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