Iowa’s taxation of married couples has quirks that can throw a taxpayer or tax preparer for a loop. For example, Iowa has 3 different filing statuses a married couple can choose from, and most deduction items are allocated pro rata between spouses who file separately.
Iowa Taxes and Married Filing Separately, Issue 8, 9 & 10: Moving Expenses, Student Loan Interest, Deductions Relating to a Dependent
Iowa’s taxation of married couples has quirks that can throw a taxpayer or tax preparer for a loop. This post will look at allocating moving expenses, student loan interest, and deductions relating to a dependent.
Iowa allows an exclusion of up to $12,000 of pension/retirement account income for taxpayers age 55 and older. When taxpayers file separate tax returns, the $12,000 exclusion might need to be allocated.
Iowa allows a deduction in full for health insurance premiums paid with after-tax dollars. This deductions is available to everyone, even those who don't itemize. Here's how this deduction works for people filing as married filing separately.
Iowa taxes get quirky when married couples file separate tax returns. Today’s post will focus on a couple of filing basics when filing separately, as well as how to account for basic things such as W-2 income.