Is There a Stimulus Check for Iowa Residents in 2024?

With no new Economic Impact Payments issued in the last three years, a lot of people facing financial hardship are looking for information on new stimulus checks for Iowa.

If you need help with food, housing, or healthcare, the federal government has many assistance programs in place. You can also get some relief through Iowa’s tax credits. Read on to learn more about how tax credits can help, eligibility requirements, and how much you can get.

Is There a Stimulus Check in 2024 for Iowa?

There are no new stimulus checks for Iowa residents in 2024. President Biden or Congress have no plans for issuing additional coronavirus pandemic-related payments through the American Rescue Plan Act or the CARES Act, regardless of what you may have read on social media about a fourth round of stimulus checks from the IRS.

Iowa Stimulus Check 2024

For individuals, there are two main state-level tax credits you can claim in Iowa: The Earned Income Tax Credit (EITC) and the Child and Dependent Care Tax Credit (CDCTC). You can also choose to claim the Early Childhood Development Credit instead of CDCTC. Iowa doesn’t have a Child Tax Credit (CTC), but you can still claim the federal credit.

“Tax credits can be refundable or non-refundable. You won’t get a check for the excess amount after your taxes owed are reduced to zero with a non-refundable credit,” explains Brad Reichert, founder and managing director of Reichert Asset Management LLC. 

“Non-refundable credits will only lower your taxes due to zero, but no further.  With a refundable credit, you can get a check for any surplus left over once your taxes are reduced to zero,” Reichert shares. 

How do Iowa Stimulus Checks Work?

Federal and state governments design tax credits to provide some relief to low and moderate-income taxpayers. While these are not stimulus programs for seniors or low-income families, they can lower your tax bill on a dollar-for-dollar basis.

You won’t get a direct Iowa stimulus check from the government. However, if the tax credit is refundable, you may get a larger tax refund if there’s any surplus credit left once your taxes owed are reduced to zero.

Who Is Eligible for Iowa’s Stimulus Checks?

The Iowa Earned Income Tax Credit is only available to those who qualify for the federal EITC. You must meet these eligibility requirements to qualify for the federal credit:

• You must have earned income during the tax year.
• Your investment income must not exceed $11,000 in 2023.
• You must have a valid Social Security number.
• You must have been a resident of the United States for all of 2023.
• You must not file IRS Form 2555, Foreign Earned Income.

You must also meet these adjusted gross income (AGI) and earned income limits specified by the Internal Revenue Service (IRS):

• No qualifying children: $17,640 (single, head of household, widowed) $24,210 (married filing jointly)
• 1 qualifying child: $46,560 (single, head of household, widowed) $53,120 (married filing jointly)
• 2 qualifying children: $52,918 (single, head of household, widowed) $59,478 (married filing jointly)
• 3 or more qualifying children: $56,838 (single, head of household, widowed) $63,398 (married filing jointly)

Iowa residents can choose to claim the Child and Dependent Care Tax Credit (CDCTC) or the Early Childhood Development Tax Credit (ECDTC).

Here’s how to qualify for Iowa CDCTC:

• Your taxable income should be less than $90,000.
• You must qualify for and claim the federal CDCTC.
• You may not claim the credit if you’re married and filing separately.
• If you’re married and filing jointly, qualification will depend on your and your spouse’s combined taxable income.

Here are the eligibility requirements for the Early Childhood Development Tax Credit:

• The credit can be claimed by the spouse claiming the dependent.
• The income of the taxpayer claiming the credit should be less than $90,000.
• Credit can only be claimed for eligible expenses, such as services provided by a preschool, child development and educational activities, instruction materials, and books.

How Much Do You Receive and When

Iowa EITC is fully refundable and is 15% of the federal credit. The Early Childhood Development Credit is 25% of the first $1,000 of eligible expenses in 2023.

The Iowa CDCTC is fully refundable and is calculated at rates of 30% to 75% of the federal CDCTC, depending on your income. Here are the rates you can claim for different income levels:

• Less than $10,000: 75% of federal credit
• $10,000 to $19,999: 65% of federal credit
• $20,000 to $24,999: 55% of federal credit
• $25,000 to $34,999: 50% of federal credit
• $35,000 to $39,999: 40% of federal credit
• $40,000 to $89,999: 30% of federal credit
• $90,000 and above: Not eligible

How To Track the Status of Your Iowa Stimulus Checks

You can’t track the status of your Iowa stimulus check since you won’t receive a separate check from the government even if you qualify for and claim tax credits. These credits are applied to your state income tax due as a direct dollar-for-dollar offset, and if you qualify for a tax refund, you’ll get it through direct deposit in your bank account or as a paper check.

The Iowa Department of Revenue’s anticipated timeframe for processing tax refunds is 30 days. You can check the status of your refund online with the “Where’s My Refund?” tool.

How To Apply for Iowa’s Stimulus Checks

You’ll need to file your state income tax return to claim these tax credits. Use tax preparation software to file your federal and state income taxes, or have a tax professional file them for you.

The IRS offers programs like VITA, TCE, and Free File for low-income filers to help file taxes for free.

Apply for Financial Assistance in Iowa

While there are no stimulus checks for Iowa residents in 2024, you may be able to get some tax relief through federal and state credits. Keep in mind that the federal and local governments have resources and financial assistance programs available to help those in need, such as food aid, subsidized housing, and healthcare assistance.

If you’re facing financial difficulties due to debt, consider enrolling in an Iowa debt relief program like debt settlement or credit counseling to pay off your debt.

Visit our Minnesota stimulus checks, Nebraska stimulus checks, and Wisconsin stimulus checks pages for information about programs you can apply for in those states.