Text: SF02197 Text: SF02199 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.7, subsection 31, Code Supplement 1 2 2003, is amended to read as follows: 1 3 31. a. For a person who is disabled, or is fifty-five 1 4 years of age or older, or is the surviving spouse of an 1 5 individual or a survivor having an insurable interest in an 1 6 individual who would have qualified for the exemption under 1 7 this subsection for the tax year, subtract, to the extent 1 8 included, the total amount of a governmental or other pension 1 9 or retirement pay, including, but not limited to, defined 1 10 benefit or defined contribution plans, annuities, individual 1 11 retirement accounts, plans maintained or contributed to by an 1 12 employer, or maintained or contributed to by a self-employed 1 13 person as an employer, and deferred compensation plans or any 1 14 earnings attributable to the deferred compensation plans, up 1 15 to a maximum of six thousand dollars for a person, other than 1 16 a husband or wife, who files a separate state income tax 1 17 return and up to a maximum of twelve thousand dollars for a 1 18 husband and wife who file a joint state income tax return. 1 19 However, a surviving spouse who is not disabled or fifty-five 1 20 years of age or older can only exclude the amount of pension 1 21 or retirement pay received as a result of the death of the 1 22 other spouse. A husband and wife filing separate state income 1 23 tax returns or separately on a combined state return are 1 24 allowed a combined maximum exclusion under this subsection of 1 25 up to twelve thousand dollars. The twelve thousand dollar 1 26 exclusion shall be allocated to the husband or wife in the 1 27 proportion that each spouse's respective pension and 1 28 retirement pay received bears to total combined pension and 1 29 retirement pay received. 1 30 b. In addition to the exclusion in paragraph "a", for a 1 31 person described in paragraph "a" who claims for the tax year 1 32 a dependent who is younger than eighteen years of age, 1 33 subtract up to a maximum of four thousand dollars for a 1 34 person, other than a husband and wife, who files a separate 1 35 state income tax return and up to a maximum of eight thousand 2 1 dollars for a husband and wife who file a joint state income 2 2 tax return. A husband and wife filing separate state income 2 3 tax returns or separately on a combined state return shall 2 4 allocate to the husband and wife the additional exclusion 2 5 allowed in this paragraph in the proportion that each spouse's 2 6 respective pension and retirement pay received bears to total 2 7 combined pension and retirement pay received. 2 8 For purposes of this paragraph, "dependent" means the same 2 9 as that term is defined in section 152 of the Internal Revenue 2 10 Code except it does not include a stepchild of the taxpayer or 2 11 a person treated as a child of the taxpayer as described in 2 12 section 152(b)(2) of the Internal Revenue Code. 2 13 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 2 14 retroactively to January 1, 2004, for tax years beginning on 2 15 or after that date. 2 16 EXPLANATION 2 17 Current law allows a person who is disabled, or is 55 years 2 18 of age or older, or is the surviving spouse of such a person 2 19 to exclude up to $6,000 (single filer) or $12,000 (married 2 20 filers) of pension or retirement pay received in the tax year. 2 21 This bill allows an additional exclusion of pension or 2 22 retirement pay in the amount of $4,000 (single filer) or 2 23 $8,000 (married filers) if the person claims for the tax year 2 24 a dependent who is younger than 18 years of age. 2 25 The bill provides that "dependent" does not include a 2 26 stepchild of the taxpayer, a person legally adopted by the 2 27 taxpayer, a foster child placed in the taxpayer's home, or a 2 28 child placed in the taxpayer's home prior to legal adoption by 2 29 the taxpayer. 2 30 The bill applies retroactively to January 1, 2004, for tax 2 31 years beginning on or after that date. 2 32 LSB 5501XS 80 2 33 sc/pj/5
Text: SF02197 Text: SF02199 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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