Fillable Form Ia 134 - S Corporation Apportionment Credit

Iowa Department of Revenue

2013 IA 134 Instructions

General Instructions

Iowa resident shareholders of S corporations may be eligible

for a year in which the S corporation was a

for a credit if the S corporation carries on business outside

C corporation and which is taxed as a dividend or

Iowa. For tax years beginning on or after January 1, 2013,

capital gain for federal income tax purposes.

estates and trusts with a situs in Iowa that are shareholders

c. Distributions from income previously taxed by Iowa

in S corporations may be eligible for the credit if the S

for a year prior to the first tax year the resident

corporation carries on business outside of Iowa.

shareholder elected to apportion income.

d. Distributions paid from income for which the

Married filing separate taxpayers, filing status 3 or 4: Each

corporation can show that Iowa tax has been previously

spouse must calculate a separate credit on a separate IA 134.

paid.

If a taxpayer is a shareholder in multiple S corporations, a

Other Information

separate IA 134 must be completed for each S corporation.

Resident or trust shareholders of all S corporations which

1. A shareholder of an S corporation which carries on

carry on business activities in at least one other state may,

business outside Iowa which has elected to apportion

at their election, determine the S corporation income

income and then elects not to apportion income cannot

allocable to sources within Iowa by allocation and

re-elect to apportion income for three tax years

apportionment of the S corporation income.

immediately following the first tax year in which the

shareholder elected not to apportion income, unless

Page 1, line 13 - Other Deductions

the Director of the Iowa Department of Revenue

Do not include amounts paid by the corporation that would

consents to the election.

be allowed as itemized deductions on a shareholder’s return

2. If a taxpayer takes advantage of the apportionment

if they were paid directly by a shareholder for the same

provisions for a resident or trust shareholder of an S

purpose.

corporation, then the taxpayer may not take a credit

Page 1, line 24 - Value of cash or property distri-

against Iowa income tax for income taxes or taxes

butions from income not previously taxed by

measured by income paid to another state or foreign

Iowa

country on the S corporation income.

3. For tax years beginning on or after January 1, 2002,

Distributions from income not previously taxed by Iowa

100% of federal income tax attributable to S

include the amount of all cash distributions and the fair

corporation income can be deducted on page 1, line

market value of all property distributions made during the

25.

year.

For more information, contact Taxpayer Services at 515-

Do not include the following on this line:

281-3114 or 1-800-367-3388 (Iowa, Omaha, Rock Island,

a. Distributions not subject to Iowa tax. Example: interest

Moline only); e-mail: idr@iowa.gov.

from federal securities or certain securities issued by

Iowa.

b. Distributions from income previously taxed by Iowa

Schedule A: Federal Income Tax Attributable to S Corporation Income

Shareholders who file joint returns for federal and status 3 for Iowa can refer to Iowa rule

701-50.10 for clarification.

1 Taxpayer’s share of federal S corporation income from line 15, IA 134.

2 Federal adjusted gross income from line 37, federal 1040; or line 9, federal 1041.

3 Divide line 1 by line 2. Enter percentage to 4 decimal places (not to exceed 100%)%

4 Federal income tax before credits from line 44, federal 1040 ; or federal 1041, Schedule G line 1a.

5 Federal alternative minimum tax from line 45, federal 1040; or federal 1041, Schedule G, line 1c.

6 Net federal income tax. Add lines 4 and 5.

7 Multiply line 3 by line 6.

8 Federal income tax credits related to S corp (exclude backup withholding and motor fuel tax credit).

9 Federal income tax attributable to S corporation income. Subtract line 8 from line 7.

41-134b (09/04/13)

Form Ia 134 - S Corporation Apportionment Credit - 2013 Page 2

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