Start For Free

Fast, Secure, and Always Accurate!

Back to List

Category: Iowa

Iowa Additions to Income

 

All income entered on your Federal return is carried to your Iowa state return. If you selected Married filing separate on a combined return as your filing status, income that is not already assigned will be split 50% to each spouse. To adjust the split, enter the amount to allocate to each spouse.

 

Taxable Interest Income

Include the same amounts of interest income reported on your federal return. For additional information pertaining to Iowa taxable interest income and modifications, please click here.

Note: Married Separate Filers: Divide interest income based on ownership of the account or certificate.  

1) Jointly held: Divide equally between spouses.

2) Held in the name of only one spouse: Allocate interest wholly to that spouse.

 

Ordinary Dividend Income

Report the same dividends as you reported on your federal return. For additional information pertaining to Iowa ordinary dividends and modifications, please click here.

Note: Married Separate Filers: Divide dividends based on registered ownership of stock.

a) Jointly held: Divide equally.

b) Held in the name of only one spouse: Allocate dividends wholly to that spouse.

 

Alimony Received

Include the same alimony as is shown on your federal return.

Note: Married Separate Filers: reported by the spouse who received the alimony.



Business Income/Loss

Report the net business income or loss from federal Schedule C or C-EZ. Attach a copy of the federal form. If one spouse has a loss, the couple may want to determine if filing status 2 is to their advantage.

Note: Married Separate filers: reported by the spouse deriving the income or loss.

 

Capital Gain (Loss)

Enter 100% of any capital gain or loss as reported on line 13 of your federal 1040. Iowa tax law generally follows federal guidelines on teh exclusion of the gain on the sale of a principal residence. Must include a federal Schedule D (will be sent with the return by TaxSlayer).

Note: Married Separate filers: taxpayers who filed separate federal returns should report capital gain or loss as reported for federal tax purposes. If a joint federal return was filed, each spouse must report capital gain on the basis of ownership of the property sold or exchanged. The combined net capital gain or loss must be the same as reported on the joint federal return.

 

Other Gain (Loss)

If you sold or exchanged assets used in a trade or business and completed federal form 4797, enter 100% of the gain or loss as shown on line 14 of the federal 1040. Must include a federal form 4797 (will be sent with the return by TaxSlayer).

Note: Married Separate filers: divide gains or losses based on ownership of the asset sold or exchanged.



Taxable IRA Distributions

Enter the amount of taxable IRA distributions as shown on your federal return. Taxpayers over 70 1/2 years old who made tax-free distributions to public charities must include the amount of those distributions on this line even though they were exempt for federal purposes. They may qualify as an itemized deduction on Schedule A.

Note: Married Separate filers: Taxable IRA distributions should be reported by the spouse whose name is on the account.



Taxable Pensions and Annuities

The same amounts of pensions and annuities are taxable for Iowa as are taxable on your federal return, except Railroad Retirement benefits paid by the Railroad Retirement Board and military retirement pay. These are not taxable on the Iowa return. Do not subtract any Iowa pension exclusion on this line.

Note: Married Separate Filers: The taxable portion of pensions and annuities is reported by the spouse who received the income.

 

Rents, Royalties, Partnerships, Estates, Etc.

Report the income or loss from federal Schedule E and include a copy with the state return (TaxSlayer will send a copy with the return).

Note: Married Separate filers: Divide income or loss from Schedule E based on ownership of the asset-producing income or partnership interest or individual named as beneficiary.



Farm Income (Loss)

Enter the income or loss from federal Schedule F and include a copy with the state return (TaxSlayer will send a copy with the return).

Note: Married Separate Filers: Farm income must be reported by the spouse who claims it for self-employment tax purposes on the federal Schedule SE. 

 

Unemployment Compensation

Enter the amount of unemployment compensation benefits that was taxable on your federal return, except for unemployment compensation and sickness insurance benefits paid by the Railroad Retirement Board.

Note: Married Separate Filers: If both spouses received unemployment benefits, each of the spouses should report the benefits received as shown on the 1099-G for each spouse.

  

For a list of Other Income to report within your Iowa state return, please see Other Income.