New laws for 2015 Social Security state tax will go away for seniors By Erin Murphy, Gazette-Lee Des Moines Bureau DES MOINES - No longer will Iowa seniors pay state taxes on their Social Security income. For eight years the state gradually has been phasing out its tax on Social Security benefits. Starting in 2015, the tax is eliminated. Iowa seniors will see the effect when they file their taxes for 2014. It is one of a handful of key measures and new laws that go into effect on Jan. 1. The state Social Security income tax phase out was signed into law in 2006 as part of a $118 million tax cut. It was negotiated by then-Gov. Tom Vilsack and a split-control Legislature. We have a responsibility to our seniors to ensure that they can live out their years with dignity and in economic security, Vilsack said when the bill was signed into law. By signing this legislation, we take further steps to continue our work on behalf of older Iowans and improve their independence and quality of life. Starting the ensuing year, the portion of Social Security income subject to state taxes gradually decreased until it hit zero in the 2014 tax year. State Rep. Tom Sands, R-Wapello, said at the eight-year phase out seemed like a long time. But here it is now, Sands said. It was absolutely the right thing to do because Iowa should not be taxing seniors for their Social Security income. State officials and supporters of the legislation said at the time it was passed that the elimination of the state Social Security income tax could save Iowa seniors between $200 and $700 per year and could affect roughly 140,000
Posted on: Mon, 29 Dec 2014 17:59:31 +0000
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