You may itemize deductions or claim the Iowa standard deduction, whichever is larger. You may itemize deductions on your Iowa return even if you did not itemize deductions on your federal return. You must complete the Iowa Schedule A to itemize deductions on the Iowa return. A number of adjustments and separate Iowa calculations are necessary to determine the correct deduction. The new $10,000 federal cap on the itemized deduction for state and local taxes does not apply for Iowa purposes. Taxpayers may still deduct eligible state and local taxes paid, independent of the federal dollar limitation.
Standard Deduction
For tax year 2021, the standard deduction is:
Filing Status 1: $2,130
Filing Status 3 or 4: $2,130 for each spouse
Filing Status 2, 5, or 6: $5,240
Itemized Deduction
If you itemize, complete the Iowa Schedule A, check the itemized box on line 37 and enter your total itemized deduction. Include your Iowa Schedule A with your return. The federal Schedule A cannot be used with the Iowa return.
The tax year 2021 individual income tax standard deductions are:
- $2,130 for single taxpayers
- $2,130 for married taxpayers filing separately
- $5,240 for married filing jointly