How to File Your Iowa Tax Return for 2017: Step-by-Step Guide

Filing your 2017 Iowa income tax can seem overwhelming, but understanding each step makes the process manageable for every taxpayer. Whether you’re an individual, farmer, small-business owner, or part-year resident, this guide will help you navigate the Iowa Department of Revenue requirements and avoid common pitfalls. You will learn when to file, which forms to use, and how to calculate income and deductions accurately, ensuring you meet deadlines without incurring fees.

Using the state’s e-file system offers faster processing, automatic error checks, and secure submission, but paper filing remains an option for those who prefer traditional methods. We’ll compare electronic and paper filing, outline payment methods for any balance due, and explain the department’s fee structure so you can make informed choices. With clear, step-by-step instructions, you will gain confidence in completing your Iowa tax return and maximizing your eligible credits.

By the end, you will understand what documents to gather—such as W-2s, 1099s, and Schedule K-1s—how to choose the right filing status, and where to find official forms and instructions. You will also discover tips tailored to nonresident taxpayers, married couples filing separately, and those claiming farm income or business deductions. This primer prepares you for a comprehensive guide that will streamline your 2017 income tax filing and assist you in obtaining any outstanding refunds.

Overview of Iowa State Income Tax for 2017 

Who Needs to File

• Single Filers: Iowa net income of $9,000 or more (under age 65) or $24,000 or more (age 65 or older). These thresholds ensure that taxpayers with sufficient income report and pay state income tax on wages, interest, dividends, and other sources.
• All Other Filing Statuses: Iowa net income of $13,500 or more (under age 65) or $32,000 or more (if you or your spouse is 65 or older). Combining incomes for married couples filing jointly or separately on a combined return determines whether a joint or separate Iowa tax return is required for accurate tax calculation.
• Special Situations: Nonresidents with $1,000 or more in Iowa-source income, part-year residents, military personnel claiming Iowa as legal residence, and anyone subject to lump-sum or alternative minimum tax must file to report taxable state income and avoid penalties.
  
  

Key Deadlines for 2017 Returns

• The Filing Deadline is April 30, 2018, for both e-file and paper returns. Meeting this deadline helps taxpayers avoid the 10% late-filing penalty and additional interest on unpaid balances.
• Payment Requirement: Pay at least 90% of your tax liability by April 30, 2018. This prevents the Iowa Department of Revenue from assessing underpayment fees, even if you file slightly late.
• No Extension Needed: Iowa does not require a filing extension, but late payments or underpayments incur a 10% penalty plus interest. Understanding these rules allows individuals and business owners to plan estimated tax payments or install an installment agreement.
  
  

What Changed for 2017

• Standard Deduction Increases: $2,000 for single filers and $4,920 for other filing statuses. These adjustments affect whether taxpayers benefit more from the Iowa standard deduction versus itemizing, impacting overall tax due.
• 529 and ABLE Savings Plans: The Iowa College Savings 529 plan deduction is capped at $3,239 per beneficiary, and the new ABLE plan is also limited to $3,239. Taxpayers should track contributions to maximize these state-specific tax benefits.
• Taxpayers' Trust Fund Credit Eliminated: Removing this credit for 2017 means fewer automatic reductions, so filers must verify all other credits and deductions to offset their tax liability.
• Election Campaign Fund Change: The $1.50 contribution option was eliminated. This affects the fee-free handling of your return but does not alter the core process of preparing and filing your state return.
  
  

What Forms to Use

Primary Form: IA 1040 Individual Income Tax Return

• IA 1040: This is the primary form for all individual Iowa taxpayers, regardless of filing status or income source. Completing IA 1040 correctly ensures the Department of Revenue has your total income, adjustments, and credits to calculate your final tax liability or refund.

Common Schedules and Supporting Forms

• Schedule IA 126 – Nonresident/Part-Year Resident Credit: Required if you lived outside Iowa for part of 2017 or earned income in multiple states. This schedule calculates the credit for taxes you paid on income earned outside Iowa, preventing double taxation.
• Schedule IA 130–Out-of-State Tax Credit: Use this if you paid income tax to another state during 2017. Filing IA 130 lets Iowa residents claim credit for those taxes, reducing their Iowa tax due.
• Schedule B – Interest and Dividend Income: Mandatory when your total Iowa taxable interest or dividends exceed $1,500. Reporting these amounts correctly ensures your investment income is taxed at the proper Iowa rates.
• Tuition and Textbook Credit (Form IA 1040 Schedule C): Allows up to $250 credit per dependent for qualifying educational expenses. Claiming this credit can lower your overall tax bill if you or your dependents paid tuition or bought required textbooks.
• Child and Dependent Care Credit (Form IA 1040 Schedule C): You can claim 30–75% of the federal child care credit for households under $45,000. This credit helps offset the cost of day care or after-school programs for qualifying dependents.
• Early Childhood Development Credit (Form IA 1040 Schedule C): Offers a 25% credit on eligible expenses for children ages 3–5. Including these expenses can reduce your Iowa tax liability if you paid for preschool or similar programs.
• Earned Income Tax Credit (EITC) (Form IA 1040 Schedule C): Equals 15% of your federal EITC amount. Low- to moderate-income taxpayers benefit from this credit, directly reducing the tax owed or increasing their refund.
  
  

Where to Find Official Forms

• Iowa Department of Revenue Forms Page: All Iowa tax forms and schedules are available online in PDF format. Downloading directly from the department’s website ensures you have the latest versions.
• Department Publications and Instructions: Detailed line-by-line instructions and examples accompany most forms. Reviewing these publications helps avoid errors and ensures you claim every credit you’re eligible for.

Step-by-Step Instructions to Complete Your Return 

Step 1: Gather Required Documents

• W-2 Forms: Collect all W-2 statements from every employer, including military pay if applicable. These forms report your wages and withholding, which are the foundation of your Iowa net income calculation.
• 1099 and K-1 Forms: Gather 1099s for interest, dividends, retirement distributions, and Schedule K-1s for partnerships or S corporations. Correctly reporting these ensures all income sources are accounted for on your Iowa return.
• Business and Farm Records: Compile profit-and-loss statements, expense receipts, and Form 1099-MISC or 1099-NEC if you’re self-employed. These documents support Schedule C or F entries and help you accurately calculate business or farm income.
• Deduction and Credit Documentation: Assemble receipts for charitable contributions, medical expenses, and state/local taxes paid, as well as records for education savings (529 or ABLE). Having these on hand lets you claim all eligible deductions and credits on IA 1040 Schedule C.
  
  

Step 2: Determine Your Filing Status

• Single: Select this option if you are unmarried, divorced, or legally separated as of December 31, 2017. Choosing Single affects your standard deduction and tax rates, so verify your status to maximize savings.
• Married Filing Jointly: File one return combining spouses’ incomes and deductions. This status often yields lower tax liability due to wider tax brackets and higher standard deductions.
• Married Filing Separately on Combined Return: Calculate separate liability worksheets, but file a single return. This option can benefit couples who prefer distinct calculations yet want joint filing simplicity.
• Married Filing Separate Returns: File completely separate IA 1040s for each spouse. Use this option if one spouse has significant deductions or liabilities that are disadvantageous when combined.
• Head of Household: This status is available if you’re unmarried and support a qualifying dependent. It offers a higher standard deduction and more favorable tax brackets than Single.
• Qualifying Widow(er) with Dependent: For those whose spouse died in the past two years and who maintain a home for a dependent. This status provides the same rates as married filing jointly for two years following the spouse’s death.
  
  

Step 3: Calculate Your Income (Lines 1–13)

• Line 1–Wages and Salaries: Enter total W-2 wages, salaries, and bonuses, including taxable military pay. Excluding non-Iowa military compensation if you’re a nonresident active-duty service member ensures correct Iowa income reporting.
• Line 2 – Interest Income: Report interest from municipal bonds (excluding Iowa-exempt) and taxable federal securities. Accurately distinguishing exempt interest from taxable interest prevents overreporting and ensures proper tax treatment.
• Line 3 – Dividend Income: Include dividends from stocks and mutual funds, adjusting for exempt state dividends. Correct classification affects your Iowa taxable income and may lower state tax liability.
• Lines 4–13 – Other Income: Sum items such as alimony, capital gains, IRA/pension distributions, rental and royalty income, and Schedule C/F net profits. Comprehensive miscellaneous income reporting avoids IRS notices and allows the full benefit of Iowa deductions.
  
  

Step 4: Calculate Adjustments to Income (Lines 14–25)

• Partial Pension and Retirement Income Exclusion: Exclude up to specified limits on pension or IRA distributions under Iowa law. This deduction lowers your Iowa AGI, potentially reducing tax owed.
• Capital Gains Deduction: Subtract qualifying long-term capital gains under Iowa’s exemption rules. Claiming this deduction can significantly reduce taxes on investment gains.
• Health and Dental Insurance Premium Deduction: Deduct 100% of health and dental coverage premiums if paid with after-tax dollars. This Iowa-specific adjustment offers savings not available on the federal return.
• Federal Conformity Adjustments: Adjust Iowa for federal depreciation, Section 179 expensing, and other conformity items. Ensuring these align with federal forms prevents discrepancies and audit triggers.
  
  

Step 5: Calculate Net Income and Deductions

• Line 26 – Net Income (Iowa AGI): Subtract total adjustments from your gross income to determine Iowa adjusted gross income. This figure serves as the basis for your deduction and credit calculations.
• Standard vs. Itemized Deduction: Choose the larger of the Iowa standard deduction ($2,000 single; $4,920 others) or your modified federal itemized deductions. Selecting the optimal deduction maximizes tax savings.
• Line 30 – Federal Tax Deduction: Deduct full federal income taxes paid, minus any federal refunds received. Iowa’s allowance of this deduction makes it one of only three states to offer it, substantially reducing taxable income.
  
  

Step 6: Calculate Tax and Credits

• Tax Calculation: Apply Iowa’s progressive rates (0.36%–8.98%) or the optional flat rate if it yields a lower tax. Verifying both methods ensures you pay the minimum required.
• Personal and Dependent Credits: Claim $40 per taxpayer and dependent, with an extra $20 credit if age 65+ or blind. Claiming these credits directly reduces your Iowa tax liability by the full amount.
• Other Credits: Include the EITC (15% of the federal amount), tuition/textbooks, child care, and food development credits. Combining all applicable credits minimizes your final tax bill.
  
  

Common Mistakes to Avoid

• Forgetting the return means that both spouses must sign a joint return: An unsigned return is considered incomplete and can delay processing or refunds.
• Incorrect Social Security Numbers: Double-check all SSNs for accuracy. Errors here can trigger Department of Revenue inquiries and slow down your filing.
• Omitting Required Schedules: Ensure you attach all schedules (IA 126, IA 130, B, etc.) as needed. Missing schedules can lead to disallowed credits or additional notices.
• Math and Entry Errors: Use tax software or a calculator to verify all line entries. Simple arithmetic mistakes often result in penalties or further review.
• Choosing the Wrong Filing Status: Review all status options, especially for married couples. Filing under an incorrect status may cost you valuable deductions or credits.

How to File Your Return

Electronic Filing (Recommended)

• Faster Processing and Refunds: E-filing your Iowa tax return speeds up processing by the Department of Revenue, helping you receive any refund sooner than with a paper filing. Built-in error checks and automatic calculations reduce mistakes that could delay your return.
• Immediate Confirmation: When you e-file, you get instant confirmation that the state has received your return. This confirms that your filing arrived before the April 30 deadline.
• Direct Deposit Option: To avoid mailing delays, choose a direct deposit for your refund. Most electronic returns accepted with direct deposit will be posted to your bank account within 10–14 days.
  
  

Paper Filing

• Mailing Address in Plain Text: Send your completed return and payment voucher IA 1040V to Iowa Department of Revenue, P.O. Box 10468, Des Moines, IA 50306-0468. Using certified mail provides proof of mailing and delivery if any questions arise.
• Manual Calculations and Attachments: Complete all line entries by hand or with a calculator and attach all required schedules (IA 126, IA 130, Schedule B, etc.), W-2s, 1099s, and copies of federal return pages when claiming the federal tax deduction.
• Longer Processing Times: Paper returns generally require 6–8 weeks (or more during peak season) to process. You must plan accordingly if you need your refund by a specific date or want to confirm payment on a balance due.
  
  

Filing Requirements Checklist

• Completed IA 1040 Form: Fill in every required line accurately, and do not forget to sign and date the return. An incomplete or unsigned form will be returned and delay processing.
• All Schedules and Supporting Forms: Attach Schedule IA 126, IA 130, Schedule B, and any credit schedules (tuition/textbook, child care, EITC) that apply to you. Missing schedules can lead to disallowed credits or notices.
• Proof of Income and Deductions: Include W-2s, 1099s, Schedule K-1s, and receipts for deductions or credits claimed. Keeping copies for your records helps if you’re audited or need to amend your return.
• Payment Voucher and Method Selected: If you owe tax, complete voucher IA 1040V and choose a payment method—ACH debit, credit/debit card, check, or money order. Paying at least 90% of your liability by April 30 avoids penalties and interest.
• Filing Confirmation or Mailing Receipt: Retain your electronic filing acknowledgement or certified mail receipt. This documentation protects you in any dispute over timely filing or payment.

How to Make a Payment 

Online Payment (Fastest Option)

• Direct Debit (ACH): When you e-file your Iowa tax return, set up an electronic funds withdrawal directly from your bank account. This free service through the Department of Revenue portal ensures your payment posts on the due date without manual intervention, helping you avoid late fees and interest.
• Credit or Debit Card: Pay with a Visa, MasterCard, Discover, or American Express card via the state’s eFile & Pay system. Although a convenience fee applies, using your card lets you meet the Iowa income tax payment deadline immediately and earn any credit card rewards.
• Scheduled Payments: Use the Department of Revenue’s scheduling feature to spread a large balance due over multiple withdrawals. You can pick dates until April 30, so you don't have to log in again.
  
  

Other Payment Methods

• By Mail: Send a check or money order payable to “Iowa Department of Revenue” along with payment voucher IA 1040V. Sending your payment to the department’s address helps you meet your Iowa tax return obligations if you choose not to e-file.
• Payment Voucher IA 1040V: Complete and include Form IA 1040V when mailing payment for any balance due. This voucher ensures the department correctly applies your payment to your 2017 Iowa return, reducing processing errors.
• Personal Check or Money Order: If you owe tax, use a personal check or money order and write your Social Security number and “2017 IA 1040” on the memo line. This clarity helps the Department of Revenue match payments to your account efficiently.
  
  

Important Payment Notes

• Timely Payment to Avoid Penalties: Paying at least 90% of your Iowa tax liability by April 30, 2018, prevents the 10% late-payment penalty and interest charges on any remaining balance. Meeting the payment deadline is as crucial as filing on time.
• Confirmation and Recordkeeping: Always save your online payment confirmation or certified mail receipt as proof you paid your Iowa tax obligations. Keeping these records safeguards you against disputes or department inquiries.
• Additional Fees: Remember that credit/debit card payments incur a processing fee, which is retained by the payment processor, not the Iowa Department of Revenue. Factor these fees into your payment amount to cover the full tax due.

How to Track Your Refund or Balance Due

Where’s My Refund Tool

Access Iowa’s online “Where’s My Refund?” portal to check your refund status 24/7. You will need your Social Security number, the tax year (2017), and the exact refund amount from your return to retrieve real-time updates on when Iowa received and processed your refund.

Processing Times by Filing Method

Electronic returns are typically processed within 10–14 days of acceptance, while paper filings can take 6–8 weeks or more during peak season. Complex or amended returns often require additional review time, so plan accordingly if you’re awaiting a large refund or need confirmation of a balance due payment.

Phone Support

Call the Iowa Department of Revenue at 515-281-3114 or toll-free at 800-367-3388 for assistance with refund inquiries or payment status. Department representatives can provide the same online information and help resolve issues related to missing documentation or unposted payments.

Final Filing Checklist 

Return Accuracy

Before you file your 2017 Iowa income tax return, carefully review every line to ensure your figures for wages, business income, farm profits, and nonresident adjustments are correct. Verifying entries for your IA 1040, including federal and state tax numbers, helps avoid penalties, fees, or Department of Revenue inquiries arising from simple math or entry errors.

Supporting Documentation

Attach all required forms—IA 1040, IA 1040V payment voucher, Schedule IA 126, IA 130, Schedule B, and any credit schedules for tuition, child care, or EITC—to your Iowa tax return. Including complete documentation for married filing separately filers, farmers, businesses, and part-year residents ensures the department can match your income and credits without delay.

Payment and Fee Confirmation

If you owe state tax, pay at least 90% of your liability by April 30, 2018, using the e-file option for ACH debit or a credit/debit card through the Department’s portal. Meeting this deadline prevents the 10% late-payment penalty and interest charges, and retaining your online confirmation or certified mail receipt proves you paid on time.

Filing Method Verification

Decide whether to e-file for faster processing and direct deposit or submit a paper return by mail to the Iowa Department of Revenue, P.O. Box 10468, Des Moines, IA 50306-0468. E-filing combines your “file and pay” steps into one action, reduces entry errors, and lets you track your refund, whereas paper filing requires manual calculations and longer processing times.

Record Retention

Keep copies of your filed tax return, supporting schedules, receipts, and payment confirmations for at least three years for tax purposes. Maintaining these records safeguards you in case of amendments, audits, or questions from the Iowa Department of Revenue about your income, deductions, or overall tax return status.

Frequently Asked Questions

What if I missed the April 30th deadline?

Suppose you miss April 30. File as soon as possible and pay at least 90% to avoid additional fees. Iowa does not require an extension but assesses a 10% penalty plus interest on underpayments. Late filers still benefit from credits like EITC and childcare. Filing promptly reduces state tax buildup and shows good faith to the Department of Revenue.

Can I e-file for free?

Up to 70% of Iowa taxpayers qualify for free federal and state e-file services via the Free File Alliance. You can prepare and file your Iowa tax return online at no charge when your adjusted gross income meets eligibility thresholds. Free electronic filing reduces errors, speeds processing, and secures your refund’s direct deposit.

What deductions are most commonly missed?

Commonly overlooked deductions on an Iowa tax return include federal income taxes paid, health and dental insurance premiums, and business or farm expense deductions that exceed federal limits. Farmers often miss depreciation adjustments under Section 179, while individuals overlook medical costs and charitable mileage. Reviewing the department’s instructions ensures that you claim all allowable deductions.

How do I request an extension?

Iowa does not provide a filing extension, so you cannot request one for your state tax return. You must file your 2017 return by April 30 and pay at least 90% of your estimated liability by that deadline. Failing to meet payment requirements results in a 10% penalty and interest, even if you file shortly afterward.

Can I file jointly if I moved mid-year?

Yes, married couples may file a joint Iowa income tax return even if one spouse moved mid-year, as long as they were married on December 31, 2017. Part-year residents should attach Schedule IA-126 to calculate credits for non-Iowa source income. Filing jointly often yields a lower state tax liability than married filing separately agreements.

What if I need to amend my 2017 return?

To amend your 2017 Iowa tax return, complete Form IA 102 Amended Return Schedule and write "Amended" at the top of your IA 1040. Include explanations for each change and attach any additional supporting forms. Mail the amended return to the Department’s address. Amended filings can take 8–10 weeks to process, so retain proof of mailing.