13 Iowa income taxes and Iowa tax refund. As provided in subrule 303.5(1), Iowa

individual income taxes paid or accrued are allowable itemized deductions for federal income tax purposes, but are not allowable itemized deductions for Iowa income tax purposes. To the extent Iowa income taxes were deducted as itemized deductions for federal tax purposes, they shall be disallowed as an itemized deduction for Iowa income tax purposes. Refunds of Iowa income taxes to the extent that the refunds were included in the determination of federal adjusted gross income shall be allowed as a reduction to Iowa adjusted gross income, only to the extent that an itemized deduction for Iowa income taxes was disallowed on a prior Iowa return. Iowa Revenue[701] Ch 303, p.10 IAC 2/5/25 income tax refunds resulting from Iowa refundable income tax credits are not allowed as a reduction for Iowa income tax purposes. Example: Individual A made Iowa estimated payments of $2,000 during the 2003 tax year. The $2,000 of estimated payments was claimed as an itemized deduction for federal tax purposes, but was not allowed as an itemized deduction for Iowa tax purposes. The 2003 Iowa return reported a tax liability of $1,600. Individual A had $2,000 of Iowa estimated payments and a $500 ethanol blended gasoline tax credit, and received a $900 Iowa tax refund in 2004. Of the $900 refund reported as income on the federal return, Individual A will be allowed a $400 ($2,000 - $1,600) reduction on the Iowa return for 2004. This rule is intended to implement Iowa Code section 422.9. [Editorial change: IAC Supplement 11/2/22; Editorial change: IAC Supplement 10/18/23] [Filed 12/12/74] [Filed 12/10/76, Notice 9/22/76—published 12/29/76, effective 2/2/77] [Filed 10/28/77, Notice 9/21/77—published 11/16/77, effective 12/21/77] [Filed 9/18/78, Notice 7/26/78—published 10/18/78, effective 11/22/78] [Filed 12/7/79, Notice 10/31/79—published 12/26/79, effective 1/30/80] [Filed emergency 7/17/80—published 8/6/80, effective 7/17/80] [Filed 10/22/82, Notice 9/15/82—published 11/10/82, effective 12/15/82] [Filed 12/3/82, Notice 10/27/82—published 12/22/82, effective 1/26/83] [Filed 8/25/83, Notice 7/20/83—published 9/14/83, effective 10/19/83] [Filed 12/16/83, Notice 11/9/83—published 1/4/84, effective 2/8/84] [Filed 7/27/84, Notice 6/20/84—published 8/15/84, effective 9/19/84] [Filed 8/10/84, Notice 7/4/84—published 8/29/84, effective 10/3/84] [Filed emergency 11/14/86—published 12/17/86, effective 11/14/86] [Filed emergency 12/23/87—published 1/13/88, effective 12/23/87] [Filed 12/23/87, Notice 11/18/87—published 1/13/88, effective 2/17/88] [Filed 2/19/88, Notice 1/13/88—published 3/9/88, effective 4/13/88] [Filed 8/19/88, Notice 7/13/88—published 9/7/88, effective 10/12/88] [Filed 1/19/90, Notice 12/13/89—published 2/7/90, effective 3/14/90] [Filed 11/7/91, Notice 10/2/91—published 11/27/91, effective 1/1/92]◊ [Filed 9/11/92, Notice 8/5/92—published 9/30/92, effective 11/4/92] [Filed 3/26/93, Notice 2/17/93—published 4/14/93, effective 5/19/93] [Filed 5/20/94, Notice 4/13/94—published 6/8/94, effective 7/13/94] [Filed 9/23/94, Notice 8/17/94—published 10/12/94, effective 11/16/94] [Filed 1/12/96, Notice 12/6/95—published 1/31/96, effective 3/6/96] [Filed 6/14/96, Notice 5/8/96—published 7/3/96, effective 8/7/96] [Filed 8/23/96, Notice 7/17/96—published 9/11/96, effective 10/16/96] [Filed 9/19/97, Notice 8/13/97—published 10/8/97, effective 11/12/97] [Filed 12/12/97, Notice 11/5/97—published 12/31/97, effective 2/4/98] [Filed 2/20/98, Notice 1/14/98—published 3/11/98, effective 4/15/98] [Filed 5/15/98, Notice 4/8/98—published 6/3/98, effective 7/8/98] [Filed 3/15/02, Notice 1/23/02—published 4/3/02, effective 5/8/02] [Filed 10/11/02, Notice 9/4/02—published 10/30/02, effective 12/4/02] [Filed 9/26/03, Notice 8/20/03—published 10/15/03, effective 11/19/03] [Filed 11/6/03, Notice 10/1/03—published 11/26/03, effective 12/31/03] [Filed 1/30/04, Notice 12/24/03—published 2/18/04, effective 3/24/04]◊ [Filed 11/4/04, Notice 9/29/04—published 11/24/04, effective 12/29/04] [Filed 9/22/05, Notice 8/3/05—published 10/12/05, effective 11/16/05] [Filed 7/28/06, Notice 6/21/06—published 8/16/06, effective 9/20/06] [Filed 11/1/06, Notice 8/16/06—published 11/22/06, effective 12/27/06] [Filed 3/7/08, Notice 1/30/08—published 3/26/08, effective 4/30/08] [Filed 10/31/08, Notice 9/24/08—published 11/19/08, effective 12/24/08]◊ Revenue[701] IAC 2/5/25 Ch 303, p.11 ◊ [Filed ARC 7761B (Notice ARC 7632B, IAB 3/11/09), IAB 5/6/09, effective 6/10/09] [Filed ARC 8589B (Notice ARC 8430B, IAB 12/30/09), IAB 3/10/10, effective 4/14/10] [Filed ARC 8702B (Notice ARC 8512B, IAB 2/10/10), IAB 4/21/10, effective 5/26/10] [Filed ARC 9820B (Notice ARC 9740B, IAB 9/7/11), IAB 11/2/11, effective 12/7/11] [Filed ARC 1101C (Notice ARC 0976C, IAB 8/21/13), IAB 10/16/13, effective 11/20/13] [Filed ARC 1138C (Notice ARC 0998C, IAB 9/4/13), IAB 10/30/13, effective 12/4/13] [Filed ARC 1303C (Notice ARC 1231C, IAB 12/11/13), IAB 2/5/14, effective 3/12/14] [Filed ARC 1665C (Notice ARC 1590C, IAB 8/20/14), IAB 10/15/14, effective 11/19/14] [Filed ARC 3664C (Notice ARC 3542C, IAB 1/3/18), IAB 2/28/18, effective 4/4/18] [Filed ARC 3749C (Notice ARC 3579C, IAB 1/17/18), IAB 4/11/18, effective 5/16/18] [Editorial change: IAC Supplement 11/2/22] [Editorial change: IAC Supplement 10/18/23] Two or more ARCs Revenue[701] Ch 303, p.12 IAC 2/5/25