Text: SSB03123 Text: SSB03125 Text: SSB03100 - SSB03199 Text: SSB 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, 2007. 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, 2007.
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 2003 calendar year,
1 15 one-fifth of taxable social security benefits received.
1 16 (2) For tax years beginning in the 2004 calendar year,
1 17 two-fifths of taxable social security benefits received.
1 18 (3) For tax years beginning in the 2005 calendar year,
1 19 three-fifths of taxable social security benefits received.
1 20 (4) For tax years beginning in the 2006 calendar year,
1 21 four-fifths of taxable social security benefits received.
1 22 c. Married taxpayers, who file a joint federal income tax
1 23 return and who elect to file separate returns or who elect
1 24 separate filing on a combined return for state income tax
1 25 purposes, shall allocate between the spouses the amount of
1 26 benefits subtracted under paragraphs "a" and "b" from net
1 27 income in the ratio of the social security benefits received
1 28 by each spouse to the total of these benefits received by both
1 29 spouses.
1 30 d. Subtract, to the extent included, the amount of social
1 31 security benefits taxable under the Internal Revenue Code for
1 32 tax years beginning on or after January 1, 2007.
1 33 EXPLANATION
1 34 This bill exempts from the state individual income tax all
1 35 social security benefits received by the taxpayer for tax
2 1 years beginning on or after January 1, 2007. Prior to this
2 2 date, the tax on social security benefits is phased out. One-
2 3 fifth is exempt for tax years beginning in the 2003 calendar
2 4 year, two-fifths is exempt for tax years beginning in the 2004
2 5 calendar year, three-fifths is exempt for tax years beginning
2 6 in the 2005 calendar year, and four-fifths is exempt for tax
2 7 years beginning in the 2006 calendar year.
2 8 LSB 6602SC 79
2 9 mg/cls/14
Text: SSB03123 Text: SSB03125 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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