Iowa filing requirements for military residents are:
- Combined income on a married return is more than $13,500 (not including active duty pay) or $32,000 if you or your spouse are 65 or older on 12/31
- Income is more than $9,000 (not including active duty pay) on a Single return ($24,000 if older than 65 on 12/31
- Income of $5,00 or more (not including active duty pay) and is a dependent on another person's Iowa return
- Income of more than $13,500 (not including active duty pay) on a return where Head of Household or qualifying widow(er) is the filing status. $32,000 if you or your spouse is 65 or older on 12/31
Combat Zone Pay:
Since combat pay is excluded by the federal government, Iowa does not tax the income either.
School District Surtax:
Residents of Iowa are subject to the School District Surtax even if they are not physically present in the state on the last day of the year.
Changing Residency:
To change your residency to another state, you need to complete Form DD 2058, State of Legal Residence Certificate. This form can be obtained from your payroll officer. You will also need a combination of:
- Physical presence in the other state
- Register to vote in other state
- Change driver's License to other state
- Register vehicle in other state
- Apply for privileges in other state
- Payment of real estate tax and/or income tax in other state
Military Student Loan Exemption:
Repayments for a Student Loan made by Military Personnel and included in federal adjusted gross income are exempt from Iowa income tax if the individual is active duty at the time of the loan repayment and is a member of the armed forces, armed forces military reserve or the National Guard.
To claim the deduction in the program:
- State Section
- Resident Iowa Return
- Subtractions from Income
- Student Loan Interest Deduction
- Enter amount
- Save
Forgiveness of Tax:
Tax on Iowa income can be forgiven if:
- the deceased was killed in a combat zone, or
- the taxpayer is missing in action and presumed dead, or
- the deceased was killed outside the United States due to terrorist or military action while he/she was a military or civilian employee of the United States and
- the person's federal income tax was forgiven
If the filing status is:
Single: Iowa income tax forgiven for the year the person was killed (or missing/presumed dead) and tax year prior to death
Married: Iowa income tax forgiven for the year of death and tax year prior to death. On the prior year return, if married filing separate on combined return- only the tax attributable to the deceased is forgiven.
If the income is included on the Iowa return, deduct it by following these steps in the program:
- State Section
- Iowa Resident Return
- Subtractions From Income
- Other Adjustments
- Adjustment Type - Military Exemptions
- Save
Extensions:
The Iowa deadline for tax returns is April 30. If 90% or more of the tax due is paid by that time, the deadline is pushed to October 31st. Extension periods are usually 180 days.
You can qualify for an extension of the filing deadline if:
- you are active duty in the armed forces, armed forces military reserve, or National Guard and deployed outside the US
- You are in the military serving is support of those forces
- A spouse of a person listed above and filing a joint or combined separate return
- An eligible individual who was continuously hospitalized because of illness or injury in the combat zone
You may also qualify for an extension to:
- File claims for refunds for any tax administered by the Department
- Make tax payments other than withholdings
- File appeals on tax matters
- File other tax returns
- Perform other acts described in the Department rules