Enter the federal estimated income tax payments made in 2018. You may include the credit applied from your 2017 federal income tax overpayment only if the overpayment is included on line 27. You can deduct only the federal estimated income tax payments made during calendar year 2018.
For example, include a federal estimated income tax payment for 2017 paid in January 2018, but not an estimated tax payment for 2018 paid in January 2019.
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 estimated payment amount on line 32. 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 46.
- Federal self-employment tax reported on the federal 1040, Schedule 4, line 57.
- Unreported Social Security and Medicare tax on the federal 1040, Schedule 4, line 58.
- Additional tax on IRAs and other qualified retirement plans reported on the federal 1040, Schedule 4, line 59.
- Federal household employment tax reported on the federal 1040, Schedule 4, line 60a.
- First-time homebuyer credit repayment reported on the federal 1040, Schedule 4, line 60b.
- Individual responsibility payment reported on the federal 1040, Schedule 4, line 61.
- Additional Medicare tax from federal form 8959 reported on the federal 1040, Schedule 4, line 62a.
- Other additional federal taxes reported on the federal 1040, Schedule 4, line 62c.
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 2018 in calculating the Iowa deduction for 2018.
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Married Separate Filers: All federal estimated tax payments made in 2018 are divided between spouses in the same ratio as their incomes not subject to federal withholding for the 2018 tax year.
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