Form 1120s - Iowa Income Tax Return For S Corporations

$25,000 to $100,000, multiply by 8% and subtract $500

the numerator as follows:

$100,000 to $250,000, multiply by 10% and subtract $2,500.

Accounts receivable interest is to be included in the numerator to the extent

allocable to Iowa.

Over $250,000, multiply by 12% and subtract $7,500.

Other interest, net dividends, capital and ordinary gains, and royalties

Except for estimated and other advance tax payments, and any credit carryforward

from intangibles must be included in the numerator if the commercial domicile

under Iowa Code section 422.33 arising in a taxable year for which the corporation

is in Iowa. All investment income that is business income, including capital

was a C corporation, no credits are allowed against the built-in gains or passive

gains or losses, must be included in the computation of the business activity

investment income tax. Pay online at , or make checks payable

ratio if the investment income is derived from intangible property that has

to Treasurer, State of Iowa.

become an integral part of some business activity occurring regularly in or

Refund Requests

outside of Iowa. See Iowa Rule 54.2(3) for clarification.

If a refund is due because estimated payments exceed the tax due, you must

Capital and ordinary gains or losses, or rent and royalties from real property

request a refund by separate letter. Send to Iowa Department of Revenue, PO

must be included in the numerator if the property is located in Iowa.

Box 10456, Des Moines IA 50306-0456.

For a taxpayer first apportioning income, the inclusion of investment income

Part IV: Business Activity Ratio (BAR)

determined to be business income in the business activity ratio of that year’s

If an S corporation is doing business wholly within Iowa:

initial return will be binding on all subsequent years’ returns. The election to

Skip lines 1-12 and enter 100.00 on line 13.

include business investment income in the business activity ratio can later be

changed only with permission of the Director of the Iowa Department of Revenue.

If the S corporation is doing business both within and without Iowa:

Complete all applicable lines. Dividends are net of special deductions.

Part V: Information from Prior Period Iowa Return

Enter the requested information from the Iowa return for previous tax period.

Business income means income which arises from the S corporation’s unitary

trade or business, a part of which is conducted within Iowa. Business income

Federal S Corporation Return

must be apportioned to Iowa by means of the business activity ratio. Investment

A copy of the federal corporation return, form 1120S, and all other supporting

income may at the taxpayer’s election be included in the computation of the

schedules, (not including the federal K-1) must be attached to this form.

business activity ratio. The taxpayer will have elected whether to include

WHO MUST SIGN THE RETURN

investment income in the computation of the business activity ratio for that and

The corporation return must be signed by the president or other duly authorized

all subsequent years. Consequently, that year and for subsequent years total

officer.

investment income which is determined to be business income will be included in

Instructions for IA 1120S Schedule K-1

Shareholder’s Share of Income, Deductions, & Modifications

PART II: SHAREHOLDER’S PRO RATA SHARE ITEMS:

The Iowa 1120S K-1 shows each shareholder’s share of modifications,

Column (a), lines 1 through 14(f):

all-source income, Iowa apportioned income, and Iowa tax credits. You

Enter the same amounts as shown on the federal K-1. These figures are

must provide complete information for each shareholder in an acceptable

reportable as part of income/loss on your IA 1040.

format. For your convenience, forms IA 1120S and IA 1120S Schedule

Leave Columns (b) & (c) blank for resident shareholders.

K-1 are provided on our Web site.

Column (b), lines 1 through 14(f):

Individual shareholders: When completing your individual IA 1040,

For nonresident shareholders only, enter the S corporation’s single factor

report the column (a) items. In addition, individual nonresident

Iowa Business Activity Ratio (BAR). The BAR in column (b) must be

shareholders report amounts from column (c) on Iowa form IA 126,

applied equally to each line item in column (a); no method of

“Iowa Nonresident and Part-year Resident Credit.” If the S corporation

“separate accounting” is allowed. Please see our Web site (

does business within and without Iowa, the business activity ratio in

iowa.gov/tax/forms/partinc.html) for more information on the BAR for

investment S-corporations

column (b) must be provided to each Iowa resident shareholder for

purposes of computing the S Corporation Apportionment Credit, form

Column (c), lines 1 through 14(f):

IA 134, if they elect that option.

For nonresident shareholders only, multiply the amounts in column (a)

by the percentage in column (b) and enter the product in column (c) for

Part I: Corporation Information

each line item. This is the amount apportionable to Iowa. Nonresidents:

Enter name and FEIN of S corporation on each IA K-1 form.

These figures may be reportable on your IA 126 nonresident schedule.

Shareholder information

Line 14(f) schedule: Show name and amount for each item reported on



Enter name, Social Security Number, or FEIN, and address of each

line 14(f).

shareholder.

Line 15(a): Enter the shareholder’s all-source modifications. This figure



Check the amended box if the K-1 is part of an amended 1120S return.

is equal to the S corporation’s all-source modifications multiplied by the



Check the appropriate box for the shareholder’s entity type.

shareholder’s ownership percentage. Individual shareholders: If this



Check either the resident shareholder or nonresident shareholder box,

figure is a positive amount, report it on line 14 of your IA 1040. If this

based on the shareholder’s current address.

figure is a negative amount, report it on line 24 of your IA 1040.



Enter shareholder’s percentage of ownership in the S corporation. Carry

Line 15(b): For nonresident shareholders only, enter the Iowa BAR.

this percentage to 6 decimal places if needed.

Line 15(c): For nonresident shareholders only, multiply line 15(a) by



the percentage on line 15(b) and enter here. Nonresident Shareholders:

Enter the S corporation’s Iowa receipts, as reported on page 1, Part IV,

If this entry is a positive amount, also enter it on line 14 of your IA 126

line 12, column A of the IA 1120S*.

form. If this entry is a negative amount, enter it on line 24 of your IA



Enter the S corporation’s total receipts, as reported on page 1, Part IV,

126 form.

line 12, column B of the IA 1120S*.

Part III: Shareholder’s Portion of IA Credits/Withholding: If the S



* If BAR is 100%, enter the Gross Receipts from line 1a, page 1 of

corporation submitted Iowa withholding for the shareholder, enter it in the

the federal 1120S.

current-year amount column on the first line of the schedule. If none, enter



Enter the S corporation’s BAR from page 1, Part IV, line 13 of the IA

zero.

1120S.

For all other credits, enter the tax credit name in the first column. For

awarded credits, enter your certificate number in the second column. Enter

the shareholder’s share of the current-year amount in the third column.

42-005b (07/03/13)

Form 1120s - Iowa Income Tax Return For S Corporations - 2013 Page 2

Related Articles

Related forms

Related Categories