Iowa income tax tables 20201/16/2024 ![]() Do not include income that was not taxed by Iowa. ![]() Line 1: Enter the income you received that was taxed by Iowa and taxed by the other state, local jurisdiction in another state, or foreign country. For more information, see the special instructions for minimum tax or lump-sum distribution tax at the end of these instructions, or in the IA 1040 expanded instructions. You must compute this credit separately for regular income tax, alternative minimum tax, and special lump-sum distribution tax. Alternative Minimum Tax or Lump-Sum Distribution Taxĭo not include any alternative minimum tax or special lump-sum distribution tax when computing this credit for regular income tax paid. When filing your IA 1040, include all IA 130 schedules, the income tax return you filed with the other state, local jurisdiction in another state, or foreign country, the supplemental schedule that was provided by your pass-through entity if you are claiming income taxes paid by your pass-through entity, and federal form 1116, Foreign Tax Credit, if you are claiming income taxes paid to a foreign country and it is required with your federal return. The credit or portion of the credit must not exceed the amount of the Iowa tax imposed on the same income that was taxed by the other state, local jurisdiction in another state, or foreign country. Separate IA 130s are not required for foreign taxes paid by mutual funds or other regulated investment companies. Individuals using filing status 3 (married filing separately on a combined return) or status 4 (married filing separate returns) must complete a separate IA 130 for the spouse for each state, local jurisdiction in another state, or foreign country. Filing RequirementsĬomplete a separate IA 130 for each state, local jurisdiction in another state, or foreign country. Nonresidents of Iowa may NOT claim this credit.Ĭaution: Shareholders of S corporations who have income from the corporation that was apportioned outside Iowa through a claim to the IA 134 S Corporation Apportionment Tax Credit may NOT claim an out-of-state credit on this S corporation income. ![]() Only income included on the IA 126 form and taxed by another state, local jurisdiction in another state, or foreign country, may qualify for this credit. Part-year residents of Iowa may claim this credit only if any income earned while an Iowa resident was also taxed by another state, local jurisdiction in another state, or foreign country. Only Iowa residents or part-year residents with an income tax liability in another state, local jurisdiction in another state, or foreign country may reduce their Iowa tax liability by claiming an Iowa Out-of-State Tax Credit. For more information, see the instructions below. 2020 Iowa Acts, House File 2641, Division XVII, modified the Iowa Out-of-State Tax Credit for tax years beginning on or after January 1, 2020, to allow Iowa residents to claim the credit for certain entity-level income taxes paid by a pass-through entity (partnership, S corporation, estate, or trust), or paid by a mutual fund or other regulated investment company. ![]()
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |