from these entities qualifies, provided the farmer has the right to withdraw or compel distribution of that income. The change applies retroactively to tax years beginning January 1, 2024, meaning eligible farmers can adjust prior-year taxes. This directly benefits Iowa farmers operating through business entities rather than personally, aligning their tax treatment with farmers who receive income directly from farm tenancies.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exclusion for farmers, reducing taxable income and providing tax relief under income tax provisions.95% confidence

Sub-Topics Income Tax

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in committee · Iowa · House Apr 17, 2025

HF 268: A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.

House File 268 proposes to exempt cash tips from the individual income tax. It directly affects individuals who receive cash tips and report them to their employers. The bill amends existing tax code to allow taxpayers to subtract the amount of reported cash tips from their taxable income. This change would apply to tax years beginning on or after January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts cash tips from income tax, providing tax relief to service workers (middle/lower income), aligning with tax relief indicators for budget/taxes.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts cash tips from income tax, increasing take-home pay for tipped workers. Directly advances workers' financial compensation under labor & employment policies.95% confidence

Sub-Topics Income Tax

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in committee · Iowa · House Feb 10, 2025

HF 293: A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.

This bill exempts cash tips reported to employers via IRS Form 6053(a) from Iowa's individual income tax. It directly affects workers who receive cash tips (like servers or bartenders) and report them to employers as required by federal law. The key provision allows taxpayers to subtract these reported cash tips from their taxable income when filing state taxes. The exemption applies to tax years beginning on or after January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts cash tips from state income tax for service workers, providing tax relief to lower-income earners by reducing taxable income.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts cash tips from state income tax, increasing net wages for tipped workers like servers, directly supporting wage benefits under Labor & Employment.90% confidence

Sub-Topics Income Tax

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in committee · Iowa · House Mar 5, 2025

HSB 91: A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.

This bill requires Iowa to withhold state income tax on sports wagering winnings whenever federal income tax is withheld (typically for winnings over $600). It treats sports wagering winnings as taxable income, applying to bettors who win above the federal threshold. The law takes effect January 1, 2026, aligning Iowa's tax withholding process with federal gambling tax rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates state tax withholding on sports wagering winnings, expanding taxable income to generate revenue and align with federal tax rules.95% confidence

Sub-Topics Income Tax

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