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 (line 26 of the IA 126) is $1,000 or more. To understand "Iowa-source income," see the instructions for lines 1-26 of the 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 12 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.