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House Journal: Page 1210: Thursday, April 2, 1998

22   shall be reduced to that amount which would result in
23   allowing the taxpayer to retain a net income of
24   thirteen sixteen thousand five eight
hundred seventy-
25   five dollars or nine eleven thousand two
hundred fifty
26   dollars as applicable.  The preceding sentence does
27   not apply to estates or trusts.  For the purpose of
28   this subsection, the entire net income, including any
29   part of the net income not allocated to Iowa, shall be
30   taken into account.  For purposes of this subsection,
31   net income includes all amounts of pensions or other
32   retirement income received from any source which is
33   not taxable under this division as a result of the
34   government pension exclusions in section 422.7, or any
35   other state law.  If the combined net income of a
36   husband and wife exceeds thirteen sixteen thousand
37   five eight hundred seventy-five dollars,
neither of
38   them shall receive the benefit of this subsection, and
39   it is immaterial whether they file a joint return or
40   separate returns.  However, if a husband and wife file
41   separate returns and have a combined net income of
42   thirteen sixteen thousand five eight
hundred seventy-
43   five dollars or less, neither spouse shall receive the
44   benefit of this paragraph, if one spouse has a net
45   operating loss and elects to carry back or carry
46   forward the loss as provided in section 422.9,
47   subsection 3.  A person who is claimed as a dependent
48   by another person as defined in section 422.12 shall
49   not receive the benefit of this subsection if the
50   person claiming the dependent has net income exceeding

Page 2  

 1   thirteen sixteen thousand five eight
hundred seventy-
 2   five dollars or nine eleven thousand two
hundred fifty
 3   dollars as applicable or the person claiming the
 4   dependent and the person's spouse have combined net
 5   income exceeding thirteen sixteen thousand five
eight
 6   hundred seventy-five dollars or nine eleven
thousand
 7   two hundred fifty dollars as applicable.
 8     In addition, if the married persons', filing
 9   jointly or filing separately on a combined return,
10   unmarried head of household's, or surviving spouse's
11   net income exceeds thirteen sixteen thousand
five
12   eight hundred seventy-five dollars, the regular tax
13   imposed under this division shall be the lesser of the
14   maximum state individual income tax rate times the
15   portion of the net income in excess of thirteen
16   sixteen thousand five eight hundred
seventy-five
17   dollars or the regular tax liability computed without
18   regard to this sentence.  Taxpayers electing to file
19   separately shall compute the alternate tax described
20   in this paragraph using the total net income of the
21   husband and wife.  The alternate tax described in this

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URL: /DOCS/GA/77GA/Session.2/HJournal/01200/01210.html
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