Below is a list of income that you can subtract from income on your Iowa return:
Payments to an IRA, KEOGH, or SEP (up to $5,500 per year)
Deductible Portion (One-Half) of Self-Employment Tax
Enter the amount from line 27 of your federal 1040 in computing federal adjusted gross income.
Health Insurance Deduction (100% paid with post tax funds)
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. This is located on form 1099-INT, box 2.
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 (up to $6,000; $12,000 for joint filers)
Moving Expense Deduction
Iowa has NOT conformed to the federal repeal of miscellaneous itemized deductions subject to the 2% AGI floor. These deductions are generally still allowed for Iowa purposes in 2018.
Iowa Capital Gain Deduction - for certain business/farm assets ONLY (Line 23)
You must complete and include the applicable IA 100 with your return to claim the Iowa Capital Gain Deduction. Gains on the sale of stocks or bonds do not generally qualify for the capital gain deduction. Capital gains from the sale of investment property do not qualify for the capital gain deduction, even if sold to lineal descendants of the owners of the property. Non-farm rental property may qualify. In addition to the instructions and guidance found in the applicable IA 100, flowcharts to assist in determining if a gain qualifies are found in the Online Expanded Instructions.
For additional information, please see Iowa Capital Gain Deduction.
