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tjr613
New Member

Where do I enter the Teacher Retention Payment for Iowa?

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...
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1 Reply
ThomasM125
Expert Alumni

Where do I enter the Teacher Retention Payment for Iowa?

You will enter your retention bonus as a negative Other Income number. When you go through your Iowa state return, look for a page that says Do You Have Other Income? Answer Yes to that question and you will see a screen entitled Enter your other Iowa Income and the bottom option will be Premium Pay Retention Bonus. Enter your retention bonus there as a negative number.

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