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Iowa and extender conformity

February 23, 2009

The Iowa Department of Revenue has issued the following e-mail alert (I can't find a link at the Department web site):

The Department has received numerous inquiries related to what are commonly referred to as the federal “extenders” and whether the federal provisions will be adopted for Iowa tax purposes. The extenders include the deductions on line 24 of the IA 1040 for Educator Expenses and Tuition & Fees; also the itemized deduction on Schedule A for state sales and use tax paid.

The final determination on Iowa’s treatment of these items must be made by the Iowa Legislature. The Department made an assumption when printing the 2008 income tax booklet that Iowa would follow the federal treatment. This assumption was based upon past history. In prior years, Iowa has adopted these federal provisions. However, there is no guarantee this will be the case for the 2008 tax year until the Legislature makes its determination. We hope to have that determination by early to mid-March.

If Iowa returns must be filed in the meantime, the Department advises you to complete those returns based upon the premise we will ultimately couple with these federal provisions; with the understanding that an amended return may be required if that premise turns out to be incorrect.

Seeing that they're working nights and weekends at the legislature, you'd think they'd move faster.

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