Self-Employment / Household Employment / Other Federal Taxes

Line
28
Step
7
Step Subject
Federal Tax Addition and Deduction
Instruction Year
2019

Taxpayers can deduct their entire withholding, estimated payment, and additional federal tax paid amounts on line 31. 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 24.
  • Federal self-employment tax reported on the federal 1040, Schedule 2, line 4.
  • Unreported Social Security and Medicare tax on the federal 1040, Schedule 2, line 5.
  • Additional tax on IRAs and other qualified retirement plans reported on the federal 1040, Schedule 2, line 6.
  • Federal household employment tax reported on the federal 1040, Schedule 2, line 7a.
  • First-time homebuyer credit repayment reported on the federal 1040, Schedule 2, line 7b.
  • Additional Medicare tax from federal form 8959 reported on the federal 1040, Schedule 2, line 8a.
  • Other additional federal taxes reported on the federal 1040, Schedule 2, line 8c.

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 2019 in calculating the Iowa deduction for 2019. 

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.

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)

Go to Line 27 

Go to Line 29