6 FEDERAL TAX ADDITION AND DEDUCTION
27. FEDERAL INCOME TAX REFUND RECEIVED IN 2004.
you received a refund of Federal income tax during 2004, 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:
If you chose to have
any part of an overpayment of Federal income tax credited to estimated
tax payments for 2004, the
amount should be claimed as 2004 estimated tax paid on line
32. The total Federal overpayment must also be reported on line 27.
refund of Federal tax received in 2004 is not reported if the tax was not deducted from Iowa income in a prior
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 2004 for the first
time because you moved into Iowa during the year. A refund of Federal tax
received in 2004 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 2004 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 2003
Federal refund received in 2004 would be prorated using the spouses net
incomes from the 2003 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