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37. TOTAL ITEMIZED DEDUCTIONS
FROM FEDERAL SCHEDULE A.
|
Medical, Dental and Insurance Expenses |
Iowa follows Federal guidelines for Schedule A itemized deductions with certain exceptions. Enter the total amount of itemized deductions claimed on your Federal or Iowa Schedule A. To complete either the Federal or Iowa Schedule A, refer to the Federal 1040 instruction booklet. Attach your Iowa Schedule A or Federal Schedule A to your return. Taxpayers with Federal bonus depreciation must complete and attach the Iowa Schedule A.
MEDICAL, DENTAL AND INSURANCE EXPENSES
Schedule A, line 2:
Certain itemized deductions are allowed only to the extent that the deductions exceed a percentage of Federal adjusted gross income. These include medical and dental expenses that exceed 7-1/2% of Federal adjusted gross income, and job expenses and miscellaneous deductions allowed to the extent the deductions are greater than 2% of the taxpayer’s Federal adjusted gross income. The Federal adjusted gross income used to determine these deductions is the taxpayer’s Federal adjusted gross income plus any bonus depreciation adjustment from line 14 of the IA 1040.Health insurance premiums:
100% of the amount paid for health insurance premiums is deductible on line 18 of the IA 1040. It may be to your advantage to take this deduction on line 18 instead of Schedule A. Schedule A may not contain any health insurance premiums which were used as a deduction on line 18.
IF
AGI EXCEEDS $142,700
($71,350 if filing married separate for Federal
purposes)
If your adjusted gross income on line 35, Federal form 1040 (line 19, Federal form 1040A) plus any Iowa bonus depreciation adjustment from line 14 of the IA 1040 exceeds $142,700 ($71,350 if filing married separate for Federal purposes), you may not be able to deduct all of your itemized deductions. If your Federal adjusted gross income exceeds the above amounts, you must complete worksheet
IA 41-104 (fillable) to determine the amount to enter on line 39.
EXCEPTIONS TO FEDERAL SCHEDULE A
Federal bonus depreciation. Taxpayers with bonus depreciation must use Iowa Schedule A.
Health insurance premiums. 100% of the amount paid for health insurance premiums is deductible on line 18 of the IA 1040. It may be to your advantage to take this deduction on line 18 instead of Schedule A. Schedule A may not contain any health insurance premiums which were used as a deduction on line 18.
Mortgage Interest Credit Deduction. Taxpayers with the mortgage interest credit can claim on their Iowa return a deduction on line 9b of Schedule A for all mortgage interest paid in the tax year and not just the mortgage interest that was deducted on the Federal Schedule A.
Vehicle Registration Fee Deduction and Worksheet. If you itemize deductions, a portion of the automobile or multipurpose vehicle registration fee you paid in 2004 may be deducted as personal property tax on your Iowa Schedule A and Federal Schedule A, line 7. The worksheet is below.
This deduction is for registration fees paid on automobiles and multipurpose vehicles for 1993 and newer model years. Use the worksheet below to calculate your deduction.
Multipurpose vehicles are defined as motor vehicles designed to carry not more than 10 people and constructed on a truck chassis or with special features for occasional off-road use. If the letters MV are printed next to the word “style” on the registration certificate, the vehicle is a multipurpose vehicle and qualifies for this deduction.
Registration fees on the following vehicles are not deductible as an itemized deduction: pickups, motor trucks, work vans, ambulances, hearses, non-passenger-carrying vans, campers, motorcycles or motor bikes.
SUVs are deductible only if the letters MV are printed next to the word "style" on the registration certificate.
If your vehicle is model year 1992 or older, see line 40. Use the following worksheet to calculate the deductible
amount of 1993 or newer qualifying vehicles:
1. Enter the actual registration fee paid. 1. 2. Take the weight of your automobile and divide it by 250. The weight is found on your automobile registration certificate. 2. 3. Subtract line 2 from line 1. This is the deductible amount for line 37. 3. EXAMPLE
Lola purchased an automobile from Jennifer.
The actual fee Lola paid to register the automobile
at the courthouse was $150.
The weight of the automobile is 3,000 pounds.
The deductible amount is calculated as follows:
1. Enter the actual registration fee paid. 1. 150 2. Take the weight of your automobile and divide it by 250. The weight is found on your automobile registration certificate. 2. 12 3. Subtract line 2 from line 1. This is the deductible amount. 3. 138
The American Jobs Creation Act of 2004 allows individuals the option of claiming an itemized deduction of state income tax paid or state sales and use tax paid for the 2004 and 2005 tax year only for federal tax purposes.
For Iowa purposes, the itemized deduction for state sales and use tax paid is allowed only if the taxpayer claimed an itemized deduction for state sales and use tax paid on the federal return. If a taxpayer claimed state income taxes as an itemized deduction on the federal return, or claimed the standard deduction on the federal return, the taxpayer cannot claim an itemized deduction for state sales and use tax paid on the Iowa return. In addition, if taxpayer claims the itemized deduction for state sales and use tax paid on the federal return, taxpayer cannot claim an itemized deduction for the school district surtax and EMS surtax on the Iowa return.
If you used Iowa Schedule A, enter the totals from line 29 and line 30, Iowa Schedule A, in Columns A and B on line 39 of the IA 1040.
If you used Federal Schedule A, you should prorate your itemized deductions between you and your spouse in the ratio of each spouse’s net income on line 26, IA1040 to the total net income of both spouses. (However, this allocation of itemized deductions should be done after any Iowa income tax is subtracted from the total itemized deductions claimed on Federal Schedule A.)
Line 38 and line 40 of the IA 1040 should also be divided between husband and wife in the ratio of their respective net incomes.