As I mentioned in an earlier edition, the Iowa Legislature passed a significant Iowa tax reform bill which Governor Reynolds signed into law last week.
Most parts of this large bill are not effective until 2019 or later. Three items included in the bill that are effective for tax year 2018 are now the same as federal law:
The above the line deduction for teachers’ education expenses.
Tax-Free IRA distributions to certain public charities for individuals who are seventy and one-half years of age or older.
Expanded definition of qualified education expenses under the 529 education savings plans to include K-12 tuition.
We will continue to review this bill and report more in the coming weeks.
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 advice 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.