Topics:

Step: 3

Step Subject: Exemption Credits

Instruction Year: 2025

a. Personal Credit

If you are filing single (status 1), married filing separately (status 3) or qualifying surviving spouse (status 5), enter 1 in the Personal Credit space.

If you are filing married filing jointly (status 2) or head of household (status 4), you are eligible for an extra credit and should enter 2 in the Personal Credit space.

Add the number of personal credits and multiply by $40. Enter this amount on the line.

Note to dependents filing their own returns:

You may claim a $40 personal exemption credit even if you are claimed as a dependent on another person's Iowa return.

b. Additional Personal Credit: 65 or older or blind

If you were 65 or older on or before January 1, 2026, you may take an additional personal credit.

If your spouse was 65 or older on or before January 1, 2026, and you are filing a joint return (status 2), you may take an additional personal credit for your spouse.

If you were blind on December 31, 2025, you may take an additional personal credit.

If your spouse was blind on December 31, 2025, and you are filing a joint return (status 2), you may take an additional personal credit for your spouse.

Add the number of credits for 65 or older and blind and multiply by $20. Enter this amount on the line.

c. Dependents: Consult IRS Publication 17 to learn who qualifies as a dependent.

Enter the number of dependent children and other dependents you are claiming for federal income tax purposes. Add the number of dependent credits and multiply by $40. Enter this amount on the line.

Federal tax law determines whether or not a person is a dependent. Consult IRS Publication 17 to learn who qualifies as a dependent. The IRS has guidelines that also determine which parent/guardian can claim a dependent when separate returns are filed (such as in the case of divorced parents). The Iowa tax law follows federal guidelines.

d. Total

Add the dollar amounts and enter on Step 3, line d and on line 8.

Dependent(s)

Enter the first name, last name, social security number, and relationship to you for each dependent claimed on the tax return. If you have more than four dependents, check the box and include a separate page listing any additional dependents with this return.