Iowa state tax basis is the state adjusted gross income.
Interest/Divident Income: Interest and Divident income from U.S. government bonds are exempt from State Taxes.
Rent Income: Same as federal.
Capital Gain: 100% exclusion for qualifying Capital Gains on business assets.
Unemployment Income: Same as federal.
Social Security Benefits: Up to 50% of benefits are taxable
State Bond Interest: Taxable except certain Iowa obligations
Health Savings Accounts: Same as federal
Disability: Exclusion of up to $100/week if totally and permanently disabled and meet certain conditions.
Lottery: Same as federal.
Federal Income Tax: Deductible.
Other Taxes: Deductions for gains or losses on distressed sale transactions; wages paid to qualifying new employees; amounts claimed for federal work opportunity and alcohol fuel credits; health, dental, and long-term care insurance premiums; in-home health care expenses; organ donor transplant expenses; and contributions to Iowa Education avings Plan Trust. Low-income exemption. *No tax or penalty on distributions from retirement plans by National Guard members or reservists called to active duty.
Check other state tax links below.