• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Sunday, January 29, 2023
The Iowa Torch
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
No Result
View All Result
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
The Iowa Torch
The Iowa Torch
No Result
View All Result
Home State Government

Iowa Extends Deadline for First-Time Homebuyer Savings and Educational Savings Plan

Owners of Iowa Educational Savings (529) Plans and First-Time Homebuyer Savings Accounts now have until May 30 to claim deductions for the 2020 tax year.

Mary StrokabyMary Stroka
May 6, 2021
in State Government
Reading Time: 2 mins read
Hendrickson: Time to Eliminate Barriers to Tax Relief

Photo by Nataliya Vaitkevich from Pexels.

(The Center Square) – Owners of Iowa Educational Savings (529) Plans and First-Time Homebuyer Savings Accounts now have until May 30 to take action on their respective accounts for the 2020 tax year.

RELATED POSTS

Bird joins lawsuit against Biden Administration’s Parole Action

Reynolds signs bill creating education savings accounts

School choice bill advances through legislative committees

These changes took effect through the new public health disaster emergency proclamation Gov. Kim Reynolds signed on April 30.

Prior to the extension, taxpayers could deduct qualifying contributions they made to their Iowa Educational Savings (529) Plans between Jan. 1 and April 30 on their 2020 Iowa income tax returns up until April 30, the typical annual deadline, rather than having to wait until they file 2021’s returns, the Iowa Department of Revenue announced May 4.

ADVERTISEMENT

“Contributions to College Savings Iowa or the IAdvisor 529 Plan that were previously deducted for Iowa income tax purposes must be included as Iowa income when distributed, unless they are used to pay for qualified education expenses,” the department said on a webpage regarding the 529 plan.

Taxpayers can withdraw up to $10,000 per dependent to pay for K-12 tuition expenses tax-free at an accredited Iowa school, according to the department.

Taxpayers who opened interest-bearing savings accounts in 2020 who want to participate in the first-time homebuyer savings account program typically have until April 30, 2021, to file an Account Holder and Designated Beneficiary Form 41-162, but they now have until May 30.

The savings accounts allow individuals, including current homeowners, to make tax-deductible contributions into an account that a designated person can use for expenses for purchasing a first home, such as a down payment and closing costs, according to the department’s webpage on first-time homebuyers savings accounts.

The department stipulates if the money is used for a “nonqualified reason, or if the money is not used to purchase a home within 10 years of the time the account was first opened, any money that was previously deducted but was not used for a qualifying purchase, plus 10%, is added to the account holder’s taxable income for income tax purposes.”

Exceptions to the 10% penalty include the death of the account holder.

Iowa individual income tax returns are still due June 1. Iowa Department of Revenue Director Kraig Paulsen announced that deadline in an order March 29.

Tags: First-Time Homebuyer Savings AccountsIowa Department of RevenueIowa Educational Savings PlanKim ReynoldsKraig Paulsen
ShareTweetShare
ADVERTISEMENT
Previous Post

Iowa Senate Sends COVID-19 Vaccine Passport Ban Bill to Governor’s Desk

Next Post

Hinson Says She Backs Stefanik for House GOP Conference Chair

Mary Stroka

Mary Stroka

Mary Stoka is a freelance writer, editor, journalist, and public relations professional who lives in Chicago, Ill.

Related Posts

Reynolds signs bill creating education savings accounts
State Government

Reynolds signs bill creating education savings accounts

January 24, 2023
Study: $1,702 Collected in Property Taxes Per Capita in Iowa
Opinion

Hendrickson & Williams: To achieve meaningful property tax relief, right size government 

January 24, 2023
Reynolds Signs Charter School Expansion Bill Into Law
Opinion

Reynolds: An open letter to Iowans about school choice

January 23, 2023
The Iowa House Education Reform Committee debating HSB 1 on January 18, 2023.
State Government

School choice bill advances through legislative committees

January 19, 2023
Iowa National Guard’s top general announces retirement
State Government

Iowa National Guard’s top general announces retirement

January 19, 2023
Holt: Education, Free Speech & Justice for All
Opinion

Holt: It’s time to empower parents through school choice

January 12, 2023
Next Post

Hinson Says She Backs Stefanik for House GOP Conference Chair

Iowa Supreme Court Approves Grants to Support Civil Legal Services for Low-Income Iowans

Sign-Up For Our Daily Updates

Get The Iowa Torch right in your inbox!

Please wait...

Thank you for signing up!

Recommended Articles

Hendrickson: Reynolds Outlines a Bold, Conservative, and Pro-Growth Agenda

Reynolds announces $20M in grants for downtown housing projects

May 6, 2022

Iowa Republicans and Iowa Democrats Release Precinct Caucus Locations

February 1, 2022

Iowa Ranks 9th Nationally for Fiscal Health

September 29, 2021

Popular Stories

  • Reynolds signs bill creating education savings accounts

    Reynolds signs bill creating education savings accounts

    0 shares
    Share 0 Tweet 0
  • Miller-Meeks: Improving American healthcare

    0 shares
    Share 0 Tweet 0
  • Local Rap Artist’s Non-Profit Receives Grant to Help At-Risk Youth Graduate

    0 shares
    Share 0 Tweet 0
  • Iowa House Republicans outline priorities with first 13 bills

    0 shares
    Share 0 Tweet 0
  • Iowa Senate Passes Governor’s School Choice Bill

    0 shares
    Share 0 Tweet 0

The Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans

Categories

  • Education
  • Federal Government
  • Iowa History
  • Local Government
  • News
  • Opinion
  • Politics
  • State Government
  • Uncategorized
  • Uncategorized

Newsletter

Please wait...

Thank you for signing up!

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.

No Result
View All Result
  • Home
  • About Us
  • Advertise
  • Contact Us
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.