Bill Text: IA SF22 | 2019-2020 | 88th 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) 2019-01-15 - Subcommittee: Chapman, Dotzler, and R. Smith. S.J. 91. [SF22 Detail]
Download: Iowa-2019-SF22-Introduced.html
Senate
File
22
-
Introduced
SENATE
FILE
22
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
2019,
is
1
amended
to
read
as
follows:
2
31.
For
a
person
who
is
disabled,
or
is
fifty-five
years
of
3
age
or
older,
or
is
the
surviving
spouse
of
an
individual
or
4
a
survivor
having
an
insurable
interest
in
an
individual
who
5
would
have
qualified
for
the
exemption
under
this
subsection
6
for
the
tax
year,
subtract,
to
the
extent
included,
the
7
total
amount
of
a
governmental
or
other
pension
or
retirement
8
pay,
including,
but
not
limited
to,
defined
benefit
or
9
defined
contribution
plans,
annuities,
individual
retirement
10
accounts,
plans
maintained
or
contributed
to
by
an
employer,
11
or
maintained
or
contributed
to
by
a
self-employed
person
as
12
an
employer,
and
deferred
compensation
plans
or
any
earnings
13
attributable
to
the
deferred
compensation
plans,
up
to
a
14
maximum
of
six
twelve
thousand
dollars
for
a
person,
other
than
15
a
husband
or
wife,
who
files
a
separate
state
income
tax
return
16
and
up
to
a
maximum
of
twelve
twenty-four
thousand
dollars
for
17
a
husband
and
wife
who
file
a
joint
state
income
tax
return.
18
However,
a
surviving
spouse
who
is
not
disabled
or
fifty-five
19
years
of
age
or
older
can
only
exclude
the
amount
of
pension
or
20
retirement
pay
received
as
a
result
of
the
death
of
the
other
21
spouse.
A
husband
and
wife
filing
separate
state
income
tax
22
returns
or
separately
on
a
combined
state
return
are
allowed
23
a
combined
maximum
exclusion
under
this
subsection
of
up
to
24
twelve
twenty-four
thousand
dollars.
The
twelve
twenty-four
25
thousand
dollar
exclusion
shall
be
allocated
to
the
husband
or
26
wife
in
the
proportion
that
each
spouse’s
respective
pension
27
and
retirement
pay
received
bears
to
total
combined
pension
and
28
retirement
pay
received.
29
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
30
retroactively
to
January
1,
2019,
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.
35
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This
bill
relates
to
the
exclusion
of
certain
retirement
1
income
from
the
calculation
of
net
income.
2
Under
the
bill,
a
taxpayer
who
is
disabled,
who
is
at
least
3
55
years
of
age,
or
who
is
the
surviving
spouse
or
other
4
specified
survivor
of
that
qualifying
taxpayer
may
exclude
a
5
maximum
of
$12,000
of
other
retirement
income
($24,000
for
6
married
couples).
7
Currently,
a
taxpayer
who
is
disabled,
who
is
at
least
55
8
years
of
age,
or
who
is
the
surviving
spouse
or
other
specified
9
survivor
of
that
qualifying
taxpayer
may
exclude
a
maximum
10
of
$6,000
of
other
retirement
income
($12,000
for
married
11
couples).
12
The
bill
does
not
affect
the
current
exclusion
of
military
13
retirement
income.
14
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