Instructions For Form Ia 1040 - Iowa Individual Income Tax Form

Older Vehicles: For qualifying automobiles (model year 2003 or older)

MARRIED SEPARATE FILERS: The total deduction claimed by

and multipurpose vehicles (model year 1992 or older) the deductible

both spouses for each relative with a disability may not exceed $5,000.

amount is 60% of the registration fees paid in 2014.

b. Adoption Expenses: If you adopted a child during the tax year, you

may be eligible to deduct a portion of the adoption expenses you paid

Iowa Itemized Deduction Worksheet form IA 104 must be used if

in 2014. This deduction is taken in the year you paid the expenses even if

your federal AGI is more than $305,050 for married filers ($152,525 for

the child is not placed in your home that year. Costs relating to the child’s

married taxpayers filing separate returns) or qualified widow(er),

birth, any necessary fees, and all other costs connected with the adoption

$279,650 for head of household filers and $254,200 for single filers.

procedure are allowed. Include a list of expenses with your return.

Other Deductions (line 27 of IA Schedule A)

Subtract 3% of your total Iowa net income entered on line 26 from the

a. Expenses Incurred for Care of a Disabled Relative: Expenses,

total of qualifying adoption expense. If married, 3% of the combined net

not to exceed $5,000, incurred in caring for a disabled relative in

income must be subtracted. Only the amount which exceeds 3% of

your home may be deducted. The expenses must be for the care of a

your total Iowa net income may be deducted.

person who is your grandchild, child, parent, or grandparent. The

NOTE:

Taxpayer claiming adoption expenses on line 27 of the

disabled person must be unable, by reason of physical or mental

Schedule A must exclude those expenses eligible for the Adoption Tax

disability, to live independently and must be receiving or be eligible to

Credit in calculating the deduction.

receive medical assistance benefits under Title 19 of the U.S. Social

c. Mileage Deduction for Charitable Purposes: Iowa allows you an

Security Act. Only expenses that are not reimbursed can be

additional deduction for automobile mileage driven for charitable

claimed. An itemized list of expenses must be included with the

organizations. Calculate the deduction as follows:

return. Items may include food, clothing, medical expenses not

Number of miles x 39¢/mile

otherwise deductible, and transportation. The following expenses

Less charitable mileage deduction already

cannot be included: rent, mortgage payments, interest, utilities,

included as part of line 26, Iowa Schedule A

house insurance, and taxes. A statement from a qualified physician

Equals additional mileage deduction for

certifying that the person with the disability is unable to live

charitable purposes.

independently must be submitted with the return the first year the

deduction is taken and every third year thereafter.

STEP 9 TAX CALCULATION

LINE 39. Tax from Tables or Alternate Tax.

income” for purposes of this proration is the amount from line 26, plus

Tax from Tables: Visit the Department website for the tax tables.

any pension exclusion from line 21 and reportable social security

Alternate Tax Calculation: For filing statuses 2, 3, 4, 5, and 6. If the

benefits from step 4 of the IA 1040.

combination of your net income from line 26 PLUS any pension

LINE 40. Iowa Lump-sum Tax. Enter 25% of federal tax from form

exclusion taken on line 21 and reportable social security benefits-

4972.

from step 4 of the IA 1040 exceeds $13,500 ($32,000 if you or your

LINE 41. Iowa Minimum Tax. The Iowa minimum tax is imposed, for

spouse is 65 or older on 12/31/14), you are required to file a return

the most part, on the same tax preference items and adjustments on

but you may owe less tax by completing the worksheet below to

which federal minimum tax is imposed. However, you may be subject

compute your tax liability. Enter this alternate tax on line 39 if it is less

to Iowa minimum tax even if you have no liability for federal minimum

than the tax from the tax table. This is not available to status 1 filers.

tax. If you had tax preference items and adjustments in 2014, see

If you are married filing separately and one spouse has a net

form IA 6251 for further information.

operating loss that will be carried back or forward, then you cannot

Nonresidents and Part-year Residents: If you have Iowa-source tax

use the alternate tax computation. If the spouse with the net operating

preferences or adjustments, you may be subject to Iowa minimum tax.

loss elects not to carry the net operating loss back or forward, then

See form IA 6251.

you can use the alternate tax computation. A statement must be

LINE 44. Tuition and Textbook Credit. Taxpayers who have one or

included with the return saying that the spouse with the net operating

more dependents attending Kindergarten through 12th grade in an

loss will not carry it back or forward.

accredited Iowa school may take a credit for each dependent for

Enter the total of net income from

amounts paid for tuition and textbooks. Dependents must have

line 26, pension exclusion from line

attended a school in Iowa that is accredited under section 256.11,

21 of the IA 1040 and reportable

not operated for a profit, and adheres to the provisions of the

social security benefits from step 4

U.S. Civil Rights Act of 1964.

of the IA 1040. Filing statuses 3 or

The credit amount is 25% of the first $1,000 paid for each dependent

4: Enter combined totals of both

for tuition and textbooks. In the case of divorced or separated parents,

spouses.

only the spouse claiming the dependent can claim the amounts paid

Enter $13,500. ($32,000 if you or

by that spouse for tuition and textbooks for that dependent. Expenses

your spouse is 65 or older on

for textbooks or other items for home schooling, tutoring, or schooling

12/31/14.)

outside an accredited school do not qualify for the credit.

Income subject to alternate tax.

“Tuition” means any charges for the expense of personnel, buildings,

Subtract line 2 from line 1.

equipment, and materials other than textbooks, and other expenses that

Multiply line 3 by 8.98% (.0898).

relate to the teaching of only those subjects legally and commonly

Using the tax tables, determine the

taught in Iowa’s public elementary and secondary schools.

tax on the taxable income from line

38 of the IA 1040. Status 3 and 4

“Textbooks” means books and other instructional materials used in

filers: Calculate tax separately and

teaching those same subjects. This includes fees, books, and materials

combine the amounts

for extracurricular activities. Examples of extracurricular activities:

sporting events, speech activities, musical or dramatic events, driver’s

Compare the amounts on line 4 and

line 5. Enter the smaller amount here

education (if paid to a school), awards banquets, homecoming, prom

and on line 39, IA 1040.

(purchase of clothing does not qualify), and other school related social

events.

MARRIED SEPARATE FILERS (including status 4): Use the combined

For lists of items eligible and not eligible for the credit, see 2014

net incomes of both spouses to compute the alternate tax. (If you are

Expanded Instructions on our website. (Credit can be claimed only for

status 4 and do not provide the other spouse’s income in Step 2 of the

dependents listed on the return.) Calculate the proper amount of

IA 1040, you will not be allowed the alternate tax calculation.) Divide

expenses per dependent and multiply the amount – not to exceed

the alternate tax between spouses in the ratio of the net income of

$1,000 – by 25% (.25).

each spouse to the combined net income of both spouses. “Net

Page 6

41-002g (09/18/14)

Instructions For Form Ia 1040 - Iowa Individual Income Tax Form - 2014 Page 7

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