Business Income / (Loss)

Step Subject
Gross Income
Instruction Year

Report the net business income or loss from federal Schedule C or C-EZ. Include a copy of the federal schedule.

The IA 4562A&B (pdf) may need to be completed if the taxpayer claimed depreciation or section 179 deductions on the federal return.

Iowa has not conformed to most recent federal tax changes related to business income/loss. Nonconformity adjustments to business income/loss are reported on IA 1040, line 14. Common adjustments include but are not limited to Iowa modifications for business interest expense limitations, entertainment expense limitations, loss limitations, and like-kind exchanges of personal property.

If one spouse has a loss, the couple may want to determine if filing status 2 is to their advantage.

Schedule C filers may need an Iowa Sales Tax Permit. Businesses selling taxable products or performing taxable services must have a permit to properly collect and remit sales tax.

Military Spouses

See Military Spouses Residency Relief Act


Married Separate Filers:

Reported by the spouse deriving the income or loss.

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