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Level 4
February 3, 2024
Question

Has anyone else noticed that the Iowa deduction for educator expenses is not correct if you have less than $500 of educator expenses? The Iowa return starts with federal taxable income which has the educator expenses taken out. Then again on IA SCH 1

  • February 3, 2024
  • 1 reply
  • 7 views

Iowa starts with Federal taxable income which is already reduced by the education deduction. Then on schedule sch 1 as an adjustment to federal taxable income the education deduction  is taken again. What ever you put in for your federal deduction is doubled on Iowa up to the Iowa $500 limit.

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    1 reply

    Level 2
    February 6, 2024

    I noticed that too.  I added another adjustment to the Iowa return called "Other federal adjustment from Schedule 1" and added back the $300 from the Federal return.  In the end the net is the additional $200 that Iowa allows.

    Not sure it's the right thing to do, but it adds up.  

    TollyAuthor
    Level 4
    February 6, 2024

    Yeah, I did the same thing. They need to get it fixed though