Bill Text: IA HF2359 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act exempting military survivor benefits for certain purposes of the state individual income tax and including retroactive applicability provisions. (Formerly HSB 656)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2014-03-11 - Fiscal note. HCS. [HF2359 Detail]
Download: Iowa-2013-HF2359-Introduced.html
House
File
2359
-
Introduced
HOUSE
FILE
2359
BY
COMMITTEE
ON
VETERANS
AFFAIRS
(SUCCESSOR
TO
HSB
656)
A
BILL
FOR
An
Act
exempting
military
survivor
benefits
for
certain
1
purposes
of
the
state
individual
income
tax
and
including
2
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2359
Section
1.
Section
422.5,
subsection
3,
paragraph
a,
Code
1
2014,
is
amended
to
read
as
follows:
2
a.
The
tax
shall
not
be
imposed
on
a
resident
or
nonresident
3
whose
net
income,
as
defined
in
section
422.7
,
is
thirteen
4
thousand
five
hundred
dollars
or
less
in
the
case
of
married
5
persons
filing
jointly
or
filing
separately
on
a
combined
6
return,
heads
of
household,
and
surviving
spouses
or
nine
7
thousand
dollars
or
less
in
the
case
of
all
other
persons;
8
but
in
the
event
that
the
payment
of
tax
under
this
division
9
would
reduce
the
net
income
to
less
than
thirteen
thousand
five
10
hundred
dollars
or
nine
thousand
dollars
as
applicable,
then
11
the
tax
shall
be
reduced
to
that
amount
which
would
result
12
in
allowing
the
taxpayer
to
retain
a
net
income
of
thirteen
13
thousand
five
hundred
dollars
or
nine
thousand
dollars
as
14
applicable.
The
preceding
sentence
does
not
apply
to
estates
15
or
trusts.
For
the
purpose
of
this
subsection
,
the
entire
net
16
income,
including
any
part
of
the
net
income
not
allocated
17
to
Iowa,
shall
be
taken
into
account.
For
purposes
of
this
18
subsection
,
net
income
includes
all
amounts
of
pensions
or
19
other
retirement
income
,
except
for
military
survivor
benefits
20
excluded
under
section
422.7,
subsection
31A,
paragraph
“a”
,
21
received
from
any
source
which
is
not
taxable
under
this
22
division
as
a
result
of
the
government
pension
exclusions
in
23
section
422.7
,
or
any
other
state
law.
If
the
combined
net
24
income
of
a
husband
and
wife
exceeds
thirteen
thousand
five
25
hundred
dollars,
neither
of
them
shall
receive
the
benefit
26
of
this
subsection
,
and
it
is
immaterial
whether
they
file
a
27
joint
return
or
separate
returns.
However,
if
a
husband
and
28
wife
file
separate
returns
and
have
a
combined
net
income
of
29
thirteen
thousand
five
hundred
dollars
or
less,
neither
spouse
30
shall
receive
the
benefit
of
this
paragraph,
if
one
spouse
has
31
a
net
operating
loss
and
elects
to
carry
back
or
carry
forward
32
the
loss
as
provided
in
section
422.9,
subsection
3
.
A
person
33
who
is
claimed
as
a
dependent
by
another
person
as
defined
in
34
section
422.12
shall
not
receive
the
benefit
of
this
subsection
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if
the
person
claiming
the
dependent
has
net
income
exceeding
1
thirteen
thousand
five
hundred
dollars
or
nine
thousand
dollars
2
as
applicable
or
the
person
claiming
the
dependent
and
the
3
person’s
spouse
have
combined
net
income
exceeding
thirteen
4
thousand
five
hundred
dollars
or
nine
thousand
dollars
as
5
applicable.
6
Sec.
2.
Section
422.5,
subsection
3B,
paragraph
a,
Code
7
2014,
is
amended
to
read
as
follows:
8
a.
The
tax
shall
not
be
imposed
on
a
resident
or
nonresident
9
who
is
at
least
sixty-five
years
old
on
December
31
of
10
the
tax
year
and
whose
net
income,
as
defined
in
section
11
422.7
,
is
thirty-two
thousand
dollars
or
less
in
the
case
12
of
married
persons
filing
jointly
or
filing
separately
on
a
13
combined
return,
heads
of
household,
and
surviving
spouses
or
14
twenty-four
thousand
dollars
or
less
in
the
case
of
all
other
15
persons;
but
in
the
event
that
the
payment
of
tax
under
this
16
division
would
reduce
the
net
income
to
less
than
thirty-two
17
thousand
dollars
or
twenty-four
thousand
dollars
as
applicable,
18
then
the
tax
shall
be
reduced
to
that
amount
which
would
result
19
in
allowing
the
taxpayer
to
retain
a
net
income
of
thirty-two
20
thousand
dollars
or
twenty-four
thousand
dollars
as
applicable.
21
The
preceding
sentence
does
not
apply
to
estates
or
trusts.
22
For
the
purpose
of
this
subsection
,
the
entire
net
income,
23
including
any
part
of
the
net
income
not
allocated
to
Iowa,
24
shall
be
taken
into
account.
For
purposes
of
this
subsection
,
25
net
income
includes
all
amounts
of
pensions
or
other
retirement
26
income
,
except
for
military
survivor
benefits
excluded
under
27
section
422.7,
subsection
31A,
paragraph
“a”
,
received
from
any
28
source
which
is
not
taxable
under
this
division
as
a
result
29
of
the
government
pension
exclusions
in
section
422.7
,
or
any
30
other
state
law.
If
the
combined
net
income
of
a
husband
and
31
wife
exceeds
thirty-two
thousand
dollars,
neither
of
them
shall
32
receive
the
benefit
of
this
subsection
,
and
it
is
immaterial
33
whether
they
file
a
joint
return
or
separate
returns.
However,
34
if
a
husband
and
wife
file
separate
returns
and
have
a
combined
35
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4
H.F.
2359
net
income
of
thirty-two
thousand
dollars
or
less,
neither
1
spouse
shall
receive
the
benefit
of
this
paragraph,
if
one
2
spouse
has
a
net
operating
loss
and
elects
to
carry
back
or
3
carry
forward
the
loss
as
provided
in
section
422.9,
subsection
4
3
.
A
person
who
is
claimed
as
a
dependent
by
another
person
as
5
defined
in
section
422.12
shall
not
receive
the
benefit
of
this
6
subsection
if
the
person
claiming
the
dependent
has
net
income
7
exceeding
thirty-two
thousand
dollars
or
twenty-four
thousand
8
dollars
as
applicable
or
the
person
claiming
the
dependent
9
and
the
person’s
spouse
have
combined
net
income
exceeding
10
thirty-two
thousand
dollars
or
twenty-four
thousand
dollars
as
11
applicable.
12
Sec.
3.
Section
422.7,
Code
2014,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
31A.
a.
Subtract,
to
the
extent
included,
15
amounts
received
as
survivor
benefits
by
a
taxpayer
from
the
16
federal
government
pursuant
to
10
U.S.C.
§1447,
et
seq.
17
b.
The
exclusion
of
survivor
benefits
under
this
subsection
18
is
in
addition
to
any
exclusion
provided
under
subsection
31.
19
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
division
of
this
20
Act
applies
retroactively
to
January
1,
2014,
for
tax
years
21
beginning
on
or
after
that
date.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
exempts
military
survivor
benefits
for
certain
26
purposes
of
the
state
individual
income
tax.
27
The
bill
exempts
from
the
individual
income
tax
all
28
military
survivor
benefits
received
by
a
taxpayer
from
the
29
federal
government.
The
exemption
is
in
addition
to
the
30
general
pension
exclusion
in
current
Iowa
Code.
The
bill
31
also
exempts
military
survivor
benefits
from
the
net
income
32
calculations
used
to
determine
certain
personal
income
tax
33
filing
thresholds.
34
The
bill
applies
retroactively
to
January
1,
2014,
for
tax
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