Iowa Withholding Tax Booklet And Tax Tables - 2005 Page 6
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28Iowa Department of Revenue
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Taxable Compensation Not Subject to Iowa Withholding
Exemptions from Iowa withholding follow the guidelines of the Internal Revenue Service, with
the following exceptions:
o Domestic workers and clergy are generally excluded from Iowa tax withholding
requirements. However, if they anticipate an Iowa tax liability of $200 or more and are
not subject to withholding, they may be required to submit quarterly estimated payments.
o Interest and dividends are not subject to Iowa withholding.
o Wages of nonresidents engaged in film production or television production are not
subject to Iowa withholding tax if the withholding agent provides certain information to
the Department. This includes each nonresident employee’s name, permanent address,
Social Security Number, and estimated amounts the employee is to be paid. See "Other
nonresident income" for further information on entertainers/entertainment companies.
o Agricultural payments to nonresidents are exempt from Iowa withholding if the
withholding agent provides certain information to the Department about the sales of
agricultural commodities or products. The following information must be given:
• name, address, Social Security Number of each nonresident; payments made in the
calendar year to the nonresident; county or counties in which the nonresident worked,
owned or leased property, had products stored or livestock located.
• the type of agricultural commodities or products: commodity credit certificates, grain,
livestock, domestic fowl, or others.
• Note: Although these types of payments are not subject to Iowa withholding, they are
subject to Iowa income tax in most instances.
o Pension and retirement income exclusion (IA W-4P)
A partial exemption is provided for pensions, annuities, self-employed retirement plans, deferred
compensation, IRA distributions, and other retirement benefits to qualified individuals. The Iowa
Withholding Certificate For Pension or Annuity Payments (IAW-4P) form is to be completed by
recipients of these kinds of income payments to determine the amount of Iowa income tax
withheld.
Note: Social Security benefits are not included.
To qualify you must be 55 years of age or older, disabled or a surviving spouse of an individual
who would have qualified. The exemption is up to $12,000 for joint filers and up to $6,000 for
all other filing statuses.
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