Article: 50404
General Information
Iowa provides specific adjustments and credit opportunities for part-year residents and nonresidents with Iowa-source income or with income taxed by multiple jurisdictions.
This guide covers all three relevant screens:
- IA – 126 Nonresident and Part-Year Resident Credit
- IA – Credit for Taxes Paid to Another State
- IA – 130 Credit for Taxes Paid to Another State (Expanded)
These screens are found under both the General tab and the Credits tab in the Iowa section. Each screen must be added and saved individually.
All fields highlighted in green are override fields, meaning they overwrite data flowing from other parts of the return.
IA – 126 Nonresident and Part-Year Resident Credit
This screen is used to allocate income between Iowa and other states and determine the allowable Iowa credit for part-year or nonresidents.
IA – Credit for Taxes Paid to Another State
Use this screen to report taxes paid to another state or country that also taxed the same income Iowa is taxing.
IA – 130 Credit for Taxes Paid to Another State (Expanded)
This screen provides a more detailed version of the prior screen and is used to calculate the actual credit.
How to Add These Screens
- Click on the State Taxes section on the left-hand side of the screen.
- Click the link “I’d like to see the forms I’ve filled out or search for a form.”
- Use the drop list to select Iowa.
- Under the General tab, select IA – 126 Nonresident and Part-Year Resident Credit and IA – Credit for Taxes Paid to Another State.
- Under the Credits tab, select IA – 130 Credit for Taxes Paid to Another State.
- Complete the applicable screens.
- Click Save.
Further Information
For full details on Iowa’s part-year and nonresident filing rules and credit eligibility, visit:
Iowa Department of Revenue – Individual Income Tax:
https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax