Taxpayers can deduct their entire withholding, estimated payment, and additional federal tax paid amounts on lines 31, 32, and 33. 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.
It is acceptable to report on line 28 either the current year’s self-employment / household employment tax / other federal taxes or the prior year’s, as long as the reporting method is consistent from one year to the next.
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Married Separate Filers: Federal taxes attributable to a specific spouse are claimed by that spouse. For example, each spouse must claim his or her own federal self-employment tax. Federal taxes not attributable to any one spouse must be prorated between the spouses based on the net income of the year for which they are paying the federal tax. For example, the household employment taxes are divided between spouses in the ratio of their respective net incomes. (Examples of how to prorate) |