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.