Tolly
Level 3
02-03-2024
03:36 PM
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Iowa starts with Federal taxable income which is already reduced by the education deduction. Then on schedule sch 1 as an adjustment to federal taxable income the education deduction is taken again. What ever you put in for your federal deduction is doubled on Iowa up to the Iowa $500 limit.
sfoster
Level 2
02-05-2024
09:43 PM
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I noticed that too. I added another adjustment to the Iowa return called "Other federal adjustment from Schedule 1" and added back the $300 from the Federal return. In the end the net is the additional $200 that Iowa allows.
Not sure it's the right thing to do, but it adds up.
Tolly
Level 3
02-06-2024
08:44 AM
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Yeah, I did the same thing. They need to get it fixed though
