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Iowa Dividends

Article ID: 59618 Email Print
Question
Do I claim dividends on my Iowa return?

Answer

Add all dividends from mutual funds, investment trusts, or regulated investment companies investing in state and municipal bonds.

Deduct that portion of any net dividends from a mutual fund, investment trust, or regulated investment company that is attributable to Federal securities. You cannot take this deduction unless you are provided a statement from the fund giving the percentage of net dividends attributable to Federal securities. A copy of the statement must be attached to the return to take this deduction.

Interest income from repurchase agreements involving Federal securities cannot be deducted.

Dividends from certain Iowa state and municipal securities are exempt from Iowa tax and should not be included on this line.

The following securities are exempt. This list is taken from Iowa rule 40.2 and 40.3.

  • Aviation Authority Bonds, Iowa Code Section 330A.16
  • Beginning Farmer Loan Program Bonds, Iowa Code Section 175.17
  • Community College Bond Program Bonds, Iowa Code Section 260C.71(6)
  • Community College Residence Halls and Dormitories Bonds, Iowa Code Section 260c.61
  • County Health Center Bonds, Iowa Code Section 331.441(2)"C"(7)
    E911 Emergency Telephone Service Program Bonds, Iowa Code Section 34A.20(6)
  • Interstate Bridges Bonds, Iowa Code Section 313A.36
  • Iowa Board of Regents Bonds for buildings and facilities, Iowa Code Chapters 262.41, 262.51 and 262.60
  • Iowa College Super Savings Plan Bonds, Iowa Code Chapter 262A
  • Iowa Higher Education Loan Authority, Iowa Code Section 261A.27
  • Iowa Municipality Urban Renewal Bonds, Iowa Code Section 403.9(2)
  • Iowa Rural Water District Revenue Bonds and notes, Iowa Code Section 357A.15
  • Local Government Flood Damage Program, Iowa Code Section 16.183(4)
  • Low Income Housing Bonds, Iowa Code Section 403A.12
  • Municipal Investment Recovery Bonds, Iowa Code Section 16.173(4)
  • Prison Infrastructure Revenue Bonds, Iowa Code Section 16.177(8)
  • Regents Institutions Medical and Hospital Buildings at University of Iowa Bonds, Iowa Code Section 263A.6
  • Soil Conservation Districts Revenue Bonds, Iowa Code Section 161A.22
  • Quad Cities Interstate Metropolitan Authority Bonds, Iowa Code Chapter 28A.24
  • Sewage Treatment Works Revenue Bonds, Iowa Code Section 16.131(6)
  • Underground Storage Tank Fund Revenue Bonds, Iowa Code Section 455G.6(14)
  • Vision Iowa Program, Iowa Code Section 12.71
  • Warehouse Project Revenue Bonds, Iowa Code Chapter 123.159
  • Aviation Authority Bonds, Iowa Code section 330A.16
  • Beginning Farmer Loan Program Bonds, Iowa Code section 16.64
  • Community College Bond Program Bonds, Iowa Code section 260C.71(6)
  • Community College Residence Halls and Dormitories Bonds, Iowa Code section 260C.61
  • County Health Center Bonds, Iowa Code section 331.441(2)"C"(7)
  • E911 Emergency Telephone Service Program Bonds, Iowa Code section 34A.20(6)
  • Interstate Bridges Bonds, Iowa Code section 313A.36
  • Iowa Board of Regents Bonds for buildings and facilities, Iowa Code Chapters 262.41, 262.51, 262.60 and 262A.8
  • Iowa Higher Education Loan Authority, Iowa Code section 261A.27
  • Iowa Municipality Urban Renewal Bonds, Iowa Code section 403.9(2)
  • Iowa Rural Water District Revenue Bonds and notes, Iowa Code section 357A.15
  • Low Income Housing Bonds, Iowa Code section 403A.12
  • Prison Infrastructure Revenue Bonds, Iowa Code section 16.177(8)
  • Regents Institutions Medical and Hospital Buildings at University of Iowa Bonds, Iowa Code section 263A.6
  • Soil Conservation Districts Revenue Bonds, Iowa Code section 161A.22
  • Quad Cities Interstate Metropolitan Authority Bonds, Iowa Code chapter 28A.24
  • Sewage Treatment Works Revenue Bonds, Iowa Code section 16.131(6)
  • Underground Storage Tank Fund Revenue Bonds, Iowa Code section 455G.6(14)
  • Vision Iowa Program, Iowa Code section 12.71
  • IA Utilities Board and Consumer Advocate Building Bonds, IA Code section 12.91(9)
  • Honey Creek Premier Destination Park Bonds, IA Code section 463C.12(8)
  • School Infrastructure Program Bonds, IA Code section 12.81(8)
  • Appropriation Bonds, IA Code section 12.87(8)

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

  • Jointly held: Divide equally.
  • Held in the name of only one spouse: Allocate dividends wholly to that spouse.

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Article Details
Views: 582 Created on: Jun 15, 2013
Date updated: Dec 17, 2018
Posted in: States, Iowa

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