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Legislation couples Iowa, federal tax provisions

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Think you’re done with your state income tax returns for another year? Think again.

Legislative changes to the state tax code could make it worthwhile for some taxpayers to file amended returns, according to the Iowa Department of Revenue.

Signed by Gov. Terry Branstad on April 12, Senate File 512 couples Iowa tax provisions with federal tax provisions for several types of deductions and is retroactive to Jan. 1, 2010.

Among the state and federal provisions now coupled are the higher education tuition and fees deduction and the Earned Income Tax Credit. For small businesses, Iowa has adopted the federal increase in the allowance for start-up expenses for tax year 2010, which increased from $5,000 to $10,000, and the increased cap in Section 179 expenses from $134,000 to $500,000.

For a complete list of changes, click here. Taxpayers can also receive assistance by calling (515) 281-3114 or (800) 367-3388.

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