Image courtesy of Pixabay.com Iowa allows a tax credit of up to $250 for K-12 school-related expenses such as tuition, textbook purchases, and other school-related fees. The credit is 25% of up to $1,000 of expenses per child, so $250 per child is the maximum credit. Who claims the credit in cases of divorce [...]
Someone asked me recently if a married couple could file separate Iowa tax returns even if one spouse has no income. The answer is yes, but the only reason you'd want to do this would be to keep tax liabilities separate, because the ending tax liability would be the same under any of the filing statuses.
This post will focus on the "low-income exemption" on Iowa tax returns, and how various adjustments to Iowa income play into the exemption calculation.