Fillable Form Ia 1040c - Composite Individual Income Tax Return

Instructions for Composite Iowa Individual Income Tax Return

Election of Composite Filing

TAX RATE SCHEDULE

Composite returns for the 2013 calendar year must be filed by April

But

Of Excess

Minimum

Over

Not Over

Tax Rate

Over

30, 2014. An automatic 6-month extension for filing is available

only if 90% of the tax due is paid by the original due date. The

Income

$1,494

$0.00

+ (0.36%

$0)

Department must be notified in writing before a taxpayer chooses to

Filing

$1,494

$2,988

$5.38

+ (0.72%

$1,494)

discontinue filing composite returns.

Requirement

$2,988

$5,976

$16.14

+ (2.43%

$2,988)

Filing Requirements

$2,789

$5,976

$13,446

$88.75

+ (4.50%

$5,976)

$2,554

$13,446

$22,410

$424.90

+ (6.12%

x $13,446)

Nonresident partners, shareholders, members, or beneficiaries

$2,517

$22,410

$29,880

$973.50

+ (6.48%

x $22,410)

cannot be included in a composite return if the nonresident does not

have more income from Iowa sources than the amount of one

$2,488

$29,880

$44,820

$1,457.56

+ (6.80%

x $29,880)

standard deduction for a single taxpayer plus an amount of income

$2,405

$44,820

$67,230

$2,473.48

+ (7.92%

x $44,820)

necessary to create a tax liability at the effective tax rate on the

$2,345

$67,230

over

$4,248.35

+ (8.98%

x $67,230)

composite return sufficient to offset one personal exemption. See

6251 to determine if any Iowa minimum tax is due, and enclose

line 6 for minimum filing requirements.

completed form if necessary.

In addition, the above individuals should not be included if they have

9. The personal exemption credit for each partner, shareholder, or

income from Iowa sources other than from the partnership or other

member is $40.

entity; these individuals are required to file Iowa individual income

10. Enter the total of the nonrefundable credits from Part I of the

tax returns.

IA148 Tax Credits Schedule. You must complete the IA148 to

Line Instructions

include the total of all member’s credits that are included on

this return. Provide an additional worksheet with the amount of

1. Each nonresident partner’s, shareholder’s, or member’s Iowa K-

the tax credit for each member included on the return or a copy

1 will show that partner’s, shareholder’s, or member’s income

of each member’s IA Schedule K-1.

and nonresident modifications that are apportioned to Iowa. The

apportioned amount of each item of Iowa K-1 income that is a

13. Enter the total of the refundable credits from Part II of the

part of federal adjusted gross income and the apportioned

IA148 Tax Credits Schedule. You must complete the IA148 Tax

modifications of all nonresident partners, all nonresident

Credits Schedule to include the total of all members’ credits

shareholders, and/or all members included in this composite

that are included on this return. Provide an additional

worksheet

return are to be totaled and entered on this line. Nonresidents

with the amount of the tax credit for each member included on

with other Iowa-source incomes are not to be included on the

this return or a copy of each member’s IA Schedule K-1.

IA 1040C.

15. The taxpayers trust fund tax credit for 2013 for each partner,

Beneficiaries of a trust do not have an Iowa K-1, only a

shareholder, or member is $54, but cannot exceed the amount

federal K-1. Consequently, when nonresident beneficiaries

on line 14.

are included in the filing of a composite return with Iowa,

16. Enter the total amount of 2013 estimated tax payments and any

they must total all income and/or capital gain from real

of the prior year’s refund applied to your estimated payments

property or tangible personal property located in Iowa and

for 2013. Although estimated payments are not required, 2014

any other business income attributable to Iowa and enter on

estimated payments may be made on form IA 1040ES using the

this line.

partnership’s, limited liability company’s, S corporation’s, or

2. A deduction is allowed in lieu of the deduction for federal tax

trust’s identification number.

paid and is based upon the following schedule:

22. If you do not mail your return by the due date and at least 90%

Amount shown on line 1

Deduction

of the correct tax is not paid, you owe an additional 10% of the

tax due. If you file your return on time but do not pay at least

0 -

$49,999 =

No deduction

90% of the correct tax due, you owe an additional 5% of the tax

$50,000 -

$99,999 =

5% of line 1

due. If a payment is needed to meet the 90% requirement, it

$100,000 -

$199,999 =

10% of line 1

may be sent with form IA1040V using the partnership’s, limited

liability company’s, S corporation’s, or trust’s identification

Over

$200,000 =

15% of line 1

number.

3. For 2013 the standard deduction allowed is $1,900.00.

23. Interest is added at a rate of 0.4% per month beginning on the

6. Use the tax rate schedule above to figure your tax on composite

due date of the return and accrues each month until payment is

Iowa taxable income. Also listed are the minimum

made.

requirements for each tax rate.

24. Payment may be made with form IA1040V using the

7. Partners, shareholders, or members reporting income on the

partnership’s, limited liability company’s, S corporation’s, or

composite return may also be subject to Iowa minimum tax. The

trust’s identification number.

Iowa minimum tax is imposed on most of the same tax

ID Numbers

preference and adjustment items treated as exclusions for

federal alternative minimum tax purposes. Please see form IA

Enter preparer’s PTIN, and firm’s FEIN.

41-006b (11/18/13)

Form Ia 1040c - Composite Individual Income Tax Return - 2013 Page 2

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