When Iowa gives you back: Iowa Tax Refund

How to Get Your Iowa Tax Refund in 2023

Introduction

If you paid more state income tax than you owed in Iowa, you may be eligible for a tax refund. A tax refund is the difference between the amount of tax you paid and the amount of tax you owe. The Iowa Department of Revenue calculates your refund based on your income, deductions, credits, and tax rate.

In 2022, the average refund amount for Iowa taxpayers was $2,537, according to GoBankingRates.com. The filing deadline for 2023 is April 30, 2024. You can choose to receive your refund by direct deposit, paper check, or debit card. Direct deposit is the fastest and most secure way to get your refund.

Eligibility

To qualify for a tax refund in Iowa, you must meet certain criteria, such as:

• Filing a state income tax return for 2023 by the due date or within three years from the due date.
• Having a positive balance of tax paid after subtracting your tax liability and any penalties or interest.
• Claiming any deductions or credits that reduce your taxable income or tax liability, such as the standard deduction, itemized deductions, personal exemptions, child and dependent care credit, earned income credit, etc.

Some special situations that may affect your eligibility for a refund include:

• Military service: If you are a member of the armed forces who served in a combat zone or qualified hazardous duty area, you may exclude some or all of your military pay from Iowa income tax.
• Disability: If you are permanently and totally disabled, you may qualify for a higher standard deduction or a disability income exclusion.
• Disaster relief: If you suffered a casualty loss due to a federally declared disaster in Iowa, you may deduct the unreimbursed portion of your loss from your income.

How to file

You can file your state income tax return and request your refund in Iowa either online or by mail. The online option is faster, easier, and more accurate than the paper option. You can use the following methods to file online:

• eFile: You can use an authorized eFile provider to prepare and submit your return electronically. You can find a list of providers on the Iowa Department of Revenue website.
• Free File: You can use a free online software program to prepare and submit your return electronically if your adjusted gross income is $72,000 or less. You can find a list of Free File providers on the Iowa Department of Revenue website.
• Fillable Forms: You can use an online version of the paper forms to fill out and submit your return electronically. You can access the fillable forms on the Iowa Department of Revenue website.

If you prefer to file by mail, you can download and print the paper forms from the Iowa Department of Revenue website. You will need to complete Form IA 1040 (Individual Income Tax Return) and any schedules or attachments that apply to your situation. You will also need to include copies of your federal return and any supporting documents. You can mail your return and payment (if any) to:

Iowa Income Tax – Document Processing
P.O. Box 9187
Des Moines IA 50306-9187

Some common errors or tips to avoid them when filing your return are:

• Using the correct tax year and tax rate. In 2023, Iowa changed its individual income tax rates and brackets. You can find the updated rates and brackets on the Iowa Department of Revenue website.
• Using the correct starting point for taxation. In 2023, Iowa adopted federal taxable income as the starting point for state income tax. This means that you can use the same standard deduction or itemized deduction(s) as you did for federal purposes, subject to some Iowa adjustments.
• Claiming the correct deductions and credits. You may be eligible for some deductions or credits that are specific to Iowa, such as the tuition and textbook credit, the volunteer firefighter and EMS credit, the adoption credit, etc. You can find more information on these deductions and credits on the Iowa Department of Revenue website.
• Signing and dating your return. If you are filing a joint return, both spouses must sign and date the return. If you are filing online, you will need to use a personal identification number (PIN) or an electronic signature to sign your return.
• Keeping a copy of your return and supporting documents. You should keep a copy of your return and any documents that prove your income, deductions, credits, and payments for at least three years from the date you filed or the due date, whichever is later.

Where’s My Refund

You can track the progress of your tax refund in Iowa using the online portal or the phone number provided by the Iowa Department of Revenue. You will need to enter your social security number, tax year, and refund amount to check your status.

The online Where’s my Refund tool is available on the Iowa Department of Revenue website. The information is updated in real-time and shows the date your refund was issued.

The phone number is 515-281-3114 or 800-367-3388. The information is updated once a day and provides a general status of your refund.

The expected processing time for your refund depends on how and when you filed your return. Generally, you can expect to receive your refund within:

• 10 days if you filed electronically and chose direct deposit.
• 30 days if you filed electronically and chose paper check or debit card.
• 8 weeks if you filed by mail and chose direct deposit.
• 12 weeks if you filed by mail and chose paper check or debit card.

Some factors that may delay your refund include:

• Filing a paper return or choosing a paper check or debit card.
• Filing an incomplete or incorrect return.
• Filing a return that requires additional review or verification.
• Filing a return that has errors or discrepancies with federal or other state returns.
• Filing a return that is affected by identity theft or fraud.

If you encounter any issues or errors with your refund, you can contact the Iowa Department of Revenue by phone at 515-281-3114 or 800-367-3388, by email at idr@iowa.gov, or by mail at:

Iowa Department of Revenue
Customer Service
P.O. Box 10457
Des Moines IA 50306-0457

How to use or save

Once you receive your tax refund in Iowa, you may wonder how to use it or save it wisely. Here are some ideas for using or saving your refund:

• Paying off debt: You can use your refund to pay off high-interest debt, such as credit cards, payday loans, or car loans. This can help you save money on interest and improve your credit score.
• Investing: You can use your refund to invest in your future, such as saving for retirement, college, or a home. You can choose from various investment options, such as an IRA, a 529 plan, or a CD. You may also qualify for some tax benefits depending on the type of investment.
• Donating: You can use your refund to donate to a cause that matters to you, such as a charity, a church, or a school. You can make a difference in your community and possibly claim a tax deduction for your donation.
• Splurging: You can use your refund to treat yourself or your loved ones to something special, such as such as a vacation, a new gadget, or a spa day. You can enjoy your hard-earned money and reward yourself for your work. However, you should be careful not to overspend or neglect your other financial goals.

This article gives you some tips on how to use or save your tax refund in Iowa. You can choose the option that best suits your needs and preferences. Remember to file your taxes on time and claim all the credits and deductions you are eligible for.