Iowa Income Tax Information - 2012 (Page 4 of 11) in pdf

MARRIED SEPARATE FILERS:

a. If both spouses received Social Security benefits, the taxable amount is allocated between the spouses in the ratio of the benefits received by

each spouse to the total benefits received.

b. If only one spouse received benefits, that spouse should report the portion of the benefits that is taxable.

LINE 14. Other Income, Gambling Income, Bonus Depreciation/

h. Gambling winnings: You must report the full amount of gambling

section 179 Adjustment. Enter taxable income not reported on lines

winnings. Report any Iowa tax withheld on line 60 of the IA 1040.

1-13. Write an explanation of the type of income. Examples of income

Gambling losses may be reported as an itemized deduction on

to be reported include:

Schedule A, but you cannot deduct more than the winnings you

a. Baby-sitting income not reported on federal Schedule C or C-EZ.

report.

b. Bonus depreciation / section 179 adjustment from the IA 4562A;

i. Partnership income and/or S corporation income: Modifications

attach the IA 4562A to your return.

that increased the income.

c. Capital gain from installment sales in 2012: Accrual-method

j. Refundable Iowa credits received in 2012 which were included as

taxpayers may use the installment method for reporting capital gain

income on the federal 1040 must also be added back.

on their Iowa returns.

k. Refunds: State income tax refunds other than Iowa to the extent

d. College Savings Iowa or Iowa Advisor 529 Plan: Income received

that the tax refunded in 2012 was deducted on a prior Iowa return.

from the cancelation of a participation agreement to the extent the

l. Wells: Percentage depletion from an oil, gas or geothermal well

amount was previously deducted on line 24 of the IA 1040.

that was reported on federal form 6251.

e. Director’s fees

m. Other income as reported on line 21 of the federal 1040.

f. Drilling: Intangible drilling costs that were reported on federal form

MARRIED SEPARATE FILERS: The spouse to whom the income

6251.

was paid must report that income.

g. Executor’s fees

STEP 5 ADJUSTMENTS TO INCOME

All taxpayers report adjustments from all sources in this section.

NONRESIDENTS AND PART-YEAR RESIDENTS also report Iowa-source adjustments to income on the Schedule IA 126.

MARRIED SEPARATE FILERS: If one spouse is employed and has

LINE 16. Payments to an IRA, Keogh, or SEP. Enter the amount

health insurance premiums paid through wages, that spouse will claim

claimed on your federal tax return for payments made to your IRA,

the entire deduction. If both spouses pay health insurance premiums

Keogh Plan, SEP, SIMPLE, or Qualified Plans. Payments to a Roth

through their wages, each spouse will claim what he or she paid.

IRA are not deductible.

If both spouses have self-employment income, the deduction for

MARRIED SEPARATE FILERS:

self-employed health insurance must be allocated between the spouses

a. If only one spouse has earned income, that individual can

in the ratio of each spouse’s self-employment income to the total self-

contribute up to $5,000 per year ($6,000 if 50 or older) to an IRA

employment income of both spouses. If health insurance premiums are

account of the nonworking spouse and up to $5,000 per year

paid directly by one spouse, that spouse will claim the entire deduction.

($6,000 if 50 or older) to an IRA account of the individual.

If both spouses paid through a joint checking account, the deduction is

b. If both spouses earned income and made contributions to an IRA

allocated between the spouses in the ratio of each spouse’s net income

account, each spouse must claim his or her own contribution, not

to the total net income of both spouses. For this net income calculation,

to exceed $5,000 per spouse ($6,000 if 50 or older).

do not include line 18, the health insurance deduction.

c. If both spouses made contributions to an IRA but only a portion

LINE 19. Penalty on Early Withdrawal of Savings. Enter the amount

of the contribution is deductible on the federal return, the amount

of any penalty you were charged because you withdrew funds from

of the IRA deduction that is allowed for federal income tax

your time savings deposit before its maturity.

purposes must be allocated between the spouses in the ratio of

MARRIED SEPARATE FILERS: Divide the penalty amount between

the IRA contribution made by each spouse to the total IRA

spouses based upon registered ownership of the time deposit.

contribution made by both spouses.

LINE 20. Alimony Paid. Enter the amount of alimony payments or

d. For Keogh Plans, SEPs, SIMPLE, or Qualified Plans, each spouse

separate maintenance payments that were deductible on your federal

must claim his or her individual contributions.

tax return.

LINE 17. Deductible Part of Self-employment Tax. Enter the amount

MARRIED SEPARATE FILERS: Only the spouse liable for these

of self-employment tax that was deductible on line 27 of your federal

payments can deduct the alimony paid.

1040 in computing federal adjusted gross income.

LINE 21. Pension/Retirement Income Exclusion. If you or your

MARRIED SEPARATE FILERS: The deduction is allocated in the

spouse receive a pension, annuity, self-employed retirement plan,

ratio of self-employment tax paid by each spouse to the total self-

deferred compensation, IRA distribution, or other retirement plan

employment tax paid.

benefits, you may be eligible to exclude from Iowa income tax part or

LINE 18. Health Insurance Deduction. Enter 100% of the amount

all of the retirement income that is taxable on your federal return.

paid for health and dental insurance premiums. This includes all

Social Security benefits are not included. The exclusion can be up to

supplemental health insurance, such as Medicare B supplemental

$6,000 for individuals who file status 1, 5, or 6 and up to $12,000 for

medical insurance and Medicare D voluntary prescription drug insurance

married taxpayers who file status 2, 3, or 4. To take this exclusion the

program (not “Medicare tax withheld” on your W-2), and long-term

pensioner or retirement income recipient must meet one of the following

nursing home coverage. The deduction must be reduced by the amount

conditions:

of any premium reimbursement from Health Reimbursement

a. 55 years of age or older on December 31, 2012, or

Arrangements (HRAs).

Schedule A may not contain any health

b. disabled, or

insurance premiums which were used as a deduction on line 18. Note

c. a surviving spouse or a survivor having an insurable interest in an

that no deduction is available to any individual who paid health

individual who would have qualified for the exclusion in 2012 on

insurance premiums on a pretax basis.

the basis of age or disability.

41-002d (09/14/12)

Iowa Income Tax Information - 2012 Page 4

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