State credits
Iowa earned income tax credit
Iowa adds 15% of the federal credit on line 25 of its return, refundable, with the federal rules for who qualifies.
Iowa and federal earned income credit calculator
Credits for tax year 2025, head of household, 1 qualifying child
$6,677
| Federal EITC | $4,328 |
| Iowa Earned Income Tax Credit | $649 |
| Child tax credit, lowers your tax | $0 |
| Additional child tax credit, refundable | $1,700 |
Plateau: the federal credit is at its maximum; federal maximum $4,328, nothing from $50,434.
$500 of child tax credit is lost: it exceeds your federal tax and the refundable cap.
Rules of the Iowa creditThe Iowa Earned Income Tax Credit equals 15% of the federal credit and is refundable. It is entered on line 25 of the IA 1040 and follows the federal eligibility rules, so a household that qualifies for the federal credit qualifies in Iowa, for 15% of the same amount. With one child at the 2025 federal plateau of $4,328, it adds $649; with two children at $7,152, $1,073; with three or more at $8,046, $1,207. A worker without a qualifying child can receive up to $97. Iowa has been lowering its income tax rates to a single rate, which does not change this credit, since a refundable credit is paid whatever the tax. The Iowa Department of Revenue explains the credit in the expanded instructions for the IA 1040. For 2026, the rate is still 15%.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
The Iowa credit in one table
| Name | Iowa Earned Income Tax Credit |
| Form | IA 1040, line 25 |
| Administered by | Iowa Department of Revenue |
| Tax year 2025 | 15% of the federal credit |
| Tax year 2026 | 15% of the federal credit |
| Refundable | refundable |
| ITIN filers | not accepted (same SSN rule as federal) |
| Worker without a qualifying child | federal age rule, 25 to 64 |
Iowa and part-year residents
A part-year resident or nonresident takes a share of the credit in proportion to Iowa income, as the expanded instructions explain. The calculator above assumes a full-year resident.
Iowa credit by income, tax year 2025
| Earned income | No child | 1 child | 2 children | 3 or more |
|---|---|---|---|---|
| $5,000 | $58 | $256 | $302 | $339 |
| $10,000 | $97 | $511 | $602 | $677 |
| $15,000 | $47 | $649 | $902 | $1,014 |
| $20,000 | $0 | $649 | $1,073 | $1,207 |
| $25,000 | $0 | $609 | $1,020 | $1,154 |
| $30,000 | $0 | $489 | $862 | $996 |
| $40,000 | $0 | $249 | $546 | $680 |
| $50,000 | $0 | $10 | $230 | $364 |
| $60,000 | $0 | $0 | $0 | $48 |