Your Guide on How to File Your Iowa Tax Return 2018 Effectively

Filing your Iowa state income tax return for 2018 may feel intimidating, especially if you are unfamiliar with state-specific rules. This guide will show you how to file your 2018 Iowa tax return with clear, step-by-step instructions. Whether you are an individual, sole proprietor, or small business owner, you will find the information to accurately prepare and submit your return.

This resource is designed for taxpayers who want a straightforward process without missing essential details. It covers who must file, which Iowa 2018 tax forms apply to your situation, and the deadlines you need to meet. You will also learn about available tax credits and deductions that could lower your liability, along with tips to avoid common errors that may delay your Iowa tax refund.

By following Iowa’s filing requirements, you can ensure compliance with the Iowa Department of Revenue and avoid unnecessary tax penalties and interest. The steps in this guide align with official instructions, so you can feel confident that your return meets state rules. With proper preparation, filing your income tax return 2018 can be smooth and manageable.

Overview of Iowa State Income Tax for 2018

Iowa’s 2018 tax rules included specific income thresholds, filing deadlines, and changes that affected taxpayers statewide. Understanding these details will help determine whether you must file an Iowa state income tax return and what forms and credits may apply.

Who Needs to File Iowa Tax Returns

If you meet the state's residency and income requirements, you must file an individual income tax return in Iowa for the 2018 tax year. These rules apply to part-year residents and nonresidents with Iowa-source income.

Filing requirements for 2018:

Residents and part-year residents: Filing is required if your net income exceeded $9,000 (single) or $13,500 (all other statuses). Higher thresholds apply if you or your spouse were 65 or older on December 31, 2018.
Dependents: You must file if your net income was $5,000 or more and you were claimed as a dependent on another Iowa return.
Nonresidents: Filing is required if Iowa-source income was $1,000 or more.

Special filing situations:

Military personnel with Iowa as their legal residence must file regardless of duty location.
Individuals subject to Iowa's lump-sum tax must file an income tax return.

Key Deadlines for 2018

The standard filing deadline for filing your 2018 Iowa tax return was April 30, 2019. Filing on time is essential to avoid tax penalties and interest.

Deadline details:

If at least 90% of your tax was paid by April 30, 2019, the filing deadline was extended automatically to October 31, 2019.
Farmers and commercial fishers could avoid underpayment penalties by paying their full estimated tax by January 15, 2019, filing by April 30, or filing and paying in complete by March 1, 2019.

Notable Changes for 2018

Several adjustments in 2018 impacted Iowa taxpayers, including changes to deductions, credits, and how the state handled federal tax conformity.

Key updates:

Standard deduction amounts: $2,030 for single filers; $5,000 for married filing jointly; $2,030 each for married filing separately.
Expanded credits and deductions: The first-time homebuyer savings account deduction became available. College Savings Iowa 529 withdrawals could be used for up to $10,000 in K–12 tuition per beneficiary.
Federal non-conformity: Iowa did not adopt most federal changes from the Tax Cuts and Jobs Act, meaning additional Iowa-specific adjustments were required when completing your income tax return.

Forms You’ll Need to File

Correct forms are essential to accurately completing your Iowa state income tax return. Iowa offers multiple schedules and worksheets to handle different taxes, deductions, and credits. Before you start, visit the Iowa Department of Revenue’s website to access all official forms and instructions.

Primary Form

The IA 1040 is the main form used to file an individual income tax return in Iowa. You will need information from your federal and income tax returns to complete it correctly. Ensure your name, address, and status are consistent with federal records, as the IRS uses these details to match your filing history.

Common Schedules and Supporting Forms

Several schedules and worksheets may be required, depending on your filing situation and whether you qualify for a tax credit:

Schedule A: Itemized deductions, including expenses related to a dependent care credit or earned income tax credit.
Schedule B: Reports taxable interest and dividend income.
IA 126: Required if you are a nonresident or part-year resident.
IA 1040V: Payment voucher for any balance due.
IA 4562A/B: Depreciation adjustments.
IA 1065 and IA 1120S: For partnership or S corporation income.
Amended returns: Filed using IA 1040 with the amended box checked.

Keep records for the current year separate from prior years to quickly locate documents if you need to claim a credit or respond to a department request.

Where to Access Forms

Official Iowa tax forms are free on the Iowa Department of Revenue website. You can fill them out online or print blank copies. Many taxpayers use approved e-file service providers to submit returns securely over the internet. If you prefer paper filing, make sure your return is filed in the correct order and mailed to the proper address. For assistance, contact the department directly by phone or in person.

Before You Begin

Gather documents such as your federal tax return, W-2s, 1099s, and any statements that support deductions or credits. If you require additional time, Iowa will grant an extension only if a federal extension has been approved; however, payment is still due by the original deadline. Ensure you also have age, child, and residency details ready, as they may affect determining eligibility for certain credits and refunds.

Step-by-Step Guide to Completing Your Iowa Tax Return

Filing your individual income tax return for Iowa in 2018 requires careful preparation. These steps will help you avoid errors, claim the proper tax credits, and submit your return on time.

Step 1 – Gather Required Documents for Your Individual Income Tax Return

Start by collecting all necessary documents before you begin filling out your return. This preparation will save time and help you avoid missing key information.

You should have all W-2 forms from each employer to ensure that your wage and withholding amounts are reported accurately.
Compile all the 1099 forms you've received for interest, dividends, contract work, and other income sources to accurately account for your taxable income.
Compile detailed business income and expense records to correctly calculate your taxable profit or loss if you are self-employed.
Include statements for retirement distributions and Social Security benefits, as these may affect your taxable income in Iowa.
Keep a complete copy of your federal tax return on hand, since Iowa uses it as the starting point for many calculations.

Step 2 – Choose Your Filing Status Before Calculating Tax Credits

Selecting the correct filing status is essential because it determines your tax rate and tax credit eligibility. Iowa recognizes the following statuses:

Single: This status applies if you are unmarried or legally separated as of December 31, 2018.
Married Filing Jointly: This option allows married couples to combine income and deductions on one return, which may result in lower taxes.
Married Filing Separately on Combined Return: This approach lets couples calculate taxes independently while filing together, which can be beneficial in some instances.
Married Filing Separate Returns: This status is used when spouses choose to file completely separate returns.
Head of Household: This applies if you are unmarried, pay more than half the cost of keeping up a home, and have a qualifying dependent.
Qualifying Widow(er) with Dependent Child: This is available to widowed taxpayers with a dependent child for up to two years after the spouse’s death.

If you are married, consider preparing the return jointly and separately to determine which option has the lowest tax liability.

Step 3 – Report Income and Claim Eligible Tax Credits

Once your filing status is determined, report all income on Lines 1–26 of the IA 1040. Begin with wages, salaries, and tips from your federal return, then adjust for Iowa-specific rules such as untaxed Social Security benefits or municipal bond interest.

Please review your eligibility for the earned income tax credit, which is designed to reduce tax liability for lower—to moderate-income workers who meet certain income thresholds.
Identify and claim other tax credits, including tuition and textbook credits, as well as the child and dependent care credit if you paid qualifying expenses.
Keep detailed documentation for all credits you claim to ensure they can be verified if the Iowa Department of Revenue requests it.

Step 4 – Calculate Adjustments and the Dependent Care Credit

Make Iowa-specific adjustments to income for items such as bonus depreciation, Section 179 deductions, or business interest limitations. Decide whether the standard deduction or itemized deductions provide the greater benefit for your situation.

If you are eligible, claim the dependent care credit to help offset the cost of care for qualifying children or dependents. You can learn more on the Iowa Department of Revenue’s dependent care credit page or the IRS dependent care credit guide.
When calculating deductions and credits, use the correct Iowa forms and follow all instructions to avoid adjustments or delays.

Step 5 – Apply Credits and Finalize Your Individual Income Tax Return

In this final step, apply all remaining tax credits you qualify for, then calculate your total tax liability.

Use the Iowa tax tables or rate schedules to determine the correct amount of tax owed before credits are applied.
Subtract your total credits from the calculated tax to determine whether you are due a refund or have a balance to pay.
Double-check your entries for accuracy, including all identification numbers, addresses, and amounts.
Attach any required schedules or forms to support the credits and deductions claimed, as incomplete filings may delay processing.

Common Mistakes to Avoid

Even experienced taxpayers can make errors when filing their Iowa return. These mistakes can cause processing delays, lead to additional correspondence from the Iowa Department of Revenue, or incur unnecessary penalties and interest.

Forgetting Iowa-specific adjustments can change your taxable income significantly. Many filers copy figures from their federal return without making the required Iowa modifications, such as those for bonus depreciation or municipal bond interest.
Missing nonresident or part-year resident credit calculations can increase your tax bill unnecessarily. If you lived in Iowa for only part of the year or earned income from other states, you may need to complete Schedule IA 126 to calculate the correct tax.
Entering the wrong federal tax deduction amount can lead to errors in your Iowa return. Only the federal income tax paid during the tax year is deductible, not the amount withheld.
Overlooking Iowa-only credits can cause you to pay more than necessary. Credits such as the tuition and textbook credit or the first-time homebuyer savings account deduction are unique to Iowa and may not appear on your federal return.
Misreporting Social Security benefits can affect other calculations. While Iowa does not tax Social Security income, you may still need to report it for informational purposes or when determining eligibility for different deductions and credits.

For more details on avoiding filing errors, visit the Iowa Department of Revenue’s individual income tax guidance page.

How to File Your Iowa Tax Return

Iowa offers both electronic and paper filing options for the 2018 tax year. Choosing the best method depends on your comfort level with technology, filing complexity, and preference for processing speed.

Electronic Filing (E-File)

E-filing is the preferred method for many taxpayers because it is faster, more secure, and reduces the risk of errors.

Refunds can be received faster than those filed on paper. E-filed returns are processed quickly so you will get your refund sooner.
You will receive immediate confirmation that your return was received. The system will also notify you when your return is successfully filed.
You benefit from built-in error checking. Many e-file systems flag missing or inconsistent information before submission, allowing you to correct it instantly.
You can choose from multiple e-file providers. Iowa partners with approved tax software companies and offers free e-filing options for qualifying taxpayers.

Paper Filing

Paper filing is still accepted if you prefer a physical submission or do not have access to e-filing.

Prepare all forms in the correct order before mailing. Start with your check or money order (if paying), followed by the IA 1040V payment voucher, W-2s and 1099s, your IA 1040 return, all required schedules, and a copy of your federal return.
Mail your return to the correct address for processing:
Iowa Income Tax Document Processing
PO Box 9187
Des Moines, IA 50306-9187
If you prefer, use the in-person delivery option. You can drop off your return at the Hoover State Office Building, 1305 E. Walnut St., Des Moines, IA 50319, Monday through Friday, 8:00 a.m. to 4:30 p.m.

How to Pay Your Iowa Taxes

Iowa offers several payment options to make it easier for taxpayers to submit what they owe. Whether you choose an online method or a traditional approach, paying on time helps you avoid penalties and interest.

Online Payment Options

Online payments are the fastest and most convenient way to pay your Iowa tax balance.

You can use EasyPay Iowa, the state’s official online payment system, to pay securely by credit card, debit card, or ACH bank transfer.
The service is available 24 hours a day, seven days a week, and allows you to schedule future payments if needed.
The Iowa Department of Revenue instantly confirms receipt of your payment when you use the online system.

Payment by Check or Money Order

Some taxpayers prefer to pay using paper.

Make your check or money order payable to “Iowa Department of Revenue.”
Include your Social Security number, the tax year (2018), and the type of tax payment on the memo line.
Use the IA 1040V payment voucher and attach it to your check or money order before mailing.
Send your payment and voucher to the Iowa Department of Revenue at the address printed on the IA 1040V form.

Payment Deadlines and Penalties

Timely payment is essential to avoid unnecessary costs.

The interest rate was 7% per year, approximately 0.6% per month, applied to any unpaid balance.
A 5% penalty applies if you fail to file on time and have paid less than 90% of the total tax due by the original due date.
If you cannot pay the full amount, contact the Iowa Department of Revenue promptly to discuss available payment plan options.

Tracking Your Refund or Balance Due

After filing your Iowa tax return, you can check the refund status or confirm whether you still owe a balance. Knowing where to look can help you track updates and avoid delays.

Where’s My Refund Tool

The Iowa Department of Revenue provides an online refund tracking service for taxpayers.

Visit the Where’s My Refund page on the Iowa Department of Revenue’s website to check your payment status.
You can also call 1-800-367-3388 if you are in Iowa or 515-281-3114 if you are calling from outside the state.
To ensure accurate results, have your Social Security number, the tax year, and refund amount ready.

Processing Timeframes

Refund and balance processing times vary based on the filing method and the complexity of your return.

E-filed returns are usually processed within 2 to 3 weeks, while paper returns may take 6 to 8 weeks.
Complex returns or those requiring manual review may take longer to process.
Delays can occur if information is missing, incorrect calculations are made, or incomplete supporting documentation is provided.

Final Filing Checklist

Review the following items before you submit your Iowa tax return to ensure accuracy and avoid delays. Organizing your documents and confirming details now can prevent problems later.

Personal and Filing Information

Confirm that your name, Social Security number, and filing status are correct.
Verify that your mailing address is accurate so any correspondence or refund reaches you without delay.

Forms and Attachments

Ensure all required forms, including your IA 1040, are completed in full.
Attach all W-2s, 1099s, and other income statements if filing a paper return.
Include any necessary schedules or credit forms supporting deductions or tax credits you claim.

Payment and Signatures

Double-check your payment method and amount if you owe taxes.
If paying by check or money order, make it payable to “Iowa Department of Revenue” and include the IA 1040V voucher.
Ensure the return is signed and dated; both spouses must sign if filing jointly.

Supporting Documents

Attach a copy of your federal return if required.
Confirm that all Iowa-specific adjustments or credits are calculated correctly and documented.
Keep copies of your full return, supporting schedules, and payment confirmation for at least three years.

Frequently Asked Questions (FAQs)

What if I missed the deadline for April 30, 2019?

If you missed the Iowa filing deadline, please submit your return at your earliest convenience to minimize penalties and interest. Interest accrues from the original due date until the balance is fully paid. Filing promptly and addressing issues also reduces the risk of additional enforcement actions. Contact the Iowa Department of Revenue to learn if you qualify for penalty relief due to reasonable cause.

Can I e-file my Iowa return for free?

Iowa offers free e-filing options through approved providers for taxpayers with certain income, age, or filing status requirements. These programs help you submit your return quickly and securely. To confirm your eligibility and select a provider, visit the Iowa Department of Revenue’s website and review the current e-file options available for the 2018 tax year.

What deductions or credits are commonly missed?

Commonly missed deductions and credits include federal income tax paid during the year, Iowa-specific depreciation adjustments, College Savings Iowa contributions, and the child and dependent care credit. Reviewing federal and state options before filing can help you claim all eligible tax benefits. Keeping detailed records of your expenses ensures you can verify each claim if requested by the Department of Revenue.

How do I request an extension for my Iowa tax return?

Iowa to Iowa grants an automatic extension if you have an approved federal extension. However, this extension applies only to filing, not payment. You must pay at least 90% of your total tax due by the original deadline to avoid penalties. Visit the Iowa Department of Revenue’s website for instructions on making payments and ensuring your extension is correctly recorded for the 2018 return.

Can I file jointly if my spouse moved mid-year?

Yes. Iowa allows joint filing regardless of when a spouse moved during the year. If one spouse were a nonresident or part-year resident, you may need to properly complete Schedule IA 126 to allocate income between Iowa and other states. This ensures accurate tax calculation and may qualify you for a nonresident credit, reducing the amount of Iowa tax you owe.