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What Iowans need to know about filing their taxes
Fewer brackets, lower max rates in store for state taxpayers
Apr. 12, 2024 6:00 am, Updated: Apr. 15, 2024 9:45 am
DES MOINES — The deadline for Iowans to file their state income tax returns is rapidly approaching, and the state has made significant tax law changes for tax year 2023.
The Gazette asked Mary Mosiman, director of the Iowa Department of Revenue, what Iowans need to know as they scramble to file their taxes, or check on their refund.
Q: When is Iowa’s deadline for filing state income taxes?
A: April 30, 2024.
Q: What are the penalties for not filing on time?
A: If you do not file your return by the due date and you paid less than 90 percent of the correct tax, you owe an additional 5 percent late filing penalty on the unpaid tax. Taxpayers may also be subject to a 5 percent late payment penalty.
Q: What if I need more time? Can I ask for an extension?
A: The department does not have an extension form to obtain additional time to file. A federal extension does not apply for Iowa purposes.
If at least 90 percent of your total tax liability is paid by April 30, 2024, you will automatically have an additional six months to file your return. You have until Oct. 31, 2024, to file your return timely.
Q: If you still haven’t filed, what are your options? What’s the best/quickest ways to file?
A: Start at tax.iowa.gov and look for the “I need to” tab. Find “I need to file my taxes” on the drop-down menu. There are several options available.
Q: How many returns has the state process thus far, and how does that compare with previous years?
A: 1,102,052 — 2023 returns processed year-to-date, compared to 1,096,215 on the same date in the prior year.
Q: How is the state doing in getting refunds out?
A: Our goal is to process refunds in 30 days. We are currently processing them in 24 days.
Q: How can someone track their state refund?
A: Go to tax.iowa.gov and look for the “Where’s My Refund” button. Enter some information and you will see the status of your refund.
Q: What are some of the notable changes in the tax system this year, and when that will take effect?
A: The state of Iowa has made significant tax law changes for tax year 2023. The starting point for taxation on your Iowa return is now federal taxable income.
Additionally:
- Iowa will no longer have its own standard or itemized deductions. Iowa incorporates the federal standard or itemized deduction instead.
- All taxpayers must now use the same filing status on their Iowa return as their federal return.
- Married taxpayers no longer have the option to file separately on a combined return.
- The number of tax brackets has decreased, accompanied by reduced rates.
- Iowa’s maximum individual income tax rate in 2022 was 8.53 percent and in 2023 is 6 percent. This reduction is part of a phased plan, with Iowa aiming for a single tax rate of 3.9 percent by 2026.
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