Iowa extends Individual income tax return deadline

(The Center Square) – Iowa taxpayers now have until June 1, rather than April 30, to file and pay their 2020 1040 individual income tax returns and first quarter estimated income tax payments.

The Iowa Department of Revenue announced the change March 29 following Director Kraig Paulsen’s signing an order. The order said the department made the changes “to ensure the efficient administration of tax laws” following Gov. Kim Reynolds’ several extensions of the Proclamation of Disaster Emergency following the outbreak of COVID-19, most recently on March 5.

“Paulsen said the state’s economy is showing good strength and the filing extension is an appropriate step to help Iowans whose lives have been disrupted by the pandemic,” the announcement of the changes said.

Interest on any unpaid taxes will be due starting June 2. The order does not include business filers and other tax types for individuals.

The department also announced that since federal legislation has excluded the first $10,200 of unemployment compensation income from taxation for qualifying taxpayers, “certain unemployment compensation will not be included in Iowa income.

“Because the federal legislation was enacted subsequent to many taxpayers filing their returns, taxpayers were unable to take advantage of this change,” the announcement stated. “As a result and to assist these taxpayers, the Department will begin making unemployment compensation related automatic adjustments. The adjustment process may take up to 90 days due to cross-checking these amounts against 1099s and validating eligibility to ensure accuracy and eliminate fraud.”

Iowa taxpayers whose only adjustment is on unemployment compensation do not need to file an amended tax return. Taxpayers filing an original 2020 individual income tax return should report the unemployment compensation exclusion amount on Form IA 1040, line 14, using a code of M.

To check the status of state income tax refunds, visit the department’s “Where’s my Refund” web page. More information on any changes to deadlines and taxes related to the pandemic is available at the department’s COVID-19 FAQs web page. Taxpayers and tax professionals who need assistance can contact the Department at [email protected] or call the taxpayer services at 515-281-3114 or 1-800-367-3388.

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