Business Income / (Loss)

Step Subject
Gross Income
Instruction Year

Report the net business income or loss from federal Schedule C. 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.

Taxpayers who had to make adjustments for Iowa’s nonconformity to federal law in 2018 or 2019 may need to complete form IA 101 in 2020 and later years. See the IA 101 Nonconformity Adjustments form for more information.

For tax year 2020 and later, Iowa is not conformed to the business interest expense limitation in IRC section 163(j). See the IA 163 for more information.

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 and Use Tax Permit. Businesses selling tangible personal property, performing taxable services, or selling specified digital products must have a permit to properly charge, collect, and remit sales tax. View a list of taxable services in Iowa.

The Iowa Department of Revenue may require proof of any item listed on a return or schedule.

Military Spouses

Tax Responsibilities of Servicemembers and Their Spouses

Married Separate Filers:

Reported by the spouse deriving the income or loss.


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