THE NEW FEDERAL TAX BREAKS INCLUDED IN THE BIG BEAUTIFUL BILL INCLUDE NO TAXES ON TIPS, OVERTIME, AND CAR LOAN INTEREST.
AN EXTRA DEDUCTION FOR SENIORS WILL APPLY FOR IOWA TAXES, BUT THERE WASN’T TIME TO UPDATE THE IOWA TAX FORMS IN TIME FOR 2025 TAX FILING.
THE STATE SAYS THEY WILL AUTOMATICALLY ADJUST RETURNS TO GIVE THE CREDITS.
THE SENIOR DEDUCTION IS FOR PEOPLE 65 OR OLDER, AN ADDITIONAL SIX-THOUSAND-DOLLAR DEDUCTION PER PERSON, OR 12-THOUSAND-DOLLARS FOR MARRIED COUPLES FILING JOINTLY.
IT PHASES FOR HIGHER INCOMES.
