State revenue dept.: Changes in effect for some tuition, educator provisions

Senate File 533, enacted on July 27, 2011, made changes affecting Iowa income tax provisions for tax years 2008, 2010 and 2011, notes the Iowa Department of Revenue .

This legislation retroactively coupled with the following federal provisions for 2008:

• Tuition and Fees Deduction
• Educator Expenses Deduction
• Casualty Loss (10% limit; $100 floor)

Taxpayers who are affected by these changes and have already filed returns for tax year 2008 may want to consider filing an amended Iowa tax return.  Amended returns may be filed within three years of the original due date. No interest will be paid on refunds resulting from this legislation.

NOTE:  These changes are allowed only for the 2008 tax year.  These changes are not allowed for the 2009 tax year since Iowa did not couple with tax changes affecting the 2009 tax year.

For 2010 and 2011 individual income tax filers only:

• Taxpayers can make an adjustment on the 2011 tax year return for Iowa's coupling with the federal Tuition & Fees Deduction and Educator Expenses Deduction for 2010. The taxpayer has the option to amend 2010 or adjust 2011.

For 2010 and 2011 individual income tax filers, as well as corporate income tax (including S corporations), partnership, fiduciary and franchise tax:

• Taxpayers can make an adjustment on the 2011 tax year return for Iowa's coupling with the federal Section 179 expensing limit for 2010. The taxpayer has the option to amend 2010 or adjust 2011.