Form Ia 1040c - Composite Individual Income Tax Return

Instructions for Composite Iowa Individual Income Tax Return

Election of Composite Filing

TAX RATE SCHEDULE

Composite returns for the 2011 calendar year must be filed by

But

Of Excess

Minimum

Over

Not Over

Tax Rate

Over

April 30, 2012. An automatic 6-month extension for filing is

Income

$1,439

$0.00

(0.36%

$0)

available only if 90% of the tax due is paid by the original due

Filing

$1,439

$2,878

$5.18

(0.72%

$1,439)

date. The Department must be notified in writing before a

Requirement

$2,878

$5,756

$15.54

(2.43%

$2,878)

taxpayer chooses to discontinue filing composite returns.

$2,719

$5,756

$12,951

$85.48

(4.50%

$5,756)

Filing Requirements

$2,484

$12,951

$21,585

$409.26

(6.12%

x $12,951)

Nonresident partners, shareholders, members, or beneficiaries

$2,447

$21,585

$28,780

$937.66

(6.48%

x $21,585)

cannot be included in a composite return if the nonresident

$2,418

$28,780

$43,170

$1,403.90

(6.80%

x $28,780)

does not have more income from Iowa sources than the amount

$2,335

$43,170

$64,755

$2,382.42

(7.92%

x $43,170)

of one standard deduction for a single taxpayer plus an amount

$2,275

$64,755

over

$4,091.95

(8.98%

x $64,755)

of income necessary to create a tax liability at the effective tax

rate on the composite return sufficient to offset one personal

6. Use the tax rate schedule above to figure your tax on

exemption. See minimum filing requirements below under

composite Iowa taxable income. Also listed are the

line 6.

minimum requirements for each tax rate.

In addition, the above individuals should not be included if

7. Partners, shareholders, or members reporting income on

they have incomes from Iowa sources other than from the

the composite return may also be subject to Iowa minimum

partnership or other entity; these individuals are required to

tax. The Iowa alternative minimum tax is imposed on most

file Iowa individual income tax returns.

of the same tax preference and adjustment items treated as

Line Instructions

exclusions as for federal alternative minimum tax

purposes. Please see form IA 6251 to determine if any

1. Each nonresident partner’s, shareholder’s, or member’s

Iowa minimum tax is due, and attach completed form if

Iowa K-1 will show that partner’s, shareholder’s, or

necessary.

member’s income and nonresident modifications that are

apportioned to Iowa. The apportioned amount of each item

9. Personal exemption credits for 2011 for each partner,

of Iowa K-1 income that is a part of federal adjusted gross

shareholder or member is $40.

income and the apportioned modifications of all

10. Enter the total of the nonrefundable credits from the IA

nonresident partners, all nonresident shareholders, and/or

148 Tax Credits Schedule. The IA 148 Tax Credits

all members included in this composite return are to be

Schedule must be attached.

totaled and entered on this line. Nonresidents with other

13. Enter the total amount of 2011 estimated tax payments and

Iowa-source incomes are not to be included on the

any of the prior year’s refund applied to your estimated

IA 1040C.

payments for 2011.

Beneficiaries of a trust do not have an Iowa K-1, only a

Although estimated payments are not required, 2012

federal K-1. Consequently, when nonresident

estimated payments may be made on form IA 1040ES

beneficiaries are included in the filing of a composite

using the partnership’s, limited liability company’s, S

return with Iowa, they must total all income and/or

corporation’s, or trust’s identification number.

capital gain from real property or tangible personal

property located in Iowa and any other business income

14. Enter the total of the refundable credits from the IA 148

attributable to Iowa and enter on this line.

Tax Credits Schedule. The IA 148 Tax Credits Schedule

must be attached.

2. A deduction is allowed in lieu of the deduction for federal

tax paid and is based upon the following schedule:

20. If you do not mail your return by the due date and at least

Amount shown on line 1

Deduction

90% of the correct tax is not paid, you owe an additional

10% of the tax due. If you file your return on time but do

0 -

$49,999 =

No deduction

not pay at least 90% of the correct tax due, you owe an

$50,000 -

$99,999 =

5% of line 1

additional 5% of the tax due.

$100,000 -

$199,999 =

10% of line 1

21. Interest is added at a rate of 0.x% per month beginning on

the due date of the return and accrues each month until

Over

$200,000 =

15% of line 1

payment is made.

3. For 2011 the standard deduction allowed is $1,830.00.

Preparer’s ID Number

Enter preparer’s SSN, FEIN, or PTIN.

41-006b (08/05/11)

Form Ia 1040c - Composite Individual Income Tax Return - 2011 Page 2

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