Iowa allows certain deductions and modifications that are reported under Other Subtractions from Federal Taxable Income. These adjustments may reduce Iowa taxable income if the taxpayer meets the applicable requirements.
Program Entry
Iowa Return → Income → Subtractions From Income → Other Subtractions from Federal Taxable Income
The Following Information Can Be Added
Accrual Method
Adjustments related to taxpayers using the accrual method of accounting.
Claim of Right Deduction
A deduction for certain amounts that were included in income in a prior year and later repaid.
First-Time Homebuyer Savings Account Qualifying Contributions
Qualifying contributions made to an Iowa First-Time Homebuyer Savings Account.
Injured Veterans Program Contributions
Qualifying contributions made to the Injured Veterans Program.
Injured Veterans Program Grants
Qualifying grants received through the Injured Veterans Program.
In-Home Health Care
Qualifying income related to in-home health care services.
Iowa Veterans Trust Fund
Qualifying contributions made to the Iowa Veterans Trust Fund.
Military Exemptions, Not Already Excluded
Military income eligible for an Iowa subtraction that was not otherwise excluded.
Organ Transplant Expenses
Qualified unreimbursed organ transplant expenses.
Partnership/S Corporation Income Modifications
Income modifications passed through from a partnership or S corporation that decrease Iowa taxable income.
Segal AmeriCorps Education Award Payments
Qualifying Segal AmeriCorps Education Award payments.
Victim Compensation Awards
Qualifying victim compensation awards.
Wages Paid to Certain Individuals
Qualifying wages eligible for an Iowa subtraction.
Educator Expenses
Eligible educator expenses not otherwise deducted.
Nonresident Electric Utility Worker
Income eligible for exclusion under Iowa's nonresident electric utility worker provisions.
Rapid Response to State Disasters
Qualifying income related to disaster response activities.
IA ABLE Savings Plan Trust
Qualifying Iowa ABLE account adjustments.
Grant Provided to a Communications Service Provider
Qualifying grants received by a communications service provider.
Education Savings Account Payments Used for Qualifying Expenses
Eligible education savings account distributions used for qualifying expenses.
Student Loan Repayments by Employers
Qualifying employer-paid student loan repayments.
Notes
- Most taxpayers will not qualify for every subtraction listed in this section.
- Additional documentation may be required to support the subtraction claimed.
- Certain subtractions may require additional Iowa forms, schedules, or worksheets.
- Taxpayers should retain records supporting any subtraction reported on the Iowa return.