Iowa Status on Federal Extenders for Tax Year 2008

April 27, 2009

Coupling with Federal Extenders

The Iowa Department of Revenue continues to receive inquiries about whether Iowa will adopt the federal provisions for what are commonly referred to as the federal "extenders." The Iowa Legislature has adjourned its 2009 session. Iowa will not be coupling with the 2008 federal law provisions related to extenders.

The federal extender provisions include:

Iowa income tax returns must be filed based upon current Iowa law. Therefore, the extenders should not be included on Iowa returns. Taxpayers who have already filed Iowa returns and claimed one or more of the extenders should file an Iowa amended return to exclude any items originally claimed that would not qualify under current Iowa law. The Department made an assumption when printing the 2008 income tax booklet that Iowa would follow the federal treatment; therefore, the information in that booklet is contrary to this updated position.

Other Federal Changes

As a reminder, Iowa did couple with two federal income tax changes that became effective after January 1, 2008: