IA – Part-Year and Nonresident Guide | 1040.com®

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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

Location: Iowa General tab

This screen is used to allocate income between Iowa and other states and determine the allowable Iowa credit for part-year or nonresidents.

• Residency Section
  • Indicate the Residency Status for both taxpayer and spouse
  • Enter the Date Moved Into Iowa and/or Date Moved Out of Iowa, if applicable
• Income Allocation – Column B Iowa
  • Wages, salaries, tips
  • Interest, dividends, business income
  • Capital gains, rents, royalties
  • Farm income, gambling winnings, and other income
  • Self-employment tax deduction
  • Health insurance deduction
  • Iowa capital gain deduction
  • Other adjustments
• Optional Checkbox
  • Illinois resident tax withheld in error – check if applicable
• Force to Print
  • If line 26 is less than $1,000 and you still wish to file to claim a refund, check the box to force printing and override the default non-filing behavior. 

IA – Credit for Taxes Paid to Another State

Location: Iowa General tab

Use this screen to report taxes paid to another state or country that also taxed the same income Iowa is taxing.

What to Enter

• Select Taxpayer or Spouse
• Indicate the state or foreign country that also taxed the income 
  
• For part-year residents, answer whether the resident qualifies for the credit

IA – 130 Credit for Taxes Paid to Another State (Expanded)

Location: Iowa Credits tab

This screen provides a more detailed version of the prior screen and is used to calculate the actual credit.

• Part I: Iowa Source Income Taxed by Another State
  • Gambling winnings 
    
  • Other income (bonus depreciation, Section 179 adjustments, etc.) 
• Part II: Calculation of Credit
  • Income tax paid directly to the other state/country 
    
  • Income tax paid by a pass-through entity or mutual fund

Again, confirm whether a part-year resident qualifies for the credit using the Yes/No selector.

How to Add These Screens

1. Click on the State Taxes section on the left-hand side of the screen.
2. Click the link I’d like to see the forms I’ve filled out or search for a form.
3. Use the drop list to select Iowa.
4. Under the General tab, select IA – 126 Nonresident and Part-Year Resident Credit and IA – Credit for Taxes Paid to Another State.
5. Under the Credits tab, select IA – 130 Credit for Taxes Paid to Another State.
6. Complete the applicable screens.
7. Click Save.

Further Information

For full details on Iowa’s part-year and nonresident filing rules and credit eligibility, visit the Iowa Department of Revenue – Individual Income Tax: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax