You may want to wait to file your tax return.
In the January 19th Tax Tip Tuesday, I indicated that the 2016 tax season was now open. That was correct for federal returns. Unfortunately, as we noted in last week’s edition, some state returns are still in limbo of when they should be filed.
Because the Iowa Legislature has not passed the bill that couples the Iowa tax law with the federal tax code, it might be wise to wait to file for any return that contains any of the items that were part of the federal extenders law passed by Congress back in December. Click here for a list of extender items. Otherwise, it may be necessary to file an amended Iowa return if they do pass the coupling bill.
If there is no tax year 2015 coupling, it would mean most of the changes that are effective for federal tax purposes beginning in tax year 2015 will not be effective for Iowa.
It is very important to reach out to anyone you know in the Iowa Senate and encourage them to support the coupling bill as soon as possible.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.