13. TAXABLE SOCIAL SECURITY BENEFITS. Iowa does not tax Social Security benefits in the same manner as the Internal Revenue Service. To compute the amount of Social Security benefits that are taxable to Iowa, complete the worksheet below.
The worksheet below
calculates the 2009 43% phase-out on Social Security benefits established
by the Iowa Legislature. For more information, see the 2006
Legislative Summary for SF 2408-C.
SOCIAL SECURITY WORKSHEET
This worksheet is available in fillable pdf format.
| 1. Enter
the amount from Box 5 of form(s) SSA-1099. If you filed a joint
federal return, enter the
totals for both spouses. Do not include Railroad Retirement benefits
from form RRB-1099 here. |
1. |
| 2. Enter one-half of line 1 amount. |
2. |
| 3. Add
amounts from the federal 1040 on lines 7, 8a, 9a, 10 through 14,
15b, 16b, 17 through 19, and 21, plus
one-half of any Railroad Retirement Social Security benefits from
RRB-1099.* If filing federal 1040A, use lines
7, 8a, 9a, 10, 11b, 12b, and 13, plus one-half of any Railroad Retirement
Social Security benefits from RRB-1099.
Include any bonus depreciation/section 179 adjustment from line 14 of the Iowa
1040 to compute correct amount. |
3. |
| 4. Enter
the amount from line 8b of your federal 1040 or 1040A. |
4. |
| 5. Add lines 2, 3, and 4. |
5. |
| 6. Enter
total adjustments from federal 1040, lines 23 through 32, plus
any write-in adjustments you
entered on the dotted line next to line 36. If filing federal 1040A,
use the total of lines 16 and 17. |
6. |
| 7. Subtract line 6 from line 5. |
7. |
|
8. Enter one of the following amounts based
on the federal filing status used on form 1040 or 1040A.
- Single, head of household, qualifying widow(er): enter $25,000.
- Married filing joint: enter $32,000.
- Married filing separate:
enter -0- if you lived with your spouse at anytime in 2009
or $25,000 if you did not live with your spouse at any time
in 2009.
|
8. |
| 9. Subtract
line 8 from line 7. If zero or less, enter -0-. If line 9 is zero,
none of the Social Security benefits are taxable. |
9. |
| 10. Enter one-half of line 9. |
10. |
| 11. Iowa
Taxable Social Security Benefits before Phase-out: Enter the smaller
of line 2 or line 10. |
11. |
| 12. Iowa
Taxable Social Security Phase-out: Multiply line 11 by 43% (.43). |
12. |
| 13. Iowa Taxable Social Security after
Phase-out (Reduced Iowa Taxable Social Security): Subtract line 12
from
line 11 and enter here and on line 13 of form IA 1040. |
13. |
* Iowa taxpayers who
received Social Security benefits in 2009 and claimed bonus depreciation/section 179 on their federal returns
may have
to recompute their taxable benefits on the worksheet.
Those who need to recompute the taxable Social Security benefits should add the adjustment from line 5 of Schedule IA 4562A to
the other amounts shown on line 3 of the Social Security Worksheet
from the federal return and the RRB 1099. The rest of the form is then
completed with the amounts normally used to complete the worksheet
from the federal 1040 or 1040A.
Include the following incomes or adjustments to income on line 3 if applicable.
(These were excluded from federal AGI.):
- foreign-earned income
- income excluded by residents of Puerto Rico or American
Samoa
- proceeds from Savings Bonds used for higher education and
- employer-provided adoption benefits.
Although Railroad Retirement benefits are not taxable, one-half of the benefits received must be used to determine the amount of Social Security benefits that are taxable to Iowa. For purposes of determining taxable Social Security benefits, you must also include interest from federal securities.
|
Married Separate Filers:
a. If both spouses received Social Security benefits, the taxable amount is allocated between the spouses in the ratio of the benefits received by one spouse to the total benefits received. (Examples of how to prorate)
b. If only
one spouse received benefits, that spouse will report the portion
of the benefits that is taxable.
|
Go to Line 12
Go to Line 14 |
