My spouse is an educator in Iowa who received the $1,000 retention bonus. The school district sent a letter with their W-2 that says they processed the bonus before Senate File 2367 was passed, which waives State Tax. The letter says "The State of Iowa has included an additional line on the Iowa Form 1040 to reduce this retention bonus from your annual income." I cannot see where to input this in TurboTax.
More details about the retention bonus can be found in Section AA.4 in the following link:
https://tax.iowa.gov/expanded-instructions/other-income-bonus-depreciation-section-179-adjustment-20...
