STEP 4 GROSS INCOME
If using filing status 3 (married filing
separately on a combined return), complete both columns A and B of
the IA1040. All other filing statuses complete only column A (you or
All taxpayers including nonresidents
report income from all sources (unless specifically exempt,
such as U.S. Treasury interest) for the entire year in this section.
Note: As a result of Federal legislation,
the nonresident military taxpayer does not include military pay on
line 1 of the IA 1040 (nor is it reported on the IA 126). In general, this applies to active duty military and does not include the National
Guard or reserve personnel.
NONRESIDENTS and PART-YEAR RESIDENTS must also complete
Iowa Schedule IA126. Report only
Iowa-source income on the Schedule IA126,
lines 1-26. This schedule will result in a credit for the amount of
tax based on income earned outside of Iowa.
WAGES, SALARIES, TIPS, ETC. Report the same W-2 income
as shown on your Federal income tax return, including military
income. See line 24, item "o",
for allowable military adjustments.
Married Separate Filers:
W-2 income is reported by the spouse earning the income.
to Line 2