Who can apply
You must qualify for the federal EITC. Check the federal rules for the tax year you are filing rather than using a current-year estimate for an older return.
What help is available
For tax year 2025, the state credit is 15% of the federal EITC. Part-year residents and nonresidents adjust it using the Iowa income percentage on IA 126.
Documents to prepare
Keep the federal return and EITC calculation, wage records, and any IA 126 used to allocate Iowa income. Keep dependent and filing-status records with the return.
How to get started
Calculate federal EITC first. Use Iowa’s instructions for the same tax year.
For a 2025 return, calculate the Iowa credit and enter it on line 25. Follow the special instructions if filing only to receive EITC under the low-income exemption.
After applying
Save both returns and supporting calculations. If Revenue asks for records, use the channel and deadline in its notice.
Website screenshots
These images show the pages captured in August 2026. Website screens and rules may have changed.
Common questions
Is this a monthly benefit?
No. It is claimed through an Iowa tax return.
Do I have to qualify for federal EITC?
Yes.
Is the 2025 credit refundable?
Yes, according to Iowa’s 2025 instructions.
What if I lived in Iowa for only part of the year?
Use the IA 126 adjustment in the state instructions.
Sources and review
Application and program details: 2025 Iowa EITC instructions.
Historical screenshots and background: USA Assistance. Screenshots may show an earlier application interface.
Historical screenshots: source reference.