Bills › 89th General Assembly
Exempting all retirement income from the individual income tax including retroactive applicability provisions
Where it is now
- Done: IntroducedJanuary 13, 2022
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, 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 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
The bill exempts all retirement income from 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 2022 or later. The bill defines “retirement income” for purposes of the exclusion. The bill applies retroactively to January 1, 2022, for tax years beginning on or after that date.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text
Fiscal note
The proposed pension and retirement income exemption is projected to reduce General Fund revenue by the amounts listed in the right column of the following table. The General Fund impact continues past FY 2028, increasing each year by the rate of growth in pension and retirement income received by Iowa taxpayers. 2 million each tax year.
- Retirement Income Tax Exemption · January 31, 2022
Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note
Iowa Code it changes
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
8 for · 3 against · 7 undecided · Who →