Text: SSB03111 Text: SSB03113 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 2003, 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, 2009. 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, 2009.
1 12 b. (1) For tax years beginning in the 2006 calendar year,
1 13 subtract, to the extent included, twenty-five percent of
1 14 taxable social security benefits remaining after the
1 15 subtraction in paragraph "a".
1 16 (2) For tax years beginning in the 2007 calendar year,
1 17 subtract, to the extent included, fifty percent of taxable
1 18 social security benefits remaining after the subtraction in
1 19 paragraph "a".
1 20 (3) For tax years beginning in the 2008 calendar year,
1 21 subtract, to the extent included, seventy-five percent of
1 22 taxable social security benefits remaining after the
1 23 subtraction in paragraph "a".
1 24 c. Married taxpayers, who file a joint federal income tax
1 25 return and who elect to file separate returns or who elect
1 26 separate filing on a combined return for state income tax
1 27 purposes, shall allocate between the spouses the amount of
1 28 benefits subtracted under paragraphs "a" and "b" from net
1 29 income in the ratio of the social security benefits received
1 30 by each spouse to the total of these benefits received by both
1 31 spouses.
1 32 d. For tax years beginning on or after January 1, 2009,
1 33 subtract, to the extent included, the amount of social
1 34 security benefits taxable under section 86 of the Internal
1 35 Revenue Code.
2 1 Sec. 2. Section 422.7, subsection 31, Code Supplement
2 2 2003, is amended to read as follows:
2 3 31. a. For a person who is disabled, or is fifty-five
2 4 years of age or older, or is the surviving spouse of an
2 5 individual or a survivor having an insurable interest in an
2 6 individual who would have qualified for the exemption under
2 7 this subsection for the tax year, subtract, to the extent
2 8 included, the total amount of a governmental or other pension
2 9 or retirement pay, including, but not limited to, defined
2 10 benefit or defined contribution plans, annuities, individual
2 11 retirement accounts, plans maintained or contributed to by an
2 12 employer, or maintained or contributed to by a self-employed
2 13 person as an employer, and deferred compensation plans or any
2 14 earnings attributable to the deferred compensation plans, up
2 15 to a maximum of six thousand dollars for a person, other than
2 16 a husband or wife, who files a separate state income tax
2 17 return and up to a maximum of twelve thousand dollars for a
2 18 husband and wife who file a joint state income tax return.
2 19 However, a surviving spouse who is not disabled or fifty-five
2 20 years of age or older can only exclude the amount of pension
2 21 or retirement pay received as a result of the death of the
2 22 other spouse. A husband and wife filing separate state income
2 23 tax returns or separately on a combined state return are
2 24 allowed a combined maximum exclusion under this subsection of
2 25 up to twelve thousand dollars. The twelve thousand dollar
2 26 exclusion shall be allocated to the husband or wife in the
2 27 proportion that each spouse's respective pension and
2 28 retirement pay received bears to total combined pension and
2 29 retirement pay received.
2 30 b. For the tax year beginning January 1, 2006, subtract an
2 31 amount equal to twenty-five percent of the income described in
2 32 paragraph "a" after the exclusion in paragraph "a" is
2 33 subtracted.
2 34 c. For the tax year beginning January 1, 2007, subtract an
2 35 amount equal to fifty percent of the income described in
3 1 paragraph "a" after the exclusion in paragraph "a" is
3 2 subtracted.
3 3 d. For the tax year beginning January 1, 2008, subtract an
3 4 amount equal to seventy-five percent of the income described
3 5 in paragraph "a" after the exclusion in paragraph "a" is
3 6 subtracted.
3 7 e. For tax years beginning on or after January 1, 2009,
3 8 subtract the total amount of the income described in paragraph
3 9 "a".
3 10 f. For a husband and wife filing separate state income tax
3 11 returns or separately on a combined state return, the
3 12 additional exclusion in paragraphs "b" through "e" shall be
3 13 allocated to the husband or wife in the proportion that each
3 14 spouse's respective pension and retirement pay received bears
3 15 to total combined pension and retirement pay received.
3 16 EXPLANATION
3 17 This bill phases out the state individual income tax on
3 18 pension and retirement income and phases out the state
3 19 individual income tax on social security benefits over the
3 20 same period of time.
3 21 For the tax year beginning January 1, 2006, an additional
3 22 25 percent of pension or retirement income is exempted after
3 23 the $6,000 (for single filers) or $12,000 (for married filers)
3 24 is subtracted. For the tax year beginning January 1, 2007, an
3 25 additional 50 percent is exempted; for the tax year beginning
3 26 January 1, 2008, an additional 75 percent is exempted; and for
3 27 tax years beginning January 1, 2009, and all subsequent tax
3 28 years, the total amount of pension and retirement income is
3 29 exempted from state income taxation.
3 30 For the tax year beginning on January 1, 2006, 25 percent
3 31 of taxable social security benefits are exempted; for the tax
3 32 year beginning on January 1, 2007, 50 percent of taxable
3 33 social security benefits are exempted; for the tax year
3 34 beginning on January 1, 2008, 75 percent of taxable social
3 35 security benefits are exempted; and for tax years beginning on
4 1 or after January 1, 2009, 100 percent of social security
4 2 benefits are exempted from state income taxation.
4 3 LSB 6402SC 80
4 4 sc/sh/8
Text: SSB03111 Text: SSB03113 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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