The Department of Revenue has posted a tentative summary of how the provisions of the stimulus package will affect Iowa taxpayers. The summary is tentative, as the legislature still hasn't passed the bills that address this. Short version:
- Stimulus payments will be exempt from Iowa income taxes, and
- Iowa probably won't conform to federal depreciation and Sec. 179 changes.
That means Iowa taxpayers can look forward to years of notices asking why Iowa and federal income are different, because Iowa's legislators are more concerned about Microsoft than the businesses that have always been here. Oh, and because the Department of Revenue can't be bothered to design a form that reconciles federal and Iowa taxes, so they issue annoying notices asking taxpayers do do their own reconciliations later.
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
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