Enter taxable income not reported on lines 1-13. Include an explanation of the type of income.
NOTE: Your unemployment compensation exclusion should be reported on line 14 as a negative amount. The unemployment compensation exclusion should not be reported on line 24. See Code M below for additional guidance.
Examples of income to be reported on line 14 include:
- 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 2020: Accrual-method taxpayers may use the installment method for reporting capital gain on their Iowa returns.
- College Savings Iowa or Iowa Advisor 529 Plans: Amounts received from the cancellation of a participation agreement or other non-qualifying withdrawals to the extent the amount was previously deducted on the IA 1040. 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 or an out-of-state elementary or secondary school that educates a beneficiary who is a child “requiring special education” under Iowa Code section 256B.2. 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. For tax years beginning on or after January 1, 2019, qualifying withdrawals include withdrawals for certain expenses related to participation in an apprenticeship program and withdrawals, up to $10,000, used to pay either principal or interest on a qualified education loan on behalf of a beneficiary or a beneficiary’s sibling. If you withdrew funds from a 529 Plan to pay qualified higher education expenses and you received a refund of those funds, the refund amount is considered a qualifying withdrawal if it is recontributed to the same Iowa 529 Plan account from which it was withdrawn within sixty (60) of the date of the refund. To be a qualifying withdrawal, the recontribution amount cannot exceed the amount of the refund from the qualifying higher education institution.
- 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 the current tax year 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 the current tax year 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 8. Enter taxable income not reported on lines 1-13. Do not include any federal net operating loss adjustment. Enter the unemployment compensation exclusion amount allowed on federal form 1040, Schedule 1, line 8 as a negative amount, even if the IRS automatically adjusted your federal return. If you have filed your original Iowa tax return on or before June 1, 2021 and did not report your unemployment compensation exclusion amount, do not file an amended Iowa return only to claim this unemployment compensation exclusion. The Department will adjust your return for you. Filing an amended return may delay the adjustment process. If you are filing an Iowa return after June 1, 2021 the return must be filed reporting the unemployment compensation exclusion, as applicable. For married separate filers, see guidance below. Do not include unemployment compensation exclusion amounts related to unemployment compensation benefits paid by the Railroad Retirement Board.
- Net Premium Tax Credit / Health Coverage Tax Credit: The Net Premium Tax Credit from Schedule 3, line 9 of the 2019 federal 1040 and the Health Coverage Tax Credit from Schedule 3, line 13 of the 2019 federal 1040 will be reported as Other Income on line 14 of the 2020 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
- Other nonconformity adjustments. See IA 101 Nonconformity Adjustments Schedule. Include the IA 101 with your return.
- Any adjustment from IA 163 Interest Expense Adjustment resulting in a reduction to income. Include IA 163 with your return.
- Any adjustment from 2020 IA 163A Interest Expense Carryforward Adjustment. Include IA 163A with your return.
Married Separate Filers:
The spouse to whom the income was paid must report that income.
Modifications to partnership and S corporation income are allocated between spouses in the same manner as that income was divided on line 10, IA 1040.
Each spouse must report their qualifying unemployment exclusion amount from the federal Unemployment Compensation Exclusion Worksheet, line 8 or 9.