The state of Iowa has made the following tax law changes for tax year 2022:
For tax years beginning January 1, 2020, the state will automatically conform to any changes made to the Internal Revenue Code (IRC), except when specified by Iowa law.
- Qualified Business Income Deduction (QBID): This deduction has increased from 50% to 75% of the federal deduction.
- DPAD 199A(g) Deduction: This deduction has increased from 50% to 75% of the federal deduction.
- Charitable mileage rate: Those that itemize their deductions are allowed a rate of 50 cents per mile beginning July 1, 2022 (increased from 39 cents per mile).
- Iowa Composite Credits: These credits reported on IA Schedule CC will not be reported on line 62 of the Iowa 1040.