![]() ![]() If you itemize deductions, a portion of the automobile or multipurpose vehicle annual registration fee you paid in 2021 may be deducted as personal property tax on your Iowa Schedule A, line 6, and federal form 1040, Schedule A, line 5c. Vehicle Registration Fee Deduction and Worksheet Line 6: Enter personal property taxes as allowed on federal form 1040, Schedule A, line 5c. Line 5: Enter real estate taxes as allowed on federal form 1040, Schedule A, line 5b. General sales taxes paid are available as an itemized deduction for 2021 on the Iowa Schedule A, only if you itemized at the federal level and elected to deduct general sales taxes on your federal return. You cannot deduct taxes you paid for someone else. You cannot deduct Social Security, Medicare, federal unemployment (FUTA), or railroad retirement (RRTA) taxes. Note: If you received a refund in 2021 of previously deducted state and local taxes, you must add the refund back as other income, line 14 of the IA 1040. Taxes withheld or paid to other states or local taxing authorities are included. The School District Surtax and the Emergency Medical Services Surtax are deductible on the Iowa return. Iowa state income tax is not deductible on the Iowa return. ![]() Line 4: Enter other state and local income taxes (not including Iowa state income taxes) on line 4a, OR general sales taxes on line 4b, as allowed on the federal form 1040, Schedule A, line 5a. Taxpayers may deduct all eligible state and local taxes paid, independent of the federal dollar limitation. The $10,000 ($5,000 if married filing separately) federal cap on the itemized deduction for state and local taxes calculated on federal form 1040, Schedule A, line 5e, does not apply for Iowa purposes. Enter the result, or if less than zero, enter zero. Your federal adjusted gross income is the amount from federal form 1040, line 11, as modified by any Iowa net income nonconformity adjustments from line 14 of the IA 1040 including any depreciation/section 179 adjustments, if any.Įnter the result, or if less than zero, enter zero. Line 2: Multiply federal adjusted gross income by 7.5% (.075). The Iowa expanded instructions for lines 14 and 18 of the IA 1040 set forth the Department’s guidance for the correct reporting of these amounts. However, if the deduction is taken on line 18 of the IA 1040, then the IA 1040, rather than the Iowa Schedule A, must reflect the impact of the federal excess advance premium tax credit repayment and the net premium tax credit. If the health insurance deduction is taken on the Iowa Schedule A, then the federal tax guidance should be followed when addressing the complications due to the impact of the federal excess advance premium tax credit repayment and the net premium tax credit. The Iowa return allows a deduction for qualifying health insurance premiums on line 18 of the IA 1040, rather than reporting those same premiums as a medical expense deduction on the Iowa Schedule A for Iowa Itemized Deductions. The IA 1040 departs from the federal 1040 in the treatment of health insurance premiums by allowing taxpayers to elect to deduct qualifying health insurance premiums as an adjustment to Iowa gross income. If health insurance premiums were used as a deduction on line 18 of the IA 1040, they cannot be used on the Iowa Schedule A. It may be to your advantage to take this deduction on line 18 of the IA 1040 instead of the Iowa Schedule A. 100% of the amount paid for health insurance premiums paid for with post-tax dollars is deductible on line 18 of the IA 1040. Line 1: Enter medical and dental expenses as allowed on federal form 1040, Schedule A, line 1, less the amount reported as health insurance on line 18 of the IA 1040. The federal Schedule A cannot be used with the Iowa return. Include your Iowa Schedule A with your return. If you itemize, complete the Iowa Schedule A, check the "itemized" box on line 37 and enter your total itemized deduction. The Iowa standard deduction can not include the additional charitable contributions deduction as allowed on federal form 1040, line 12b. Standard Deductionįor tax year 2021, the standard deduction is:įiling Status 3 or 4: $2,130 for each spouse Taxpayers may still deduct eligible state and local taxes paid, independent of the federal dollar limitation. The $10,000 federal cap on the itemized deduction for state and local taxes does not apply for Iowa purposes. A number of adjustments and separate Iowa calculations are necessary to determine the correct deduction. You must complete the Iowa Schedule A to itemize deductions on the Iowa return. You may itemize deductions on your Iowa return even if you did not itemize deductions on your federal return. ![]() You may itemize deductions or claim the Iowa standard deduction, whichever is larger. ![]()
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