#Income tax brackets 2020 iowa code

Indexation is meant to protect taxpayers from paying higher income taxes solely as a result of inflation. Summarized below is a partial list of individual income tax law changes which are effective beginning in tax year 2023. These tax features are determined each year by applying inflation factors to, or “indexing,” the previous year’s amounts. Iowa law provides for the indexation of individual income tax brackets and standard deduction amounts.

#Income tax brackets 2020 iowa code

Iowa Code section 422.5 details indexation of Iowa income tax brackets. Indexation of the standard deductions is covered in Iowa Code sections 422.9 and 422.21. Tax year 2020 income tax brackets are shown in the table below. $2,110 for married taxpayers filing separately.The tax year 2020 individual income tax standard deductions are: Individual Income Tax Standard Deductions The daily rate for 2020 is the annual rate divided by 366. The monthly rate is the annual rate divided by 12, rounded to the nearest one-tenth of a percentage point. Adding two percentage points results in the annual Department rate of 7.0 percent. Rounded to the nearest whole percent, this average is 5.0 percent. The prime rate averaged 5.40 percent over the past twelve months. Iowa state income tax rate table for the 2022 - 2023 filing season has nine income tax brackets with IA tax rates of 0.33, 0.67, 2.25, 4.14, 5.63, 5.96, 6.25, 7.44 and 8.53 for Single, Married Filing Jointly, Married Filing Separately, and Head of Household statuses. Iowa law requires that this average be rounded to the nearest whole percent and two percentage points to be added to it. The annual rate is based on the average monthly prime rate during the preceding twelve month period, October through September. Iowa Code Section 421.7 specifies the procedures for calculating the Department’s annual and monthly interest rates. Starting January 1, 2020, the interest rate for taxpayers with overdue payments will be: Des Moines, Iowa – The Iowa Department of Revenue has finalized the 2020 interest rate, individual income tax brackets, and individual income tax standard deduction amounts for the 2020 tax year (applicable for taxes due in 2021).