Processing of Iowa Individual Income Tax Returns Scheduled to Begin January 30

The federal legislation passed on January 1, 2013 to avert the “fiscal cliff” required revisions to Internal Revenue Service (IRS) forms and processes. As a result, the IRS plans to begin processing 2012 federal income tax returns on January 30. 

Preparation of Iowa individual income tax returns is tied directly to federal returns. Therefore, Iowa will begin to process state returns on the same date the IRS starts to process federal returns. Neither the IRS nor Iowa will process paper or electronic returns prior to January 30, so there is no advantage to sending in a paper return. Taxpayers will receive refunds much faster by waiting to file electronically. 

Eighty-eight percent of Iowans filed electronically last year. Filing electronically, with direct deposit, is the fastest way to receive a refund. Many taxpayers are able to eFile their federal and state tax returns for free. Watch the Iowa Department of Revenue Web site (www.iowa.gov/tax) for more details on electronic filing options. 

The IRS also indicated while the vast majority of taxpayers should be able to start filing returns on January 30, some may not be able to file until late February or into March due to the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits, depreciation of property or general business credits.