Bills › 88th General Assembly
Providing an exemption from the computation of the individual income tax of certain amounts of retirement income and including retroactive applicability provisions
Topics:TaxesIncome taxes
Where it is now
- Done: IntroducedJanuary 15, 2019
- Done: SubcommitteeJanuary 17, 2019
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
This bill relates to the exclusion of retirement income from the computation of net income for purposes of the individual income tax. Under current law, a taxpayer may exclude all retirement pay, including certain survivor benefits, received from the federal government for military service performed in the armed forces, the armed forces military reserve, or national guard. In addition, a taxpayer who is disabled, who is at least 55 years of age, or who is the surviving spouse or other specified survivor of that qualifying taxpayer, may exclude a maximum of $6,000 of other retirement income ($12,000 for married couples).
Read the full explanation
7(31) because the bill provides for a complete exclusion of such retirement income. The bill phases in over a five-year period the complete exclusion from the individual income tax of a taxpayer’s retirement income remaining after the two exclusions referenced above. The percentage of this retirement income that is excluded for tax years beginning in 2019, 2020, 2021, and 2022, is 20 percent, 40 percent, 60 percent, and 80 percent, respectively. For tax years beginning in 2023 or later, 100 percent of a taxpayer’s retirement income will be excluded from the individual income tax.5, and further provides that any retirement income excluded from the individual income tax will not be added back to these calculations for tax years beginning in 2023 or later. The bill defines “retirement income” for purposes of the exclusion. The bill applies retroactively to January 1, 2019, for tax years beginning on or after that date.
Senate subcommittee
Named January 17, 2019. It hasn’t reported yet.
- Sen. Jake Chapman R
- Sen. Joe Bolkcom D
- Sen. R. Smith
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Iowa Code it changes
Lobbying
0 for · 1 against · 5 undecided · Who →
Family tree
88th General Assembly
Earlier and later bills are matched by wording or an identical title.
Similar bills
- SF 95 Providing an exemption from the computation of the individual income tax of certain amount…89th General Assembly · In committeeNearly identical
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- SF 308 Relating to the exclusion of retirement income from the computation of the individual inco…88th General Assembly · In committeeVery similar
- HF 2026 Exempting all retirement income from the individual income tax including retroactive appli…89th General Assembly · In committeeSimilar
Matched by wording or an identical title.