Include a copy of your federal or Iowa Schedule B if your Iowa taxable dividends are more than $1,500. Report the same ordinary dividends as you reported on line 3b of your federal return with the following modifications:
- 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 direct federal securities. You cannot take this deduction unless you are provided a statement from the fund giving the percentage of net dividends attributable to direct federal securities. If a return is filed on paper, a copy of the statement must be included with the return to take this deduction.
Interest income from repurchase agreements involving federal securities cannot be deducted.
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.