Instructions For Form Ia 1040 - Iowa Individual Income Tax Form

LINE 13. Gambling Winnings: You must report the full amount of

e. Director’s fees

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

f. Drilling: Intangible drilling costs that were reported on federal form

1040. Gambling losses may be reported as an itemized deduction on

6251.

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

g. Executor’s fees

MARRIED SEPARATE FILERS: The spouse to whom the income

h. Reserved. No income currently assigned to “h”.

was paid must report that income.

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

increased the income.

LINE 14. Other Income, Bonus Depreciation, and Section 179

j. Refundable Iowa credits received in 2014 which were included as

Adjustment. Enter taxable income not reported on lines 1-13. Write

income on the federal 1040 must also be added back.

an explanation of the type of income. Examples of income to be reported

k. Refunds: State income tax refunds other than Iowa to the extent

include:

that the tax refunded in 2014 was deducted on a prior Iowa return.

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

l. Wells: Percentage depletion from an oil, gas or geothermal well

b. Bonus depreciation and section 179 adjustment from the IA

that was reported on federal form 6251.

4562A; include the IA 4562A with your return.

m. Other income as reported on line 21 of the federal 1040.

Capital gain from installment sales in 2014: Accrual-method

MARRIED SEPARATE FILERS: The spouse to whom the income

taxpayers may use the installment method for reporting capital gain

was paid must report that income.

on their Iowa returns.

d. College Savings Iowa or Iowa Advisor 529 Plan: Income received

from the cancellation of a participation agreement to the extent the

amount was previously deducted on line 24 of the IA 1040.

STEP 6 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

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

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

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

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

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

Roth IRA are not deductible.

calculation, do not include line 18, the health insurance deduction. If

MARRIED SEPARATE FILERS:

one spouse is employed and has post-tax health insurance premiums

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

paid through wages, that spouse will claim the entire deduction. If both

contribute up to $5,500 per year ($6,500 if 50 or older) to an IRA

spouses pay post-tax health insurance premiums through their wages,

account of the nonworking spouse and up to $5,500 per year ($6,500 if

each spouse will claim what each spouse paid.

50 or older) to an IRA account of the individual.

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

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

amount of any penalty you were charged because you withdrew

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

funds from your time savings deposit before its maturity.

exceed $5,500 per spouse ($6,500 if 50 or older).

MARRIED SEPARATE FILERS: Divide the penalty amount between

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

spouses based upon registered ownership of the time deposit.

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

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

the IRA deduction that is allowed for federal income tax purposes

separate maintenance payments that were deductible on your

must be allocated between the spouses in the ratio of the IRA

federal tax return.

contribution made by each spouse to the total IRA contribution made

MARRIED SEPARATE FILERS: Only the spouse liable for these

by both spouses.

payments can deduct the alimony paid.

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

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

must claim his or her individual contributions.

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

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

deferred compensation, IRA distribution, or other retirement plan

amount of self-employment tax that was deductible on line 27 of

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

your federal1040 in computing federal adjusted gross income.

all of the retirement income that is taxable on your federal

MARRIED SEPARATE FILERS: The deduction is allocated in the

return. Social Security benefits a n d m i l i t a r y r e t i r e m e n t p a y

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

are not included. The exclusion can be up to $6,000 for individuals

employment tax paid.

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

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

file status 2, 3, or 4. To take this exclusion the income recipient must

paid for health and dental insurance premiums. This includes all

meet one of the following conditions:

supplemental health insurance, such as Medicare B supplemental

a. 55 years of age or older on December 31, 2014, or

medical insurance and Medicare D voluntary prescription drug

b. disabled, or

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

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

long-term nursing home coverage. The deduction must be reduced by

individual who would have qualified for the exclusion in 2014 on the

the amount of any premium reimbursement from Health

basis of age or disability.

Reimbursement Arrangements (HRAs). Schedule A may not

MARRIED SEPARATE FILERS: If both spouses have pension

contain any health insurance premiums which were used as a

income, and both meet the eligibility requirements, the exclusion of

deduction on line 18.

up to $12,000 is prorated between them in the ratio that each spouse’s

Note: No deduction is available to any individual who paid health

pension relates to the total pension received by both spouses. If only

insurance premiums on a pretax basis. Health insurance premiums

one spouse has pension income and meets the eligibility

are typically deducted from wages on a pretax basis.

requirements, that spouse takes the entire exclusion of up to $12,000.

MARRIED SEPARATE FILERS: If

both

spouses

have

self-

The spouse who has no pension income receives no exclusion.

employment

income,

the

deduction

for self-employed health

LINE 22. Moving Expense Deduction. Enter the deduction for

insurance must be allocated between the spouses in the ratio of each

moving expenses incurred in 2014. Include a copy of federal form 3903.

spouse’s self-employment income to the total self- employment

MARRIED SEPARATE FILERS: This deduction must be divided

income of both spouses. If health insurance premiums are paid

between spouses based on earned income received after their

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

move. If one spouse can show that the move was made for that

spouse, that spouse is entitled to the entire deduction.

Page 3

41-002d (09/18/14)

Instructions For Form Ia 1040 - Iowa Individual Income Tax Form - 2014 Page 4

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