Instructions For Form Ia 1040 - Iowa Individual Income Tax Form

Example: Students Patty and Mark have qualifying expenses of

Examples are available in the online Expanded Instructions. You may

$1,400 and $700 respectively. Their parents can take a credit of

owe less tax by using filing status 3 or 4. A copy of Schedule IA 126

$250 (25% of $1,000 maximum) for Patty and $175 (25% of $700) for

and a copy of your federal return must be included.

Mark, for a total credit of $425.

LINE 50. Other Nonrefundable Iowa Credits. Enter the total of the

MARRIED SEPARATE FILERS: This credit must be taken by the

credits from Part I of the IA 148 Tax Credits Schedule. See the

spouse claiming the dependent. Any unused part of this credit

2014 online Expanded Instructions for the list of credits. You must

cannot be used by the other spouse.

include the IA 148 with the IA 1040.

LINE 45. Volunteer Firefighter/Volunteer Emergency Medical

LINE 52. School District Surtax/EMS Surtax. Multiply the amount on

Services (EMS) Personnel/Reserve Peace Officer Tax Credit. A

line 51 by the surtax rate and enter the result. The applicable school

tax credit of up to $100 is available for volunteer firefighters, volunteer

district is the one in which you resided on the last day of the tax year, not

EMS personnel, or state certified reserve peace officers. A volunteer

necessarily the district where your children attend school. Taxpayers

firefighter must be an active member of an organized volunteer fire

without children, or without children in public school, are still subject to

department in Iowa who has met minimum training standards.

this tax. Surtax rates are listed on the Department website. The name of

Volunteer EMS personnel must be individuals trained to provide

your school district may be found on your voter registration card.

emergency medical care, who are certified as first responders, and have

LINE 55. Contributions. Enter your voluntary contributions to any of the

been issued certificates by the Iowa Department of Public Health. A

checkoffs in boxes 55a, 55b, 55c, and 55d. Please note that you may

reserve peace officer must meet the minimum state training standards

contribute to any of the checkoffs regardless of whether you are entitled

established by the Iowa Law Enforcement Academy. The tax credit

to a refund or owe additional taxes, but your contribution will reduce

equals $100 if the volunteer served for all of 2014. If the volunteer did

your refund or add to the amount you owe. Your contribution this year

not serve during all of 2014, the $100 credit is prorated based on the

will qualify as a charitable contribution on next year’s return if the return is

number of months the volunteer served, rounded to the nearest dollar.

filed during the calendar year. If you file an amended return, you cannot

If an individual serves in more than one capacity, the credit is limited to

change your contribution.

$100 in total.

MARRIED SEPARATE FILERS: Married couples filing separately on

LINE 48. Credit for Nonresident or Part-year Resident. Enter the

a combined return (filing status 3) must enter their combined checkoff

amount of your nonresident/part-year resident tax credit from

amounts in the appropriate box(es) if both choose to contribute.

Schedule IA 126, line 33. IA 126 instructions begin on page 8.

STEP 10 CREDITS

LINE 57. Out-of-state Tax Credit. All income an Iowa resident earns is

If you are choosing the Early Childhood Development Credit, you

taxable to Iowa to the same extent that it is taxable on the federal

may take the credit equal to 25% of the first $1,000 of qualifying

return even if the income was earned in another state or foreign country.

expenses paid in 2014 for each dependent from the ages of three

If another state or foreign country taxes that same income, then the Iowa

through five.

resident may be able to claim the Out-of-state Tax Credit by

Expenses that qualify include the following:

completing the IA 130 form. See examples on page 10.

• Services provided by a preschool, as defined in IA Code section

237A.1

LINE 58. Iowa Fuel Tax Credit. Enter the amount of Iowa Fuel Tax

• Books that improve child development, such as textbooks, music

Credit from Schedule IA 4136. The federal Schedule 4136 cannot be

and art books, teacher’s editions, and reading books

used. The Iowa credit does not apply to fuel used in on-road vehicles

• Instructional materials required to be used in a lesson activity,

or pleasure boats. If you have an Iowa Fuel Tax Refund Permit Number

such as paper, notebooks, pencils, and art supplies

and have claimed any refunds during the tax year, do not claim any

• Lesson plans and curricula

credit on this line.

• Child development and educational activities outside the home,

LINE 59. Child and Dependent Care Credit OR Early Childhood

such as drama, art, music and museum activities, and the

Development Credit. Only one of these credits may be taken.

entrance fees for such activities

Only taxpayers with a net income of less than $45,000 are eligible

Early childhood development expenses that do not qualify include:

to take one of these credits. If you are married, your net income and

• Food,

lodging,

membership

fees

relating

child

the net income of your spouse must be combined to determine if you

development and educational activities outside the home

qualify, even if your spouse does not file an Iowa return.

• Services, materials, or activities for the teaching of religious

If you are choosing the Child and Dependent Care Credit, use

tenets, doctrines, or worship, if the purpose of these expenses is

the following worksheet to calculate the credit.

to instill those tenets, doctrines, or worship

Enter the amount from line 11 of federal form

MARRIED SEPARATE FILERS: In computing the credit, the

2441.

combined net income of both spouses must be used. The credit must

If total of line 26 of the IA 1040, columns A and B,

be divided between spouses in the ratio of each spouse’s net income

is:

to their combined net income.

allowable %

LINE 60. Iowa Earned Income Tax Credit (EITC). Enter 15.0% (0.15)

of the federal EITC claimed on your federal return.

Less than $10,000

75%

$25,000 - $34,999

50%

Nonresidents and Part-year Residents: The Iowa EITC must be

$10,000 - $19,999

65%

$35,000 - $39,999

40%

adjusted using the following formula:

$20,000 - $24,999

55%

$40,000 - $44,999

30%

Iowa net income (line 26, IA 126)

$45,000 and over:

All-source net income of you

Credit

and spouse (line 26, IA 1040)

Enter % here .............................................................. 2.

Iowa EITC

on line

The ratio cannot exceed

Credit. Multiply line 1 by the percentage on line 2.

100%

Enter the result and on line 59 of the IA 1040. ........... 3.

Nonresidents and Part-year Residents: The Child and Dependent

MARRIED SEPARATE FILERS: The Iowa EITC must be divided between

Care Credit must be adjusted using the following formula:

spouses in the ratio of each spouse’s earned income to total earned

Iowa net income (line 26, IA 126)

income. Earned income includes wages, salaries, tips, or other

compensation, and net earnings from self-employment.

All-source net income of you and

Line 3

Credit on

spouse (line 26, IA 1040)

credit

line 59

The ratio cannot exceed 100%

above

Page 7

41-002h (09/18/14)

Instructions For Form Ia 1040 - Iowa Individual Income Tax Form - 2014 Page 8

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