The state of Iowa has made the following tax law changes for tax year 2018:
- Taxpayers who are 70 1/2 years or older do not need to include in their Iowa income, any qualified IRA distributions to certain federally tax free charities.
- Certain contributions may be deducted by taxpayers who open a first-time homebuyers savings account. The fund withdrawn from the account must be considered qualifying to receive the deduction.
- Taxpayers can annually withdraw up to $10,000 per beneficiary from a Iowa Advisor 529 Plan or a College Savings Iowa account to pay for tuition expenses for a qualifying K-12 or accredited elementary Iowa school.
Iowa has not conformed to many of the federal tax law adjustments under the Tax Cuts and Jobs Act to view a full list of these non-conformities click here.