Iowa webinar: senior deduction, inheritance tax repeal and other federal changes, what filers need to know

Kurt Connick, Individual Income Tax Policy Director at the Iowa Department of Revenue, told a SourceLink webinar audience that several recent federal law changes will affect Iowa returns — but not always in the same way at the state level. “Nothing should be construed as legal advice,” Connick said, adding that binding guidance requires a petition for a declaratory order.

Connick said Iowa will treat federal changes that alter federal taxable income as the usual starting point for Iowa calculations; items that operate after federal taxable income — like certain credits — may not be adopted by the state. He pointed to the new senior deduction, telling attendees that taxpayers age 65 or older will be able to claim either a $6,000 or $12,000 exemption on their federal return and that Iowa will add a new line on the state 1040 to capture…