If both you and your spouse have income, its best to file married filing separately as Iowa only has one tax rate schedule, unlike the Federal tax rate schedule where there are four. Splitting your income will lower the amount of tax in Iowa since both your incomes will get the advantage of the lower tax rates. Iowa requires a proration of the Federal tax paid deduction based on each spouses proportional share of the combined income. Here is a link that might help with the calculation.
The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020 taxes.
