6 FEDERAL TAX ADDITION AND DEDUCTION.
27. FEDERAL INCOME
TAX REFUND/OVERPAYMENT RECEIVED IN 2009.
you received a refund of federal income tax during 2009, 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 benefited
from being able to deduct federal taxes on the prior year's Iowa
return, which reduced your Iowa taxable income for that year.
The amount reported on this line should not exceed the total amount of any federal
tax deduction taken on the prior year(s) Iowa return.
Include the following:
If you chose to
have any part of an overpayment of federal income tax credited to
estimated tax payments for 2009, the amount
should be claimed as 2009 estimated
tax paid on line 32. The total federal
overpayment must also be reported on line 27.
Do NOT include
the federal refund in the following situations:
- Do not include any part
of the refund received from Earned Income Tax Credit, Additional
Child Tax Credit, or First-time Homebuyer Credit.
- You are filing an Iowa
return for 2009 for the first time because you moved into Iowa during
the year. A refund of federal tax received in 2009 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.
- The $250 federal payment made to Social Security recipients, veterans, and railroad retirees in 2009.
Married Separate Filers: If
the refund received in 2009 was from a jointly-filed federal
return, it must be divided between spouses in the ratio
of the spouses net
incomes in the year for which the refund was issued.
A 2008 federal refund received in 2009 would be prorated using
the spouses net incomes from the 2008 Iowa return.
NOTE: For purposes
of reporting on line 27, the refund must be prorated in this
manner even if the refund itself was divided between spouses
in some other way, either by mutual agreement or other requirement.
(Examples of how to prorate)
Example of how to prorate:
income is $10,500
Spouses income is $15,500
Federal refund: $1,200
income by total income: $10,500 divided by $26,000 = 40%
The spouses income is, therefore, 60% of their combined
In this example, line
27 is $720 (60%) of the federal refund for the spouse, and $480
(40%) of the federal refund for you.
Go to Line 26
Go to Line 28