Instructions For Form Ia 1040 - Iowa Individual Income Tax Form

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/

g. Executor’s fees

Section 179 Adjustment. Enter taxable income not reported on lines 1-

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

13. Write an explanation of the type of income. Examples of income to be

winnings. Report any Iowa tax withheld on line 65 of the IA 1040.

reported include:

Gambling losses may be reported as an itemized deduction on Schedule

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

A, but you cannot deduct more than the winnings you report.

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

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

include the IA 4562A with your return.

increased the income.

c. Capital gain from installment sales in 2013: Accrual-method

j. Refundable Iowa credits received in 2013 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 2013 was deducted on a prior Iowa return.

from the cancellation 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.

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.

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

MARRIED SEPARATE FILERS: If one spouse is employed and has

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

health insurance premiums paid through wages, that spouse will claim the

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

entire deduction. If both spouses pay health insurance premiums through

IRA are not deductible.

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

MARRIED SEPARATE FILERS:

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

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

self-employed health insurance must be allocated between the spouses

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

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

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

employment income of both spouses. If health insurance premiums are

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

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

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

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

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

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

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

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

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

do not include line 18, the health insurance deduction.

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

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

of the IRA deduction that is allowed for federal income tax

of any penalty you were charged because you withdrew funds from

purposes must be allocated between the spouses in the ratio of

your time savings deposit before its maturity.

the IRA contribution made by each spouse to the total IRA

MARRIED SEPARATE FILERS: Divide the penalty amount between

contribution made by both spouses.

spouses based upon registered ownership of the time deposit.

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

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

must claim his or her individual contributions.

separate maintenance payments that were deductible on your federal

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

tax return.

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

MARRIED SEPARATE FILERS: Only the spouse liable for these

1040 in computing federal adjusted gross income.

payments can deduct the alimony paid.

MARRIED SEPARATE FILERS: The deduction is allocated in the

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

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

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

employment tax paid.

deferred compensation, IRA distribution, or other retirement plan

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

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

paid for health and dental insurance premiums. This includes all

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

supplemental health insurance, such as Medicare B supplemental

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

medical insurance and Medicare D voluntary prescription drug insurance

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

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

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

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

pensioner or retirement income recipient must meet one of the following

of any premium reimbursement from Health Reimbursement

conditions:

Arrangements (HRAs).

Schedule A may not contain any health

a. 55 years of age or older on December 31, 2013, or

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

b. disabled, or

that no deduction is available to any individual who paid health

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

insurance premiums on a pretax basis.

individual who would have qualified for the exclusion in 2013 on the

basis of age or disability.

41-002d (12/09/13)

Instructions For Form Ia 1040 - Iowa Individual Income Tax Form - 2013 Page 4

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