In late June, the Iowa legislature passed SF 533- an appropriation bill with important tax provisions for Iowa returns:
1. Expands the earned income credit for Iowa
2. Includes retroactive coupling (with the federal provision) for the 2008 tax year for the tuition and fees deduction, educator expense deduction and casualty losses associated with certain disasters.
*The retroactive nature requires amended returns for 2008. No interest will be paid on any refunds related to these amended returns.
3. Includes retroactive coupling (with the federal provision) for the 2010 tax year for tuition and fees deduction, educator expense deduction and Section 179 expensing.
Source: ISU Center for Agricultural Law and Taxation website on July 28, 2011
