Instructions For Form Ia 1040 - Iowa Individual Income Tax Form

Nonresidents: Report the portion of business income or loss

14. OTHER INCOME.

attributable to business conducted in Iowa. Include a supporting

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

schedule showing Iowa gross receipts divided by total gross receipts;

which was received while an Iowa resident or income from Iowa

multiply this ratio times the total net income from federal Schedule C

sources while a nonresident. This includes the bonus depreciation

or C-EZ. A sale is considered an Iowa sale if goods are delivered or

and section 179 adjustment attributable to Iowa from the IA 4562A.

shipped to a point within the state regardless of Freight on Board

Nonresidents: Report all other income from Iowa sources.

(F.O.B.) point.

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

6. CAPITAL GAIN OR (LOSS).

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

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

or SEP plan while an Iowa resident.

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

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

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

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

basis of the instructions for nonresidents that follow.

17. DEDUCTIBLE PART OF SELF-EMPLOYMENT TAX.

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

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

from the following:

tax that is attributable to the self-employment income earned

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

while an Iowa resident.

located in Iowa at the time of the sale; or

Nonresidents: Deduct the portion of the amount allowed on your

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

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

domicile is in Iowa.

total self-employment income.

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

18. HEALTH INSURANCE DEDUCTION.

the IA 1040.

Part-year residents:

7. OTHER GAINS OR (LOSSES).

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

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

by a self-employed individual while an Iowa resident.

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

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

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

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

in Iowa at the time of sale or exchange.

while an Iowa resident.

Nonresidents: Report any gains or losses from federal form 4797

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

if the property was located in Iowa.

premiums that you paid while an Iowa resident.

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

Nonresidents:

the IA 1040.

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

8. TAXABLE IRA DISTRIBUTIONS.

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

Part-year residents: Report any taxable IRA distributions received

income to total self-employment income.

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 in

9. TAXABLE PENSIONS AND ANNUITIES.

the ratio of Iowa wages to total wages.

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

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

Part-year residents: Report any pension and annuity income

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

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

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

resident.

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

Nonresidents: Do not enter anything on this line.

deduction in the above-referenced net income amounts.

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

19. PENALTY ON EARLY WITHDRAWAL OF SAVINGS.

ETC.

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

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

charged because you withdrew funds from your time savings deposit

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

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

and royalties from Iowa sources and partnerships or S corporation

Iowa trade, business, or profession.

income earned or received while a nonresident.

Nonresidents: Deduct the amount of any penalty you were charged

Nonresidents: Report all rents and royalties from Iowa sources and

because you withdrew funds from your time savings deposit before its

all Iowa partnership or S corporation income. See instructions for

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

allocation of business income on line 5 of this section.

20. ALIMONY PAID.

11. FARM INCOME OR (LOSS).

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

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

Nonresidents: Deduct alimony paid in the ratio of Iowa gross

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

income to total gross income.

activities while a nonresident using the instructions for nonresidents

21. PENSION/RETIREMENT INCOME EXCLUSION.

given below.

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

Nonresidents: Report the total net income from Iowa farm

you may exclude the amount of taxable retirement income received

activities. If farm activities were conducted both within and without

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

Iowa, provide a separate schedule showing allocation of the income

1, 5, or 6) or $12,000 (if filing status 2, 3, or 4).

and expenses to Iowa.

Nonresidents: Iowa-source retirement income received by a

12. UNEMPLOYMENT COMPENSATION.

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

Part-year residents: Report all unemployment benefits received

this exclusion. Do not enter anything on this line.

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

22. MOVING EXPENSES.

that relate to past employment in Iowa.

Part-year residents who moved into Iowa can enter any

Nonresidents: Report the unemployment benefits that relate to

unreimbursed moving expenses from line 22 of the IA 1040 that relate

employment in Iowa. If the unemployment benefits relate to

to the move to Iowa. Part-year residents moving out of Iowa cannot

employment in Iowa and employment in another state, report the

take any deduction on this line.

benefits to Iowa in the ratio of Iowa salaries and wages to total salaries

Nonresidents: Do not enter anything on this line.

and wages.

23. IOWA CAPITAL GAIN DEDUCTION.

13. GAMBLING WINNINGS.

Enter 100% of qualifying capital gains attributable to Iowa sources.

Part-year residents: Report any gambling winnings on line 13 of

24. OTHER ADJUSTMENTS.

IA 1040 which was received while an Iowa resident or income

Deduct miscellaneous adjustments to income in the same ratio as the

from Iowa sources while a nonresident.

income to which the adjustment relates was allocated to Iowa.

Nonresidents: Report all gambling winnings from Iowa sources.

Page 9

41-002j (09/18/14)

Instructions For Form Ia 1040 - Iowa Individual Income Tax Form - 2014 Page 10

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