The percentage of Iowans who file their income tax returns electronically has increased by 20% in the past five years. During that same time period, use of Iowa’s "short forms," which cannot be filed electronically, has decreased by 50%. In response to this trend and to continue providing more efficient service, the Iowa Department of Revenue will be discontinuing use of the Iowa individual income tax short form (IA 1040A) and the Iowa corporation income tax short form (IA 1120A) effective for tax year 2013. Taxpayers who may have used these forms in the past will need to use the IA 1040 or IA 1120 beginning with tax year 2013. The Department estimates that 97 % of current IA 1040A users will qualify to eFile for free. Visit the Department’s website for more details at www.iowa.gov/tax.
Also beginning for tax year 2013, individuals who itemize deductions on their Iowa returns will no longer have the option to substitute the Federal Schedule A for the Iowa Schedule A. Previously, taxpayers who used the Federal Schedule A for Iowa purposes may have been required to make adjustments to the amounts on the federal schedule. The Department believes requiring taxpayers to submit Iowa’s Schedule A will reduce the possibility of errors connected with those adjustments. In addition, the Iowa Schedule A includes lines for a proration calculation used by certain married taxpayers. Lines for that calculation are not part of the Federal Schedule A.