Form 41-006b - Instructions For Composite Iowa Individual Income Tax Return
ADVERTISEMENT
1INSTRUCTIONS FOR COMPOSITE IOWA INDIVIDUAL INCOME TAX RETURN
ELECTION OF COMPOSITE FILING
6. Use the tax rate schedule below to figure your tax on
composite Iowa taxable income. Also listed are the
An entity electing to file a composite return must file the
minimum requirements for each tax rate.
return by the end of the extended filing period or by
October 31, 2000, for calendar-year filers. Thereafter, the
TAX RATE SCHEDULE
Minimum
But
Of Excess
taxpayer shall continue to file composite returns until the
Income
Over
Not Over
Tax Rate
Over
taxpayer notifies the department in writing that the
Filing
$
0
$ 1,148
0.00
+
.36%
x $
0
taxpayer wishes to discontinue the filing of composite
Requirement
1,148
2,296
4.13
+
.72%
x
1,148
returns.
2,296
4,592
12.40
+
2.43%
x
2,296
FILING REQUIREMENTS
2,349
4,592
10,332
68.19
+
4.50%
x
4,592
N o n r e s i d e n t p a r t n e r s , s h a r e h o l d e r s , m e m b e r s , o r
2,114
10,332
17,220
326.49
+
6.12%
x
10,332
beneficiaries shall not be included in a composite return
2,077
17,220
22,960
748.04
+
6.48%
x
17,220
if the nonresident does not have more income from Iowa
2,048
22,960
34,440
1,119.99
+
6.80%
x
22,960
sources than the amount of one standard deduction for a
1,965
34,440
51,660
1,900.63
+
7.92%
x
34,440
single taxpayer plus an amount of income necessary to
1,905
51,660
over
3,264.45
+
8.98%
x
51,660
create a tax liability at the effective tax rate on the
c o m p o s i t e r e t u r n s u f f i c i e n t t o o f f s e t o n e p e r s o n a l
7. Partners, shareholders, or members reporting income
exemption. See minimum filing requirements below under
on the composite return may also be subject to Iowa
line 6.
minimum tax. The Iowa alternative minimum tax is
LINE INSTRUCTIONS
imposed on most of the same tax preference and
1. Each nonresident partner’s, shareholder’s, or member’s
adjustment items treated as exclusions as for Federal
alternative minimum tax purposes. Please see form IA
Iowa K-1 will show that partner’s, shareholder’s, or
6251 to determine if any Iowa minimum tax is due,
member’s income and nonresident modifications that
are apportioned to Iowa. The apportioned amount of
and attach completed form if necessary.
each item of Iowa K- 1 income that is a part of Federal
9. Personal exemption credits for 1999 for each partner,
a d j u s t e d g r o s s i n c o m e a n d t h e a p p o r t i o n e d
shareholder or member is $40.
m o d i f i c a t i o n s o f a l l n o n r e s i d e n t p a r t n e r s , a l l
10. Enter any of these applicable credits: New Jobs,
nonresident shareholders, and/or all members included
Minimum Tax Carry Forward, Enterprise Zone,
in this composite return are to be totaled and entered
Franchise Tax, and Investment Tax.
on this line.
13. Enter the total amount of 1999 estimated tax payments
Beneficiaries of a trust do not have an Iowa K-1, only
along with any of the prior year’s refund which was
a Federal K-1. Consequently, when nonresident
applied to your estimated payments for 1999.
beneficiaries are included in the filing of a composite
Although estimated payments are not required, 2000
return with Iowa, they must total all income and/or
estimated payments may be made on form IA 1040ES
capital gains from real property or tangible personal
using the partnership’s, limited liability company’s, S
property located in Iowa and any other business income
corporation’s, or trust’s identification number.
attributable to Iowa and enter on this line.
14. Enter any applicable credit for the Research Activities
2. A deduction is allowed in lieu of the deduction for
Credit or the Motor Fuel Tax Credit.
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 90% of the correct tax is not paid, you owe an
AMOUNT SHOWN ON LINE 1 DEDUCTION
additional 10% of the tax due. If you file your return
0 -
$49,999 =
No deduction
on time but do not pay at least 90% of the correct tax
$50,000 -
$99,999 =
5% of line 1
due, you owe an additional 5% of the tax due.
$100,000 -
$199,999 =
10% of line 1
21. Interest is added at a rate of 0.8% per month beginning
on the due date of the return and accrues each month
Over
$200,000 =
15% of line 1
until payment is made.
3. For 1999 the standard deduction allowed is the lesser
of $1,460 or the income attributable to Iowa of the
NOTE: Individuals who are eligible for Cow-Calf Refunds
p a rtn er , s hare hold er , or member f iling v ia th is
from form IA132 must file the IA1040 to claim these
composite return.
refunds.
PREPARER’S ID NUMBER
Enter preparer’s SSN, FEIN, or PTIN.
41-006b (10/99)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial