House File 69 - Introduced



                                       HOUSE FILE       
                                       BY  HOGG


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the calculation of the amount of social
  2    security benefits received that are subject to individual
  3    income tax and including a retroactive applicability date
  4    provision.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1516HH 81
  7 mg/gg/14

PAG LIN



  1  1    Section 1.  Section 422.7, subsection 13, Code 2005, is
  1  2 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.  The amount of social security benefits taxable as
  1  7 provided in section 86 of the Internal Revenue Code, as
  1  8 amended up to and including January 1, 1993, with the
  1  9 adjustments in paragraph "b", continues to apply for state
  1 10 income tax purposes for tax years beginning on or after
  1 11 January 1, 1994.  Married taxpayers, who file a joint federal
  1 12 income tax return and who elect to file separate returns or
  1 13 who elect separate filing on a combined return for state
  1 14 income tax purposes, shall allocate between the spouses the
  1 15 amount of benefits subtracted from net income in the ratio of
  1 16 the social security benefits received by each spouse to the
  1 17 total of these benefits received by both spouses.
  1 18    b.  In computing the amount of taxable social security
  1 19 benefits under paragraph "a" for tax years beginning on or
  1 20 after January 1, 2005, the term "base amount" in section 86 of
  1 21 the Internal Revenue Code, as amended up to and including
  1 22 January 1, 1993, means one of the following:
  1 23    (1)  Except as otherwise provided in subparagraphs (2) and
  1 24 (3), fifty thousand dollars.
  1 25    (2)  In the case of a joint return, sixty=four thousand
  1 26 dollars.
  1 27    (3)  In the case of a taxpayer who is married but does not
  1 28 file a joint return and does not live apart from the
  1 29 taxpayer's spouse at all times during the tax year, zero.
  1 30    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 31 retroactively to January 1, 2005, for tax years beginning on
  1 32 or after that date.
  1 33                           EXPLANATION
  1 34
  1 35    This bill decreases the amount of social security benefits
  2  1 taxable for income tax purposes by increasing the base amount
  2  2 above which some of the benefits are taxable.
  2  3    The bill applies retroactively to January 1, 2005, for tax
  2  4 years beginning on or after that date.
  2  5 LSB 1516HH 81
  2  6 mg/gg/14