Iowa LSA Issues Guidance on Per Diem Tax Treatment for 2025 Filings

The Iowa Legislative Services Agency (LSA) has issued guidance, providing instructions for state representatives regarding the tax treatment of per diem payments, business expense deductions, and filing requirements for the 2025 tax year. The guidance outlines the rules for excluding per diem payments from gross income under Internal Revenue Code Section 162(h) for representatives whose district homes are more than 50 miles from the State Capitol Building. It also addresses the suspension of miscellaneous itemized deductions for travel expenses from 2018 through 2025 under the Tax Cuts and Jobs Act, and the requirement to attach a “Statement of Election of ...