Instructions For Form Ia 1040 - Iowa Individual Income Tax Form

the total net income from federal Schedule C or C-EZ. A sale is considered

14. OTHER INCOME.

Part-year residents: Report any income on line 14 of IA 1040 which

an Iowa sale if goods are delivered or shipped to a point within the state

was received while an Iowa resident or income from Iowa sources

regardless of Freight on Board (F.O.B.) point.

while a nonresident. This includes gambling income and the bonus

6. CAPITAL GAIN OR (LOSS).

depreciation/section 179 adjustment attributable to Iowa from the

Part-year residents: Include 100% of the capital gain or loss from

IA 4562A.

assets sold while an Iowa resident. In addition, capital gain or loss from

Nonresidents: Report all other taxable income from Iowa sources.

assets sold while a nonresident of Iowa should be reported on the basis of

This includes gambling income.

the instructions for nonresidents that follow.

Nonresidents: Include in Iowa income 100% of capital gain or loss

16. PAYMENTS TO AN IRA, KEOGH, OR SEP.

Part-year residents: Deduct payments made to an IRA, Keogh, or

from the following:

SEP plan while an Iowa resident.

a. Sales of real or tangible personal property if the property was located

Nonresidents: Deduct payments made to an IRA, Keogh, or SEP plan

in Iowa at the time of the sale; or

in the ratio of Iowa earned income to total earned income.

b. Sales of intangible personal property if the taxpayer’s commercial

domicile is in Iowa.

17. DEDUCTIBLE PART OF SELF-EMPLOYMENT TAX.

NOTE: You may have a gain here even if you have a net loss on the

Part-year residents: Deduct the portion of the self-employment tax

IA 1040.

that is attributable to the self-employment income earned while an

Iowa resident.

7. OTHER GAINS OR (LOSSES).

Nonresidents: Deduct the portion of the amount allowed on your federal

Part-year residents: Report 100% of gains or losses from assets sold

return in the ratio of your Iowa self-employment income to your total

or exchanged while an Iowa resident and any gains or losses from

self-employment income.

federal form 4797 while a nonresident if the property was located in

Iowa at the time of sale or exchange.

18. HEALTH INSURANCE DEDUCTION.

Nonresidents: Report any gains or losses from federal form 4797 if

Part-year residents:

the property was located in Iowa.

a. Self-employed. Enter 100% of the health insurance premiums paid

NOTE: You may have a gain here even if you have a net loss on the

by a self-employed individual while an Iowa resident.

IA 1040.

b. Deducted through wages. Enter 100% of the health insurance

premiums that were not withheld from your wages on a pretax basis

8. TAXABLE IRA DISTRIBUTIONS.

while an Iowa resident.

Part-year residents: Report any taxable IRA distributions received

c. Paid direct by taxpayer. Enter 100% of the health insurance

while an Iowa resident.

premiums that you paid while an Iowa resident.

Nonresidents: Do not enter anything on this line.

Nonresidents:

9. TAXABLE PENSIONS AND ANNUITIES.

a. Self-employed. Enter 100% of the health insurance premiums paid

Pension is taxable to the state you live in when you receive it.

by a self-employed individual in the ratio of Iowa self-employment

Part-year residents: Report any pension and annuity income reported

income to total self-employment income.

on line 9 of the IA 1040 which was received while an Iowa resident.

b. Deducted through wages. Enter 100% of the health insurance

Nonresidents: Do not enter anything on this line.

premiums that were not withheld from your wages on a pretax basis

10. RENTS, ROYALTIES, PARTNERSHIPS, ESTATES, TRUSTS,

in the ratio of Iowa wages to total wages.

ETC.

c. Paid direct by taxpayer. Multiply the health insurance premiums

Part-year residents: Report all income shown on federal Schedule E

that you paid by the ratio of your Iowa-source net income on line 26

which was earned or received while an Iowa resident and all rents and

of the IA 126 to total net income on line 26 of the IA 1040. For this

royalties from Iowa sources and partnerships or S corporation income

net income calculation, do not include line 18, the health insurance

earned or received while a nonresident.

deduction in the above-referenced net income amounts.

Nonresidents: Report all rents and royalties from Iowa sources and all

19. PENALTY ON EARLY WITHDRAWAL OF SAVINGS.

Iowa partnership or S corporation income. See instructions for allocation

Part-year residents: Deduct the amount of any penalty you were

of business income on line 5 of this section.

charged because you withdrew funds from your time savings deposit

11. FARM INCOME OR (LOSS).

before its maturity while an Iowa resident or what was derived from an

Part-year residents: Report all net farm income earned or received

Iowa trade, business, or profession.

while an Iowa resident. Also report all net income from Iowa farm

Nonresidents: Deduct the amount of any penalty you were charged

activities while a nonresident using the instructions for nonresidents

because you withdrew funds from your time savings deposit before its

given below.

maturity that was derived from an Iowa trade, business, or profession.

Nonresidents: Report the total net income from Iowa farm activities.

20. ALIMONY PAID.

If farm activities were conducted both within and without Iowa, provide

Part-year residents: Deduct alimony paid while an Iowa resident.

a separate schedule showing allocation of the income and expenses to

Nonresidents: Deduct alimony paid in the ratio of Iowa gross income

Iowa.

to total gross income.

12. UNEMPLOYMENT COMPENSATION.

21. PENSION/RETIREMENT INCOME EXCLUSION.

Part-year residents: Report all unemployment benefits received while

Part-year residents: If you qualify for this exclusion on the IA 1040,

an Iowa resident and those benefits received the rest of the year that

you may exclude the amount of taxable retirement income received

relate to past employment in Iowa.

while an Iowa resident, up to a maximum of $6,000 (if filing status 1,

Nonresidents: Report the unemployment benefits that relate to

5, or 6) or $12,000 (if filing status 2, 3, or 4).

employment in Iowa. If the unemployment benefits relate to employment

Nonresidents: Iowa-source retirement income received by a nonresident

in Iowa and employment in another state, report the benefits to Iowa in

is not taxable to Iowa. Therefore, you do not qualify to take this exclusion.

the ratio of Iowa salaries and wages to total salaries and wages.

Do not enter anything on this line.

13. TAXABLE SOCIAL SECURITY BENEFITS.

22. MOVING EXPENSES.

Part-year residents: Report any Social Security income reported on

Part-year residents who moved into Iowa can enter any nonreimbursed

line 13 of the IA 1040 which was received while an Iowa resident.

moving expenses from line 22 of the IA 1040 that relate to the move to

Nonresidents: Do not enter anything on this line.

41-002j (07/21/13)

Instructions For Form Ia 1040 - Iowa Individual Income Tax Form - 2013 Page 10

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