Other Income, Bonus Depreciation / Section 179 Adjustment

Line
14
Step
5
Step Subject
Gross Income
Instruction Year
2017

Enter taxable income not reported on lines 1-13. Include an explanation of the type of income. Examples of income to be reported on line 14 include:

  1. Baby-sitting income not reported on federal Schedule C or C-EZ.
  2. Expensing and depreciation adjustment from the IA 4562A and the IA 4562B; include the IA 4562A and the IA 4562B with your return.
  3. Capital gain from installment sales in 2017: Accrual-method taxpayers may use the installment method for reporting capital gain on their Iowa returns.
  4. College Savings Iowa (Iowa Educational Savings Plan Trust) or Iowa Advisor 529 Plan: Income received from the cancelation of a participation agreement to the extent the amount was previously deducted on line 24 of the IA 1040.
  5. Director's fees.
  6. Drilling: Intangible drilling costs that were reported on federal form 6251.
  7. Executor's fees.
  8. Reserved for future use.
  9. Partnership income and / or S corporation income: Modifications that increase the income reported on line 10 of the IA 1040.
  10. Refundable Iowa tax credits received in 2017 which were included as income on the federal 1040 must be added back.
  11. Refunds: State income tax refunds other than Iowa to the extent that the tax refunded in 2017 was deducted on a prior Iowa return.
  12. Wells: Percentage depletion from an oil, gas, or geothermal well that was reported on federal form 6251.
  13. Other income as reported on line 21 of the federal 1040. Do not include any federal NOL adjustment.
  14. Net Premium Tax Credit / Health Coverage Tax Credit:  The Net Premium Tax Credit from line 69 of the 2016 federal 1040 and the Health Coverage Tax Credit from line 73c of the 2016 federal 1040 will be reported as Other Income on line 14 of the 2017 IA 1040.  The Net Premium Tax Credit and the Health Coverage Tax Credit are reportable income to the extent these credits were a reimbursement for health insurance premiums deducted from Iowa income in a prior year.

    The Iowa 1040 departs from the federal 1040 in the treatment of health insurance premiums by allowing taxpayers to elect to deduct qualifying health insurance premiums as an adjustment to Iowa gross income.  The Iowa return allows a deduction for health insurance premiums on line 18 of the IA 1040, rather than reporting those same premiums as a medical expense deduction on the IA 1040 Schedule A for Iowa Itemized Deductions. 

    If the deduction is taken on the IA 1040 Schedule A, then the federal tax guidance should be followed when addressing the complications due to the impact of the federal excess advance premium tax credit repayment, the net premium tax credit, and the health coverage tax credit.

    However, if the deduction is taken on line 18 of the IA 1040, then the IA 1040, rather than the Iowa Schedule A, must reflect the impact of the federal excess advance premium tax credit repayment, the net premium tax credit, and the health coverage tax credit.  The Iowa expanded instructions for lines 14 and 18 of the IA 1040 set forth the Department’s guidance for the correct reporting of these amounts.  

  15. Iowa ABLE Savings Plan: Income from cancellation of accounts or other non-qualifying withdrawal to the extent the amount was previously deducted on line 24 of the IA 1040.

  16. Employer-provided transportation expenses (employer-provided bus passes, parking, and mass transit benefits): employees who used pretax dollars to pay for mass transit must add back to their Iowa taxable income the amount they excluded for federal purposes that is above the maximum Iowa exclusion. For tax year 2017, the maximum Iowa exclusion for mass transit was $135 per month.

Married Separate Filers:

The spouse to whom the income was paid must report that income. Modifications to partnership and / or S corporation income are allocated between spouses in the same manner as that income was divided on line 10, IA 1040.

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