Stories Related to Iowa Lawmakers Say No State Income Tax On Federal Jobless Benefits

DES MOINES — Iowans will not have to pay state income taxes on the temporary federal unemployment compensation they received during the pandemic, under a bill passed unanimously by the Iowa House on Wednesday.Representatives agreed to add the provision to a Senate-passed measure that exempted federal Paycheck Protection Program grants and loans given Iowa businesses after the pandemic arrived in Iowa last March.Democrats sought to also exempt state jobless benefits from Iowa income tax, but that effort failed because of its additional cost.