6 FEDERAL TAX ADDITION AND DEDUCTION
27. FEDERAL INCOME TAX REFUND RECEIVED IN
If you received a refund of Federal
income tax during 2003, you must report the amount on this line. It must
be reported even if you used the standard deduction on the prior years
Iowa return. The Federal refund must be included on this line because you
benefit from being able to deduct Federal taxes paid on the prior year's
Iowa return which reduces your Iowa taxable income.
Include the following:
- The refund you received from your 2002
Federal tax return
- To find the amount you received,
check your records or call the IRS at 1-800-829-1040. This information
is not available from the Iowa Department of Revenue.
- Any refunds received in 2003 for other
years that were amended or filed late
- The Federal Advance Child Tax Credit
payment received in 2003
- Most Iowans received theirs in August
or September of 2003.
- To find out the amount of the
Federal Advance Child Tax Credit you received, check your records
or contact the Internal Revenue Service.
- This amount is not found
on your federal tax return.
If you chose to have any part of an
overpayment of Federal income tax credited to estimated tax payments for
2003, the amount should be claimed as 2003 estimated tax paid on line
32. The total Federal overpayment must also be reported on line 27.
A refund of Federal tax received in
2003 is not reported if the tax was not deducted from Iowa income in
a prior year.
Do not include the Federal refund in the following
- Do not include any part of the refund received
from earned income credit or additional child tax credit.
- You are filing an Iowa return for 2003 for the
first time because you moved into Iowa during the year. A refund of Federal
tax received in 2003 is not reported if the tax was not deducted from Iowa
income in a prior year.
- The refund you received was from a year in which
you did not take a deduction for the payment of Federal tax because your
income was less than the minimum amount for paying Iowa tax or your tax
for that year was calculated using the alternate tax computation.
- You were a nonresident for the tax year of the
refund and were not required to file an Iowa return for that year.
MARRIED SEPARATE FILERS: If
the refund received in 2003 was from a jointly filed Federal return,
it must be divided between the spouses in the ratio of the spouses
net incomes in the year for which the refund was issued. Example: A 2002
Federal refund received in 2003 would be prorated using the spouses
net incomes from the 2002 Iowa return.
of how to prorate)
Example of how
Wifes income is $10,500
Husbands income is $15,500
Federal refund: $1,200
Divide wifes income by total
income: $10,500 divided by $26,000 = 40%
The husbands income is, therefore, 60% of their combined income.
In this example, line 27 is $720 (60%)
of the Federal refund for the husband, and $480 (40%) of the Federal
refund for the wife.
Go to Line 26
Go to Line 28