The Iowa Earned Income Tax Credit is a refundable credit.
This credit is available only to taxpayers who qualify for the federal Earned Income Tax Credit (EITC).
To find out if you qualify for federal EITC, see the IRS EITC information or call the IRS at 1-800-829-1040.
To calculate the Iowa Earned Income Tax Credit, multiply your federal EITC by .15 (15%).
If you are filing an Iowa return ONLY to claim EITC
If you qualify for the low income exemption as explained in the instructions for line 26 and are filing an Iowa return only to claim a refund of the Iowa EITC, enter the words “low income exemption” in the area to the left of your net income figure on line 26. Enter zero on lines 55, 56, and 58. Enter the amount of your Iowa EITC on lines 61, 63, 68, 69, and 70.
Nonresidents and Part-year Residents
The Iowa EITC must be adjusted using the formula athe the following link: https://tax.iowa.gov/expanded-instructions/iowa-earned-income-tax-credit-1