Iowa Announces Additional Change to the Health Insurance Premiums Deduction and Qualified Business Income (QBI)
Early in the 2023 Tax Season IA instructed taxpayers to add back their QBI deduction when determining the IA Health Insurance Premiums Deduction. Later in the season, IA determined QBI should not be included. Lacerte was updated to reflect this change.
However, as the deadline quickly approached Iowa again notified taxpayers this was to be switched back to the original treatment. Lacerte was once again updated to reflect these changes.
What does this mean for returns already processed?
It is recommended returns with the Iowa Health Insurance Premiums Deduction be reviewed to determine whether or not this change in calculation impacts the total deduction reported. Returns showing a change in the calculation when QBI is once again included should be adjusted to reflect the correct calculation and filed as an amended return.
