Do I Need To File an Iowa Income Tax Return?
Nonresidents must file an Iowa income tax return (IA 1040) if their net income from Iowa sources is $1,000 or more. To understand "Iowa-source income," see the instructions on IA 126 . Common examples of Iowa-source income include:
Wages earned in Iowa
- Income from Iowa property
- rental income
- capital gain on the sale of property
- Self employment income earned while working in Iowa
- Iowa unemployment benefits
- Iowa gambling winnings
- Income from pass-through entities, such as partnerships and S-corporations
Nonresidents must also file an Iowa return if they are subject to Iowa lump-sum tax or Iowa minimum tax, even if Iowa-source income is less than $1,000.
If Iowa-source income is $1,000 or more, a nonresident isn't required to file IF:
- All-source net income (line 26 of the IA 1040) is less than $9,000* and their filing status is single. ($24,000* if 65 or older )
- All-source net income (line 26 of the IA 1040) is less than $13,500* and their filing status is other than single. ($32,000* if either spouse is 65 or older)
* In meeting the filing requirements above, you must add back:
- the pension exclusion (line 21, IA 1040)
- the Social Security Phase-out amount from line 11 of the Iowa Social Security Worksheet
- any amount of lump sum distribution separately taxed on federal form 4972, and
- any net operating loss carryover
NOTE to married couples: Incomes of both spouses must be included when determining who must file.