Text: HF02372 Text: HF02374 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.7, subsection 13, Code Supplement
1 2 2001, is amended to read as follows:
1 3 13. a. Subtract, to the extent included, the amount of
1 4 additional social security benefits taxable under the Internal
1 5 Revenue Code for tax years beginning on or after January 1,
1 6 1994, but before January 1, 2005. The amount of social
1 7 security benefits taxable as provided in section 86 of the
1 8 Internal Revenue Code, as amended up to and including January
1 9 1, 1993, continues to apply for state income tax purposes for
1 10 tax years beginning on or after January 1, 1994, but before
1 11 January 1, 2005.
1 12 b. Subtract, to the extent included after the subtraction
1 13 in paragraph "a", the following:
1 14 (1) For tax years beginning in the 2002 calendar year,
1 15 one-fourth of taxable social security benefits received.
1 16 (2) For tax years beginning in the 2003 calendar year,
1 17 one-half of taxable social security benefits received.
1 18 (3) For tax years beginning in the 2004 calendar year,
1 19 three-fourths of taxable social security benefits received.
1 20 c. Married taxpayers, who file a joint federal income tax
1 21 return and who elect to file separate returns or who elect
1 22 separate filing on a combined return for state income tax
1 23 purposes, shall allocate between the spouses the amount of
1 24 benefits subtracted under paragraphs "a" and "b" from net
1 25 income in the ratio of the social security benefits received
1 26 by each spouse to the total of these benefits received by both
1 27 spouses.
1 28 d. Subtract, to the extent included, the amount of social
1 29 security benefits taxable under section 86 of the Internal
1 30 Revenue Code for tax years beginning on or after January 1,
1 31 2005.
1 32 Sec. 2. APPLICABILITY DATE. This Act applies
1 33 retroactively to January 1, 2002, for tax years beginning on
1 34 or after that date.
1 35 EXPLANATION
2 1 This bill exempts from the state individual income tax all
2 2 social security benefits received by the taxpayer for tax
2 3 years beginning on or after January 1, 2005. Prior to this
2 4 date, the tax on social security benefits is phased out. One-
2 5 fourth is exempt for tax years beginning in the 2002 calendar
2 6 year, one-half is exempt for tax years beginning in the 2003
2 7 calendar year, and three-fourths is exempt for tax years
2 8 beginning in the 2004 calendar year. The bill applies
2 9 retroactively to January 1, 2002, for tax years beginning on
2 10 or after that date.
2 11 LSB 5971YH 79
2 12 mg/cls/14
Text: HF02372 Text: HF02374 Text: HF02300 - HF02399 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: Sat Feb 23 03:35:30 CST 2002
URL: /DOCS/GA/79GA/Legislation/HF/02300/HF02373/020215.html
jhf