The Iowa Tuition and Textbook Credit is available to taxpayers who have one or more dependents receiving private instruction in Iowa (as defined in Iowa Code section 422.12) or attending kindergarten through 12th grade in an accredited Iowa school. An accredited school must be not operated for profit and must adhere to the provisions of the U.S. Civil Rights Act of 1964, as defined under Iowa Code section 256.11.
Eligibility and Credit Amount
- Taxpayers may claim a credit for each dependent for amounts paid for tuition and textbooks.
- The credit is equal to 25% of the first $2,000 paid per dependent for tuition and textbooks.
- Purchases made from Educational Savings Account funds are not eligible for this credit.
- A nonrefundable tax credit will reduce your tax liability. This credit may reduce your tax liability down to zero, but it will never generate a refund.
Special Rules for Married Filing Separately
- This credit must be taken by the spouse claiming the dependent. Any unused part of this credit cannot be used by the other spouse.
- In the case of divorced or separated parents, only the spouse claiming the dependent can claim the amounts paid by that spouse for that dependent’s tuition and textbooks.
Nonresidents and Part-Year Residents
- Nonresidents and part-year residents may claim the credit; however, the credit must be adjusted based on Iowa instructions for nonresident and part-year resident taxpayers using the applicable allocation rules provided with Form IA 1040 and related instructions.
Source:
Form IA 1040
Disclaimer: Always verify eligibility and requirements with the official Iowa Department of Revenue forms and instructions. This information is based on publicly available tax documents and may not reflect individual circumstances. For complex situations, consult a CPA or tax professional.