Bills › 89th 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 19, 2021
- Done: SubcommitteeJanuary 20, 2021
- 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 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
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. excluded for tax years beginning in 2021, 2022, 2023, and 2024, is percent, percent, percent, and percent, respectively. For tax years beginning in 2025 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 2025 or later. The bill defines “retirement income” for purposes of the exclusion. The bill applies retroactively to January 1, 2021, for tax years beginning on or after that date.
Senate subcommittee
Named January 20, 2021. It hasn’t reported yet.
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 · 0 against · 4 undecided · Who →
Family tree
Tried before
89th General Assembly
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- SF 40 Providing an exemption from the computation of the individual income tax of certain amount…88th General Assembly · In committee · same titleCleared committee
Similar bills this General Assembly
- SF 195 Relating to the exclusion of retirement income from the computation of the individual inco…89th General Assembly · In committeeVery similar
- SF 37 Relating to the exclusion of retirement income from the computation of the individual inco…89th 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.