Relating to the exclusion of certain unemployment compensation from the individual income tax, and including effective date and retroactive applicability provisions

Where it is now

1. ✓
   Done: IntroducedFebruary 9, 2021
2. ✕
   Stopped: SubcommitteeDied when the General Assembly ended
3. Next: House committee
4. Next: Passes the House
5. Next: Senate committee
6. Next: Passes the Senate
7. Next: To the Governor
8. 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 certain unemployment compensation from the individual income tax. Under the bill, the first $10,200 of state or federal unemployment compensation, including pandemic-related unemployment compensation, shall be excluded from the calculation of a taxpayer’s Iowa net income for purposes of the state individual income tax. The bill takes effect upon enactment and applies retroactively to January 1, 2020, for tax years beginning on or after that date but before January 1, 2021.

Full bill text¹

Fiscal note

0 million in FY 2022. 2 million in FY 2022. Since TY 2020 tax returns are currently being accepted by the Department of Revenue, the new exemption for TY 2022 will increase the Department’s administrative expenses related to tax forms, instructions, and programming, as well as the processing of amended tax returns.

• Income Tax Exemption, Unemployment · February 18, 2021

Reading a fiscal note²

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