3. DIVIDEND INCOME. Attach a copy of your Federal or Iowa Schedule B if your Iowa taxable dividends are more than $1,500. Report the same dividends as you reported on your Federal return with the following modifications:

a. Add all dividends from mutual funds, investment trusts, or regulated investment companies investing in state and municipal bonds.

b. Deduct that portion of any net dividends from a mutual fund, investment trust, or regulated investment company that is attributable to Federal securities. You cannot take this deduction unless you are provided a statement from the fund giving the percentage of net dividends attributable to Federal securities. A copy of the statement must be attached to the return to take this deduction.

Interest income from repurchase agreements involving Federal securities cannot be deducted.

MARRIED SEPARATE FILERS: Divide dividends based on registered ownership of stock. a. Jointly held: Divide equally. b. Held in the name of only one spouse: Allocate dividends wholly to that spouse.