Something new on Iowa tax returns this year is the “Taxpayers Trust Fund Tax Credit.” This credit is $54 for a single taxpayer or $108 total for a married couple.
The credit is claimed on Line 64 of the Iowa Form 1040.
It’s pretty straightforward, but there are a few quirks:
- To claim the credit, you must file your 2013 Iowa tax return by the extended due date of October 31, 2014. If the return is filed after October 31, you can’t claim the credit.
- The credit is the lesser of $54 or your net tax liability after accounting for other credits except for withholdings and estimated tax payments (those other credits include the Iowa earned income credit, the credit for out-of-state taxes, etc.). If your tax liability after other credits is $0, then your Trust Fund Tax Credit would be $0.
For more information, click here.