14. OTHER INCOME.
Enter taxable income not reported on lines
1-13. Attach an explanation of the type of income. Examples of income to be
reported on line 14 include:
a. Baby-sitting income not reported
on Federal Schedule C or C-EZ.
b. Capital gains from installment sales
in 2002: Accrual-method taxpayers may now use the installment method
for reporting capital gains on their Iowa returns.
c. Cow-Calf refunds received in
2002 (unless reported on Federal Schedule F).
d. Directors fees
e. Drilling: Intangible drilling
costs that were reported on Federal form 6251 less any amounts amortized
in the tax year.
f. Executors fees
g. Gambling winnings: You must
report the full amount of gambling winnings. Report any tax withheld
61 of the IA1040. If you had any gambling losses, you may take them
as an itemized deduction on the Iowa Schedule A, line 24, but you cannot
deduct more than the
winnings you report. If you use the Federal Schedule A, report losses on
line 27 of that form.
Educational Savings Plan Trust: Income received from the cancellation
of a participation agreement to the extent the amount was previously
deducted on line 24
of the IA 1040.
i. Partnership income and/or S Corporation
income: Modifications that increased the income.
j. Refunds: State income tax refunds
other than Iowa to the extent that the tax refunded in 2002 was deducted
on a prior Iowa return.
k. Wells: Percentage depletion from
an oil, gas or geothermal well that was reported on Federal form 6251.
l. Other income as reported on line
21 of the Federal 1040.
|MARRIED SEPARATE FILERS: The
spouse to whom the income was paid must report that income. Modifications
to partnership and/or S Corporation income are allocated between spouses
in the same manner as that income was divided on
line 10, IA1040.
Iowa did not couple with
the following provisions of the
Federal Job Creation and Worker Assistance Act:
a. Bonus Depreciation
Iowa did not adopt the bonus depreciation
provisions for assets placed in service on or after September 11, 2001. An
adjustment will have to be made on form
IA 4562A to account for the difference between the Federal depreciation
and the Iowa depreciation. The total adjustment for decoupling as calculated
on line 5 of the IA 4562A should be entered on line
14 of the IA 1040 as other income. This amount may need to be added back
on several lines or schedules. Attach the IA 4562A to your income tax
When figuring your gross income on the
IA 1040, you will enter the same figures as on the equivalent lines from
the Federal 1040. However, the bonus deprecation adjustment will then be
entered on line 14 of the IA 1040 to reflect the effect of decoupling on
this issue. Lines 5,
10, and 11
of the IA 1040, which may be impacted by the bonus depreciation issue, will
still be the same as the equivalent Federal 1040 entries.
Finally, the bonus depreciation adjustment
on line 14 of the IA 1040 may need to be added back on several other schedules
or line entries.
b. Net Operating Losses
Iowa did not adopt the provisions for the
5-year carryback for net operating losses incurred in 2001 and 2002. Therefore,
Iowa net operating losses will still be carried back two years, except for
losses incurred in presidentially declared disaster areas (3-year carryback)
and losses incurred by farm corporations (5-year carryback).
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