Text: SF02103 Text: SF02105 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.5, subsection 2, Code Supplement
1 2 1999, is amended by striking the subsection and inserting in
1 3 lieu thereof the following:
1 4 2. The tax under this division shall not be imposed on the
1 5 first twenty thousand dollars of net income. However, married
1 6 taxpayers who file separate returns or separately on a
1 7 combined return shall allocate between the spouses the twenty
1 8 thousand dollar exclusion under this subsection in the ratio
1 9 of each spouse's net income to the total combined net income
1 10 of both spouses.
1 11 Sec. 2. Section 422.9, unnumbered paragraph 1, Code
1 12 Supplement 1999, is amended to read as follows:
1 13 In computing taxable income of individuals, there shall be
1 14 deducted from net income, after the deduction of the amount
1 15 specified in section 422.5, subsection 2, the larger of the
1 16 following amounts:
1 17 Sec. 3. APPLICABILITY DATE. This Act applies
1 18 retroactively to January 1, 2000, for tax years beginning on
1 19 or after that date.
1 20 EXPLANATION
1 21 This bill excludes from taxation under the individual
1 22 income tax the first $20,000 of net income. Net income for
1 23 Iowa tax purposes equals the federal adjusted gross income
1 24 adjusted by a number of additions and subtractions. The bill
1 25 provides that $20,000 is then subtracted prior to the taxpayer
1 26 determining whether to take the standard deduction or to
1 27 itemize. Married taxpayers who do not file jointly must
1 28 allocate the $20,000 between them based upon their net
1 29 incomes. The provision that married taxpayers filing jointly
1 30 and all other filers are not subject to tax if their net
1 31 incomes are equal to or less than $13,500 and $9,000,
1 32 respectively, is eliminated.
1 33 The bill applies retroactively to January 1, 2000, for tax
1 34 years beginning on or after that date.
1 35 LSB 5807SS 78
2 1 mg/cf/24
Text: SF02103 Text: SF02105 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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