Text: HF00021 Text: HF00023 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.9, subsection 1, Code 1997, is
1 2 amended to read as follows:
1 3 1. An optional standard deduction, after deduction of
1 4 federal income tax, social security taxes, and railroad
1 5 retirement tax, equal to one thousand two hundred thirty
1 6 dollars for a married person who files separately or a single
1 7 person or equal to three thousand thirty dollars for a husband
1 8 and wife who file a joint return, a surviving spouse, or an
1 9 unmarried head of household. The optional standard deduction
1 10 shall not exceed the amount remaining after deduction of the
1 11 federal income tax, social security taxes, and railroad
1 12 retirement tax. For purposes of this section, "social
1 13 security taxes" means the amount of taxes required to be paid
1 14 by the taxpayer for the tax year under the Federal Insurance
1 15 Contributions Act which consists of the amount paid for old-
1 16 age, survivors, and disability insurance and the amount paid
1 17 for hospital insurance and "railroad retirement tax" means the
1 18 amount of tax required to be paid by the taxpayer for the tax
1 19 year under the federal Railroad Retirement Tax Act.
1 20 Sec. 2. Section 422.9, subsection 2, Code 1997, is amended
1 21 by adding the following new paragraph:
1 22 NEW PARAGRAPH. f. Add the amount of social security taxes
1 23 and railroad retirement tax required to be paid by the
1 24 taxpayer for the tax year.
1 25 Sec. 3. This Act applies retroactively to January 1, 1997,
1 26 for tax years beginning on or after that date.
1 27 EXPLANATION
1 28 The bill allows the deduction under the individual income
1 29 tax for social security (FICA) and railroad retirement taxes
1 30 paid by the taxpayer during the tax year. The deduction would
1 31 be made whether the taxpayer takes the standard deduction or
1 32 itemizes deductions.
1 33 The bill applies retroactively to January 1, 1997, for tax
1 34 years beginning on or after that date.
1 35 LSB 1161HH 77
2 1 mg/sc/14
Text: HF00021 Text: HF00023 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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