Below is a list of income that you can subtract from income on your Iowa return:
Payments to an IRA, KEOGH, or SEP
Taxpayers can subtract up to $6,000 per year.
Deductible Portion (One-Half) of Self-Employment Tax
Enter the amount from Schedule 1, line 15 of your federal 1040 in computing federal adjusted gross income.
Health Insurance Deduction
Taxpayers may subtract 100% of health insurance premiums paid with post tax funds if the individuals taxable income is less than $100,000.
Penalty on Early Withdrawal of Savings
Enter the amount of any penalty you were charged because you withdrew funds from your time savings deposit before its maturity.
Transfers from Iowa 529 Plan to Roth IRA Exemption
Taxpayers who make a qualifying transfer from an Iowa 529 plan to a Roth IRA on or after January 1, 2024 are no longer required to add-back the amount previously deducted
Alimony Paid
Enter the amount of alimony payments or separate maintenance payments that were deductible on your federal tax return.
Pension and Retirement Income Exclusion
For Tax Year 2024: Iowa allows you to exclude all of your retirement income from your state return. Certain qualifications must be met for your filing status.
Iowa Capital Gain Deduction - Cattle, Horses or Breeding Livestock
taxpayers are allowed to exclude gains from qualifying livestock sales in addition to qualifying pre tax year 2023 installments sales. The IA 100A should only be used for installment sales occurring before January 1, 2023 and for sales occurring after January 1, 2023 that are not claimed under the single lifetime election for retired farmers and surviving spouses.
For additional information, please see Iowa Capital Gain Deduction.