Are pension benefits taxable in Iowa?

Yes, pension benefits are generally taxable in Iowa. The state follows the same tax treatment as the federal government for retirement income. Iowa law requires individuals to report all income received during the tax year, including pension benefits. This includes pension payments from private and public sector pension plans, as well as annuity payments and distributions from tax-qualified retirement plans. However, there are certain exclusions or deductions available for pension income in specific situations, such as certain military retirement pay or railroad retirement benefits. It is advisable to consult the Iowa Department of Revenue or a tax professional for specific guidance on the taxability of pensions in Iowa and to ensure accurate reporting of taxable income.