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: Baby-sitting income not reported on federal Schedule C or C-EZ.
- Baby-sitting income not reported on federal Schedule C or C-EZ.
- NONCONFORMITY ADJUSTMENT: Expensing and depreciation adjustment from the IA 4562A and the IA 4562B; include the IA 4562A and the IA 4562B with your return.
- Capital gain from installment sales in 2017: Accrual-method taxpayers may use the installment method for reporting capital gain on their Iowa returns.
- College Savings Iowa or Iowa Advisor 529 Plan: Amounts received from the cancellation of a participation agreement or other non-qualifying withdrawal to the extent the amount was previously deducted on the IA 1040. Beginning January 1, 2018, qualifying withdrawals may include up to $10,000 per beneficiary per year for tuition expenses of attending an accredited elementary or secondary (K-12) school in Iowa. The $10,000 per-beneficiary cap applies even if the beneficiary receives money from multiple College Savings Iowa or Iowa Advisor 529 Plan accounts. The $10,000 annual cap does not apply to withdrawals used to pay qualified education expenses related to higher education.
- Director's fees.
- Drilling: Intangible drilling costs that were reported on federal form 6251.
- Executor's fees.
- First-time homebuyers account non-qualifying withdrawals. Non-qualifying withdrawals from your Iowa First-time Homebuyer Savings Account that were previously deducted on the IA 1040 must be added back on this line, along with any applicable penalty. Non-qualified withdrawals required to be added back here are assessed a penalty equal to 10% of the amount of the withdrawal, unless the non-qualifying withdrawal was made by reason of the death of the account holder or certain other circumstances. If an account holder makes a non-qualifying withdrawal, they are not permitted to claim a deduction for any future contribution to any First-time Homebuyer Savings Account. All withdrawals (qualifying and non-qualifying) from your First-time Homebuyer Savings Account must be reported to the Department on the Iowa First-Time Homebuyer Savings Account Withdrawal Form within 90 days of the date of withdrawal.
- Partnership income and / or S corporation income: Modifications that increase the income reported on line 10 of the IA 1040.
- Refundable Iowa tax credits received in 2018 which were included as income on the federal 1040 must be added back.
- Refunds: State income tax refunds other than Iowa to the extent that the tax refunded in 2018 was deducted on a prior Iowa return.
- Wells: Percentage depletion from an oil, gas, or geothermal well that was reported on federal form 6251.
- Other income as reported on the federal form 1040, Schedule 1, line 21. Enter taxable income not reported on lines 1-13. Do not include any federal net operating loss adjustment. NONCONFORMITY ADJUSTMENT: Do not include any limitation on business losses adjustment from federal form 461, line 16. However, the limitation on excess farm losses for noncorporate taxpayers in Internal Revenue Code section 461(j) still applies for Iowa tax purposes. For more information, see 2017 federal Schedule F instructions and its accompanying excess farm loss worksheets. Enter any farm loss limitation adjustments here.
- Net Premium Tax Credit / Health Coverage Tax Credit: The Net Premium Tax Credit from line 69 of the 2017 federal 1040 and the Health Coverage Tax Credit from line 73c of the 2017 federal 1040 will be reported as Other Income on line 14 of the 2018 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 this line and line 18 of the IA 1040 set forth the Department’s guidance for the correct reporting of these amounts.
- Iowa ABLE Savings Plan. Amounts received from cancellation of accounts or other non-qualifying withdrawal to the extent the amount
was previously deducted on the IA 1040.
- NONCONFORMITY ADJUSTMENT: Employer-provided transportation expenses (employer-provided bus passes, bicycle commuting reimbursements, and 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 2018, the maximum Iowa exclusion for mass transit was $135 per month. Taxpayers whose employer reimbursed them (up to $20 per month) for bicycle commuting expenses may subtract those reimbursements from their Iowa income to the same extent such reimbursements would have been excluded from income prior to the federal Tax Cuts and Jobs Act.
- NONCONFORMITY ADJUSTMENT: IA 8824 worksheet, like-kind exchange of personal property.
- NONCONFORMITY ADJUSTMENT: Student loan debt discharged due to death or permanent disability. Iowa has not conformed to the exclusion from income of student loan debt amounts forgiven because of death or permanent disability in section 11031 of the federal Tax Cuts and Jobs Act. Amounts excluded from federal income under that provision must be added back to Iowa income here.
- NONCONFORMITY ADJUSTMENT: IA 4684 worksheet, casualty or theft gains reconciliation.
- NONCONFORMITY ADJUSTMENT: IA 3903 moving expense worksheet from line 8a.
- NONCONFORMITY ADJUSTMENT: Business interest expense limitation. Section 13301 of the federal Tax Cuts and Jobs Act imposes new limitations on the deduction of business interest expenses for certain taxpayers. These new limitations are calculated on federal form 8990. Iowa has not conformed to section 13301 of the federal Tax Cuts and Jobs Act. Calculate your 2018 Iowa interest expense based on the federal calculation that was applicable in tax year 2017. For general information on the deduction of business interest, see 2017 IRS Publication 535. Enter any business interest expenses limitation adjustment here.
- NONCONFORMITY ADJUSTMENT: Business entertainment and qualified fringe benefit expenses. Section 13304 of the federal Tax Cuts and Jobs Act disallows an employer deduction for business expenses related to entertainment, amusement, or recreation, even if such expenses are directly related to the conduct of a taxpayer’s business. It also modifies the employer deduction for meal expenses and generally disallows an employer deduction for expenses related to the provision of qualified transportation fringe benefits or employee reimbursements for certain commuting expenses. Iowa has not conformed to section 13304 of the federal Tax Cuts and Jobs Act. Employer deductions for these expenses are allowed for Iowa purposes to the same extent allowed in tax year 2017 for both federal and Iowa purposes. Enter any business entertainment and qualified fringe benefit expense adjustment here.
- NONCONFORMITY ADJUSTMENT: IA 2106 employee business expenses worksheet from line 8.
- NONCONFORMITY ADJUSTMENT: Other nonconformity adjustments. See 2018 Iowa nonconformity adjustments worksheet.
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.