Bill Text: IA SF96 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the exclusion of certain retirement income from the calculation of net income, and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-01-20 - Subcommittee: Dawson, Dotzler, and Goodwin. S.J. 130. [SF96 Detail]
Download: Iowa-2021-SF96-Introduced.html
Senate
File
96
-
Introduced
SENATE
FILE
96
BY
ZAUN
A
BILL
FOR
An
Act
relating
to
the
exclusion
of
certain
retirement
1
income
from
the
calculation
of
net
income,
and
including
2
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
422.7,
subsection
31,
Code
2021,
is
1
amended
to
read
as
follows:
2
31.
a.
For
a
person
who
is
disabled,
or
is
fifty-five
years
3
of
age
or
older,
or
is
the
surviving
spouse
of
an
individual
4
or
a
survivor
having
an
insurable
interest
in
an
individual
5
who
would
have
qualified
for
the
exemption
exclusion
under
6
this
subsection
for
the
tax
year,
subtract,
to
the
extent
7
included,
the
total
amount
of
a
governmental
or
other
pension
8
or
retirement
pay,
including,
but
not
limited
to,
defined
9
benefit
or
defined
contribution
plans,
annuities,
individual
10
retirement
accounts,
plans
maintained
or
contributed
to
by
an
11
employer,
or
maintained
or
contributed
to
by
a
self-employed
12
person
as
an
employer,
and
deferred
compensation
plans
or
any
13
earnings
attributable
to
the
deferred
compensation
plans,
up
14
to
a
the
maximum
of
six
thousand
dollars
amount
provided
in
15
paragraph
“b”
for
a
person,
other
than
a
husband
or
wife
married
16
person
,
who
files
a
separate
state
income
tax
return
,
and
up
17
to
a
the
maximum
of
twelve
thousand
dollars
amount
provided
in
18
paragraph
“c”
for
a
husband
and
wife
married
persons
who
file
19
a
joint
state
income
tax
return.
However,
a
surviving
spouse
20
who
is
not
disabled
or
fifty-five
years
of
age
or
older
can
21
only
exclude
the
amount
of
pension
or
retirement
pay
received
22
as
a
result
of
the
death
of
the
other
spouse.
A
husband
and
23
wife
Married
persons
filing
separate
state
income
tax
returns
24
or
separately
on
a
combined
state
return
are
allowed
a
combined
25
maximum
exclusion
under
this
subsection
of
up
to
twelve
26
thousand
dollars
the
maximum
amount
under
paragraph
“c”
.
The
27
twelve
thousand
dollar
exclusion
under
paragraph
“c”
shall
be
28
allocated
to
the
husband
or
wife
either
married
person
in
the
29
proportion
that
each
spouse’s
respective
pension
and
retirement
30
pay
received
bears
to
total
combined
pension
and
retirement
pay
31
received.
32
b.
(1)
(a)
For
a
single
person,
other
than
married
persons
33
who
file
separately,
the
maximum
amount
of
the
exclusion
under
34
paragraph
“a”
shall
be
as
follows:
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(i)
For
tax
years
beginning
in
the
2021
calendar
year,
seven
1
thousand
two
hundred
dollars.
2
(ii)
For
tax
years
beginning
in
the
2022
calendar
year,
3
eight
thousand
four
hundred
dollars.
4
(iii)
For
tax
years
beginning
in
the
2023
calendar
year,
5
nine
thousand
six
hundred
dollars.
6
(iv)
For
tax
years
beginning
in
the
2024
calendar
year,
ten
7
thousand
eight
hundred
dollars.
8
(b)
This
subparagraph
is
repealed
January
1,
2025.
9
(2)
For
a
single
person,
other
than
married
persons
who
file
10
separately,
the
maximum
amount
of
the
exclusion
under
paragraph
11
“a”
for
tax
years
beginning
on
or
after
January
1,
2025,
shall
12
be
twelve
thousand
dollars.
13
c.
(1)
(a)
For
married
persons
who
file
a
joint
state
tax
14
return,
the
maximum
amount
of
the
exclusion
under
paragraph
“a”
15
shall
be
as
follows:
16
(i)
For
tax
years
beginning
in
the
2021
calendar
year,
17
fourteen
thousand
four
hundred
dollars.
18
(ii)
For
tax
years
beginning
in
the
2022
calendar
year,
19
sixteen
thousand
eight
hundred
dollars.
20
(iii)
For
tax
years
beginning
in
the
2023
calendar
year,
21
nineteen
thousand
two
hundred
dollars.
22
(iv)
For
tax
years
beginning
in
the
2024
calendar
year,
23
twenty-one
thousand
six
hundred
dollars.
24
(b)
This
subparagraph
is
repealed
January
1,
2025.
25
(2)
For
married
persons
who
file
a
joint
state
tax
return,
26
the
maximum
amount
of
the
exclusion
under
paragraph
“a”
for
27
tax
years
beginning
on
or
after
January
1,
2025,
shall
be
28
twenty-four
thousand
dollars.
29
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
30
retroactively
to
January
1,
2021,
for
tax
years
beginning
on
31
or
after
that
date.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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This
bill
relates
to
the
exclusion
of
certain
retirement
1
income
from
the
calculation
of
net
income.
2
Currently,
a
taxpayer
who
is
disabled,
who
is
at
least
55
3
years
of
age,
or
who
is
the
surviving
spouse
or
other
specified
4
survivor
of
that
qualifying
taxpayer
may
exclude
a
maximum
5
of
$6,000
of
other
retirement
income
($12,000
for
married
6
couples).
7
The
bill
phases
in
over
a
five-year
period
an
increase
to
8
the
retirement
income
exclusion
referenced
above.
The
base
9
retirement
income
exclusion
amount
for
single
filers
($6,000)
10
and
married
filers
($12,000)
increases
for
tax
years
beginning
11
in
2021,
2022,
2023,
and
2024
by
20
percent,
40
percent,
60
12
percent,
and
80
percent,
respectively.
For
tax
years
beginning
13
in
2025
or
later,
the
retirement
income
exclusion
is
$12,000
14
for
single
filers
and
$24,000
for
married
filers.
15
The
bill
does
not
affect
the
current
exclusion
of
military
16
retirement
income.
17
The
bill
applies
retroactively
to
January
1,
2021,
for
tax
18
years
beginning
on
or
after
that
date.
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