Text: HF02020 Text: HF02022 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.9, subsection 1, Code Supplement
1 2 2001, is amended to read as follows:
1 3 1. a. An optional standard deduction, after deduction of
1 4 federal income tax, self-employment taxes, social security
1 5 taxes, and railroad retirement taxes, equal to one thousand
1 6 two hundred thirty dollars for a married person who files
1 7 separately or a single person or equal to three thousand
1 8 thirty dollars for a husband and wife who file a joint return,
1 9 a surviving spouse, or an unmarried head of household. The
1 10 optional standard deduction shall not exceed the amount
1 11 remaining after deduction of the federal income tax, self-
1 12 employment taxes, social security taxes, and railroad
1 13 retirement taxes. The amount of federal income tax deducted
1 14 shall not exceed the amount as computed under subsection 2,
1 15 paragraph "b".
1 16 b. For purposes of this section:
1 17 (1) "Railroad retirement taxes" means the amount of taxes
1 18 paid or accrued by the taxpayer under the tier 1 tax of the
1 19 federal Railroad Retirement Tax Act, section 3201(a) of the
1 20 Internal Revenue Code.
1 21 (2) "Self-employment taxes" means the amount of taxes paid
1 22 or accrued by the taxpayer under the federal Self-Employment
1 23 Contributions Act of 1954, section 1401 of the Internal
1 24 Revenue Code, adjusted by the amount of credits, refunds, and
1 25 deductions taken for such taxes by the taxpayer for federal
1 26 income tax purposes.
1 27 (3) "Social security taxes" means the amount of taxes paid
1 28 or accrued by the taxpayer under the Federal Insurance
1 29 Contributions Act, section 3101 of the Internal Revenue Code.
1 30 Sec. 2. Section 422.9, subsection 2, paragraph b, Code
1 31 Supplement 2001, is amended by striking the paragraph and
1 32 inserting in lieu thereof the following:
1 33 b. Add the amount of federal income taxes paid or accrued,
1 34 as the case may be, to the extent the federal tax payment is
1 35 for a tax year beginning prior to January 1, 2002. Subtract
2 1 the amount of federal income tax refunds received in a tax
2 2 year to the extent that the federal income tax was deducted on
2 3 an Iowa individual income tax return for a tax year beginning
2 4 prior to January 1, 2002.
2 5 Sec. 3. Section 422.9, subsection 2, Code Supplement 2001,
2 6 is amended by adding the following new paragraph:
2 7 NEW PARAGRAPH. j. Add the amount of self-employment
2 8 taxes, social security taxes, and railroad retirement taxes
2 9 paid or accrued by the taxpayer.
2 10 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies
2 11 retroactively to January 1, 2002, for tax years beginning on
2 12 or after that date.
2 13 EXPLANATION
2 14 This bill eliminates the deduction for federal income taxes
2 15 under the individual income tax, although federal income tax
2 16 paid for any tax year beginning before January 1, 2002, may
2 17 still be deducted. Federal income tax refunds received in a
2 18 tax year will be reported on the Iowa return to the extent the
2 19 tax refund was deducted on a prior Iowa return.
2 20 The bill also provides for a deduction for self-employment,
2 21 social security, and tier 1 railroad retirement taxes paid.
2 22 These taxes are those that are paid by the taxpayer for
2 23 federal old-age, survivors, and disability insurance (OASDI)
2 24 and federal hospital insurance (Medicare).
2 25 The bill applies retroactively to January 1, 2002, for tax
2 26 years beginning on or after that date.
2 27 LSB 5374YH 79
2 28 mg/cls/14
Text: HF02020 Text: HF02022 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2002 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Jan 23 05:50:19 CST 2002
URL: /DOCS/GA/79GA/Legislation/HF/02000/HF02021/020114.html
jhf