Text: SF00235 Text: SF00237 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.9, subsection 1, Code 2001, is
1 2 amended to read as follows:
1 3 1. An optional standard deduction, after deduction of
1 4 federal income tax and the applicable percentage of social
1 5 security taxes, 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 and the applicable portion of social
1 12 security taxes.
1 13 Sec. 2. Section 422.9, subsection 2, Code 2001, is amended
1 14 by adding the following new paragraph:
1 15 NEW PARAGRAPH. g. Add the applicable percentage of social
1 16 security taxes paid by the taxpayer for the tax year.
1 17 Sec. 3. Section 422.9, Code 2001, is amended by adding the
1 18 following new subsection:
1 19 NEW SUBSECTION. 6. For purposes of this section:
1 20 a. "Applicable percentage" means the following:
1 21 (1) For tax years beginning in the 2001 calendar year,
1 22 twenty percent.
1 23 (2) For tax years beginning in the 2002 calendar year,
1 24 forty percent.
1 25 (3) For tax years beginning in the 2003 calendar year,
1 26 sixty percent.
1 27 (4) For tax years beginning in the 2004 calendar year,
1 28 eighty percent.
1 29 (5) For tax years beginning in or after the 2005 calendar
1 30 year, one hundred percent.
1 31 b. "Social security taxes" means the amount of taxes paid
1 32 by the taxpayer for the tax year under the Federal Insurance
1 33 Contributions Act to the extent not otherwise deductible and
1 34 consists of the amount paid for old age, survivors, and
1 35 disability insurance and the amount paid for hospital
2 1 insurance.
2 2 Sec. 4. APPLICABILITY DATE. This Act applies
2 3 retroactively to January 1, 2001, for tax years beginning on
2 4 or after that date.
2 5 EXPLANATION
2 6 This bill allows a deduction under the individual income
2 7 tax for social security (FICA) taxes paid by the taxpayer
2 8 during the tax year. The deduction begins with the 2001 tax
2 9 year at 20 percent and increases 20 percentage points until
2 10 the 2005 tax year when it is totally deducted. The deduction
2 11 is available whether the taxpayer uses the standard deduction
2 12 or itemizes deductions.
2 13 The bill applies retroactively to January 1, 2001, for tax
2 14 years beginning on or after that date.
2 15 LSB 1734XS 79
2 16 mg/cls/14
Text: SF00235 Text: SF00237 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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