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

[Tolly]

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.

[sfoster]

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.  

[Tolly]

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