FULL List to Iowa Tax Forms

Individual Tax Forms:

Form IA 1040 Individual Income Tax Form (Long)

Form IA 1040A Individual Income Tax Short Form

Form IA 1040V Iowa Individual Income Tax Payment Voucher

Corporation Tax Forms

Form IA 1120X Iowa Amended Corporation Income Tax Return

Form IA 1120S Iowa Income Tax Return for S Corporations

Form IA 1120 Iowa Corporation Income Tax Return Long Form

Form IA 706 Iowa Inheritance Estate Tax Return

Sales Tax Forms

Form 31014 Sales Tax Exemption Certificate

Form 32022 Return

Form 32024 Consumer Use Tax Return

Form 32022 Retail Use Tax

Form 31-01-4b Iowa Sales Tax Exemption Certificate

Property Tax Forms

Form Real Estate Transfer – Declaration of Value

Form 1154130 Rent Reimbursement Claim

Form 1154001 Iowa Property Tax Credit Claim

If you need legal advice and assistance, contact Iowa lawyers.

Understanding Iowa State Tax System

Like most states in the United States, Iowa relies on sales tax and income tax to fund state programs, infrastructure projects, and salaries for its state government employees. Iowa collects three types of taxes, including sales tax, income tax, and property tax. In this article, we will discuss the Iowa state tax system and provide an overview of its tax codes.

Sales Tax in Iowa

The state of Iowa imposes a 6% sales tax on most retail goods and services. This sales tax rate is the same in all 99 counties, indicating that each local government does not levy additional sales tax rates. Exceptions to this rule include the local option sales tax rate that is charged by cities, towns, or counties within the state, which varies from 0.5% to 1%. While food and prescription drugs, machinery and equipment used in manufacturing, and raw materials used to produce products are exempt from sales tax in Iowa, other services, including daycare, hotel stays, and laundry services are taxable.

In Iowa, sales tax returns are required on a regular basis, with monthly, quarterly, and annual payment options available. Sales tax returns and payments can be submitted electronically via the Iowa Department of Revenue’s Electronic Filing System. Additionally, businesses that collect Iowa sales tax must register with the Iowa Department of Revenue.

Income Tax in Iowa

The Iowa state income tax system is based on a progressive income tax bracket system, which means the tax rate increases with your income. The tax rate ranges from 0.33% to 8.53% based on income level. Below are the current Iowa personal income tax rates.

Taxable Income | Tax Rate

$0 to $1,679 | 0.33%

$1,679 to $3,358 | 0.67%

$3,358 to $6,716 | 2.25%

$6,716 to $15,925 | 4.14%

$15,925 to $21,900 | 5.63%

$21,900 to $32,850 | 5.96%

$32,850 to $49,275 | 6.25%

$49,275 to more | 8.53%

Every year, Iowans are required to file their income taxes by the due date of April 30th. However, if it falls on the weekend or a holiday, taxpayers get extra days depending on the circumstance. All tax returns filed must be accompanied by payment or showing full payment of taxes due to avoid penalties and interest charges.

Property Tax in Iowa

In Iowa, property tax is levied based on the value of the property being taxed. Property tax rates are set by countywide or citywide assessments. Countywide assessments are regulated by the County Board of Review, while city-wide assessment activities are carried out by the city’s Assessor’s Office. Property tax in Iowa is used to support public schools, local law enforcement, public highways, and other public services.

Homeowners in Iowa are eligible for a homestead tax credit on their property taxes provided that they meet specific conditions (including occupying the house as their permanent dwelling and owning no more than one acre of land), and the property is assessed at under $425,000. Here’s how the homestead tax credit works in Iowa.

If your house is worth $100,000, you have a $4,850 exemption on your property’s assessed value. You can use your homestead credit to pay your property taxes, your first-half, or second-half bills.

Moreover, the Iowa government provides a property tax rollback for commercial and industrial property owners when calculating their property tax liability. The property tax rollback reduces the total taxable value of the commercial and industrial property by 100%, which can lead to significant savings on property taxes.

Other Taxes

Iowa also levies a range of other taxes, including use tax, inheritance tax, and excise taxes. Use tax is imposed on goods bought outside of Iowa, but used, processed or consumed in Iowa and is supposed to equal the sales tax rate in Iowa. Inheritance tax is based on the amount of property left by a deceased person to their heirs and the beneficiaries. Iowa’s inheritance tax rate ranges from 0% to 15%, and the inheritance tax does not apply to income. Excise taxes are levied on specific goods and services, such as alcohol, tobacco products, and fuel.

Tax Deductions and Credits

Iowans can take advantage of several tax deductions and credits to reduce their tax liability. An Iowa taxpayer’s deductions are related to charitable contributions, health insurance, child care expenses, and certain retirement contributions. Additionally, Iowa tax credits are available for Iowa taxpayers, including the child and dependent care credit, earned income credit, and the solar energy system tax credit.

Conclusion

In summary, the Iowa State Tax System is one that contains sales tax, income tax, property tax, use tax, inheritance tax, and excise taxes. Understanding how these taxes work and their rates can help individuals and businesses ensure they are paying the right amount of tax and taking advantage of eligible deductions and credits. By keeping up to date with the tax code, submitting tax returns on time, and having a solid understanding of the tax system, taxpayers can avoid penalties and interest charges and maintain good financial standing with the government.