Turbo Tax is saying I am a "Low Income Exempt" for the IA state income taxes, when my income is above the limit per IA Dept of Revenue web page. Did I impute something wrong?
Iowa taxes start with federal income and then require various adjustments for the Iowa tax return. The end result of these adjustments is “Iowa Net Income” on line 26 of the Iowa 1040.
If a taxpayer’s net income is below certain thresholds, they might not need to file a tax return.
Those thresholds are:
Even if you owe no tax, you must file an income tax return to get a refund of any refundable Iowa credits or any Iowa tax withheld.
Please see this Iowa Dept. of Revenue website for further information: Qualifications for Exemption from Tax