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Iowa Additional Federal Tax Paid for Prior Year

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Iowa Additional Federal Tax Paid for Prior Year

Answer

Additional Federal Tax Paid in 2019 for 2018 and Prior Years

A. Additional Tax to Enter

Enter the amount of additional federal income tax paid during 2019 for tax year 2018 and any other years before 2018. The amount of additional federal income tax paid is deductible only if Iowa income tax returns were required to be filed for the year for which the additional federal income tax was paid.

Include only the actual federal tax payments made in 2019, but DO NOT include the following:

  • penalties
  • interest 

Federal income tax includes the net investment income tax on federal form 8960 and any payments made in 2018 associated with federal section 965 net tax liability.

Taxpayers can deduct their entire additional federal tax paid amount on line 31. However, certain amounts must be added back on line 28, including the following:

  • Excess advance premium tax credit repayment reported on the federal 1040, Schedule 2, line 24.
  • Federal self-employment tax reported on the federal 1040, Schedule 2, line 4.
  • Unreported Social Security and Medicare tax on the federal 1040, Schedule 2, line 4.
  • Additional tax on IRAs and other qualified retirement plans reported on the federal 1040, Schedule 2, line 6.
  • Federal household employment tax reported on the federal 1040, Schedule 2, line 7a.
  • First-time homebuyer credit repayment reported on the federal 1040, Schedule 2, line 7b.
  • Additional Medicare tax from federal form 8959 reported on the federal 1040, Schedule 2, line 8a.
  • Other additional federal taxes reported on the federal 1040, Schedule 2, line 8c.

Additional Medicare tax withholding from line 24 of federal form 8959, net investment income tax from federal form 8960, and federal section 965 net tax liability payments are not added back on line 28.

If a taxpayer has elected to pay federal section 965 net tax liability in installments for federal purposes, that taxpayer may only include the actual amount of the federal installment payment paid in 2019 in calculating the Iowa deduction for 2019. See Iowa Tax Reform Guidance: Deemed Repatriation of Deferred Foreign Income.


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Views: 519 Created on: Jun 15, 2013
Date updated: Dec 30, 2019
Posted in: States, Iowa

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