Fillable Form Ia 1040c - Composite Individual Income Tax Return

Instructions for Composite Iowa Individual Income Tax Return

Election of Composite Filing

TAX RATE SCHEDULE

Composite returns for the 2012 calendar year must be filed by

But

Of Excess

Minimum

Over

Not Over

Tax Rate

Over

April 30, 2013. An automatic 6-month extension for filing is

Income

$1,469

$0.00

(0.36%

$0)

available only if 90% of the tax due is paid by the original due

Filing

$1,469

$2,938

$5.29

(0.72%

$1,469)

date. The Department must be notified in writing before a

taxpayer chooses to discontinue filing composite returns.

Requirement

$2,938

$5,876

$15.87

(2.43%

$2,938)

$2,749

$5,876

$13,221

$87.26

(4.50%

$5,876)

Filing Requirements

$2,514

$13,221

$22,035

$417.79

(6.12%

x $13,221)

Nonresident partners, shareholders, members, or beneficiaries

$2,477

$22,035

$29,380

$957.21

(6.48%

x $22,035)

cannot be included in a composite return if the nonresident

$2,448

$29,380

$44,070

$1,433.17

(6.80%

x $29,380)

does not have more income from Iowa sources than the amount

$2,365

$44,070

$66,105

$2,432.09

(7.92%

x $44,070)

of one standard deduction for a single taxpayer plus an amount

$2,305

$66,105

over

$4,117.26

(8.98%

x $66,105)

of income necessary to create a tax liability at the effective tax

rate on the composite return sufficient to offset one personal

7. Partners, shareholders, or members reporting income on

exemption. See line 6 for minimum filing requirements.

the composite return may also be subject to Iowa minimum

In addition, the above individuals should not be included if

tax. The Iowa minimum tax is imposed on most of the

they have incomes from Iowa sources other than from the

same tax preference and adjustment items treated as

partnership or other entity; these individuals are required to

exclusions for federal alternative minimum tax purposes.

file Iowa individual income tax returns.

Please see form IA 6251 to determine if any Iowa mini-

mum tax is due, and enclose completed form if necessary.

Line Instructions

9. The personal exemption credit for 2012 for each partner,

1. Each nonresident partner’s, shareholder’s, or member’s

shareholder, or member is $40.

Iowa K-1 will show that partner’s, shareholder’s, or

member’s income and nonresident modifications that are

10. Enter the total of the nonrefundable credits from Part I of

apportioned to Iowa. The apportioned amount of each item

the IA 148 Tax Credits Schedule. The IA 148 Tax Credits

of Iowa K-1 income that is a part of federal adjusted gross

Schedule must be enclosed.

income and the apportioned modifications of all

13. Enter the total amount of 2012 estimated tax payments and

nonresident partners, all nonresident shareholders, and/or

any of the prior year’s refund applied to your estimated

all members included in this composite return are to be

payments for 2012. Although estimated payments are not

totaled and entered on this line. Nonresidents with other

required, 2013 estimated payments may be made on form

Iowa-source incomes are not to be included on the

IA 1040ES using the partnership’s, limited liability

IA 1040C.

company’s, S corporation’s, or trust’s identification

Beneficiaries of a trust do not have an Iowa K-1, only a

number.

federal K-1. Consequently, when nonresident

14. Enter the total of the refundable credits from Part II of the

beneficiaries are included in the filing of a composite

IA 148 Tax Credits Schedule. The IA 148 Tax Credits

return with Iowa, they must total all income and/or

Schedule must be enclosed.

capital gain from real property or tangible personal

20. If you do not mail your return by the due date and at least

property located in Iowa and any other business income

90% of the correct tax is not paid, you owe an additional

attributable to Iowa and enter on this line.

10% of the tax due. If you file your return on time but do

2. A deduction is allowed in lieu of the deduction for federal

not pay at least 90% of the correct tax due, you owe an

tax paid and is based upon the following schedule:

additional 5% of the tax due. If a payment is needed to

Amount shown on line 1

Deduction

meet the 90% requirement, it may be sent with form

IA1040V using the partnership’s, limited liability

0 -

$49,999 =

No deduction

company’s, S corporation’s, or trust’s identification

$50,000 -

$99,999 =

5% of line 1

number.

$100,000 -

$199,999 =

10% of line 1

21. Interest is added at a rate of 0.4% per month beginning on

Over

$200,000 =

15% of line 1

the due date of the return and accrues each month until

payment is made.

3. For 2012 the standard deduction allowed is $1,860.00.

22. Payment may be made with form IA1040V using the

6. Use the tax rate schedule above to figure your tax on

partnership’s, limited liability company’s, S corporation’s,

composite Iowa taxable income. Also listed are the

or trust’s identification number.

minimum requirements for each tax rate.

ID Numbers

Enter preparer’s PTIN, and firm’s FEIN.

41-006b (10/24/12)

Form Ia 1040c - Composite Individual Income Tax Return - 2012 Page 2

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