Iowa extends deadline for individual income taxes

DES MOINES - Iowans who have not yet filed their 2020 individual state income taxes now will have more time.

The Iowa Department of Revenue announced Monday it has extended the filing and payment deadline to June 1 for 2020 individual returns and first-quarter estimated income tax payments for individuals.

In issuing the order, Director of Revenue Kraig Paulsen said the state's economy is showing good strength and the filing extension is an appropriate step to help Iowans whose lives have been disrupted by the COVID-19 pandemic.

The state's extension comes after the U.S. Treasury also lengthened the time for individuals to file their federal taxes - although those are due May 17, sooner than Iowa's new deadline.

Specifically, Monday's order allows Iowa residents or non-resident individuals required to file Iowa returns an extension for filing the IA 1040 Individual Income Tax Return and supporting forms and schedules, and any associated tax payments, including quarterly estimated income tax payments that would usually be due April 30.

The state's later deadline does not include business filers or other tax types for individuals.

Iowa is among the states that automatically conform to IRS code, so certain unemployment compensation will not be included in Iowa income. Claims for jobless benefits have spiked as businesses shuttered or reduced staffing after the pandemic's onset.

Based on federal legislation, the first $10,200 of unemployment compensation income is excluded from taxation for qualifying individuals.

Some Iowans who already have filed their income taxes were not able to take advantage of that change. So the state Department of Revenue will make those adjustments. People affected by the change will not be required to file an amended return; however, the adjustments may take up to 90 days.

Taxpayers who have not filed yet but who are affected should report their unemployment compensation exclusion amount on Form IA 1040, line 14, using a code of M.

For more information on the order, see the Revenue Department's website at tax.iowa.gov.

The state said Monday it is processing refunds in 28 days, faster than its goal of 30 days. You can check on the status of your refund on the department's website.