Instructions For Form Ia 1040 - Iowa Individual Income Tax Form

2014 I o w a Income Tax Information

Additional Expanded Instructions are available online at

FILE ELECTRONICALLY FOR A FASTER REFUND

Due date: Iowa income tax returns are due April 30, 2015.

An Illinois resident working for wages or salaries in Iowa should complete

and file the IA 44-016 “Employee’s Statement of Nonresidence in Iowa”

Farmers and commercial fishers: If at least 2/3 of your income is

with the employer so that the employer will withhold Illinois income tax.

from farming or commercial fishing, you may avoid penalty for underpayment

Iowa will tax any Iowa-source income received by an Illinois resident

of estimated tax in one of the following ways: (1) Pay the estimated tax

that is not from wages or salaries. Illinois will tax any Illinois-source

in one payment on or before January 15, 2015, and file the Iowa

income received by an Iowa resident that is not from wages or

income tax return by April 30, 2015, or (2) file the Iowa income tax

salaries.

Examples:

gambling

winnings

and

unemployment

return and pay the tax due in full on or before March 2, 2015.

compensation.

Who must file? You must file an Iowa return if you were a resident or

If Illinois income tax has been mistakenly withheld from the wages or

part-year resident of Iowa in 2014 and meet any of the following

salary of an Iowa resident, the Iowa resident must file an Illinois

requirements. Nonresidents, see items f. and g.

income tax return to get a refund.

NOTE: In meeting the filing requirements below, both incomes of each

Illinois residents who had Iowa income tax withheld in error from their

spouse must be included, and any pension/retirement income exclusion

wages and have no other Iowa-source income must file an Iowa

(line 21 of the IA 1040) and any Reportable Social Security benefit

income tax return requesting a refund. They should complete Steps 1,

amount from s t e p 4 o f t h e I A 1 0 4 0 must be added back.

2, and 3 of the IA 1040, show “0” on line 1 of Step 5 , line 26 of

You had a net income (line 26 of the IA 1040) of more than $9,000

Step 6 , and line 53 of Step 9, write “Illinois resident tax withheld in

and your filing status is single. ($24,000 if 65 or older on 12/31/14)

error” on the face of the return. On the back of the IA 1040 on lines 65,

You had a net income (line 26 of the IA 1040) of more than $13,500

67, 68, 69, and 70, enter the Iowa tax withheld, sign the return, and

and your filing status is other than single. ($32,000 if you or your

include copies of W-2s with the return. Copies of federal and Illinois

spouse is 65 or older on 12/31/14)

returns must be enclosed.

You were claimed as a dependent on another person’s Iowa return

Extension requests: Iowa does not have an extension form to obtain

and had a net income (line 26 of the IA 1040) of $5,000 or more.

additional time to file. To avoid the late-filing penalty, at least 90% of your

You were in the military service with Iowa shown as your legal

total tax liability must be paid by April 30, 2015; you will automatically have

residence even though stationed outside of Iowa.

until November 2, 2015, to file your return. You may, however, owe a

You were subject to Iowa lump-sum tax.

2210 penalty for failure to make estimate payments. You will owe

You were a nonresident or part-year resident and your net income

interest on any tax due after April 30, 2015. If you need to make a tax

from Iowa sources (line 26 of the IA 126) was $1,000 or more,

payment to meet the 90% requirement, see payment options available

unless below the income thresholds above.

on the Department website.

You were a nonresident or part-year resident and subject to Iowa

lump-sum tax or Iowa minimum tax (even if line 26 of IA 126 is less

Military personnel: Information is available on the Department’s website

than $1,000).

in the 2014 Expanded Instructions.

Nonresidents and part-year residents: If you are a nonresident or a

Injured spouse: The federal “injured spouse” form is not recognized

part-year resident with income from Iowa sources, you must complete

by the State of Iowa when using filing status 2 or 3. If your spouse’s

both the IA 1040 and the IA 126. See instructions, page 8.

refund will be used to pay a federal, state, county, or city debt, we

suggest each spouse file an IA 1040, filing status 4 to prevent your

Iowa and Illinois reciprocal agreement: Any wages or salaries

refund from being applied to your spouse’s debt.

earned by an Iowa resident working in Illinois are taxable only to Iowa and

not to Illinois. Any wages or salaries earned by an Illinois resident working

Federal return: Including a copy of your federal return with your Iowa

in Iowa are taxable only to Illinois and not to Iowa.

return may help with processing your Iowa return.

An Iowa resident working for wages or salary in Illinois should complete

Consumer’s Use Tax: If you purchased products for use in Iowa from

and file Illinois form IL-W-5-NR “Employee’s Statement of Nonresidence

a business located outside Iowa and the seller does not charge you

in Illinois” with the employer so that the employer will withhold Iowa income

Iowa sales tax, you may owe 6% consumer’s use tax on the

tax.

purchase. This includes items purchased from catalogs and the

Internet. See 2014 Expanded Instructions on the Department’s

website for more information on paying consumers use tax.

NEW FOR 2014:

At the time of publication, Iowa has not adopted federal Internal Revenue Code changes regarding the determination of income that occurred after

January 2, 2014.

Step 4: While social security benefits are not subject to Iowa income tax, the Reportable Social Security benefit amount is included in the alternate tax

calculation worksheet and the tax reduction worksheet, as well as the calculation of whether sufficient income was earned in order to file an Iowa

return. See the Social Security Worksheet under Step 4 of the instruction booklet.

Line 9: Military retirement pay is not included on line 9 since it is not subject to Iowa income tax.

Line 32:

Federal tax includes the net investment income tax on Federal Form 8960. Federal tax does not include the additional Medicare tax on Federal

Form 8959 and does not include the Shared Responsibility Payment reported on line 61 of the federal 1040 return.

Line 45: The volunteer firefighter/EMS/reserve peace officer credit is increased to $100. State certified reserve peace officers are now eligible for the

credit.

Line 50: The Iowa solar energy system tax credit is 60% of the federal solar energy credit, with a maximum Iowa credit for a residential installation of

$5,000 and a maximum Iowa credit for a business installation of $20,000.

Line 50: A farm to food tax credit is available for producers of food who donate food to an Iowa food bank or an Iowa emergency feeding organization.

See the 2014 Expanded Instructions for more details on this credit.

Line 60: The Iowa earned income tax credit is 15% of the federal earned income tax credit.

Line 61: An Iowa adoption credit is available for the first $2,500 of unreimbursed expenses related to an adoption.

Line 64: A taxpayer’s trust fund tax credit of $15 is available for each taxpayer who files a 2014 Iowa 1040 return by November 2, 2015. The credit is

limited to the lesser of the amount shown on line 63 or $15.

Schedule A: Taxpayer claiming adoption expenses on line 27 of the Schedule A must exclude those expenses eligible for the Adoption Tax Credit in

calculating the deduction.

41-002a (11/13/14)