STEP 4 GROSS INCOME
If using filing status 3 (married filing
separately on a combined return), complete both columns A and B of
the IA 1040. All other filing statuses complete only column A (you
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.
NONRESIDENTS and PART-YEAR RESIDENTS must also complete
Iowa Schedule IA 126. Report
Iowa-source income on the Schedule IA
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.
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.
Married Separate Filers:
W-2 income is reported by the spouse earning the income.
to Line 2