A. Enter the amount
of additional federal income tax paid during 2009 for tax year 2008
and any other years before 2008. The amount of additional federal
income tax paid is deductible only if Iowa income tax returns were
required to be filed for the year for which the additional federal
income tax was paid. Include only the actual federal tax payments
made in 2009, but DO NOT include the following:
- penalties
- interest
- excise tax on early withdrawal of qualified plans
REFUNDABLE CREDITS on
the federal 1040 may be included on
IA 1040, line 33, to the extent federal income tax was paid by applying the federal refundable credits, such as:
- Earned Income Tax Credit
- Additional Child Tax
Credit
- Others
(do not include the amount of any Recovery Rebate Credit)
Any refundable federal credits
(except the Recovery Rebate Credit)
that reduce federal income tax liability are allowed as a federal
tax deduction — up to the amount of the federal tax paid by
the refundable credits — on the Iowa return.
In determining the order
of applying the refundable federal tax credits, the federal Earned
Income Tax Credit (EITC) should be applied first, followed by the
Additional Child Tax Credit, and then any other refundable federal
credits.
EXAMPLE:
The following example
illustrates how a refundable federal Earned Income Tax Credit (EITC)
on a timely-filed 2008 federal 1040 may affect line 33 of the 2009
Iowa return.
| FIRST:
Federal Tax Liability For Tax Year 2008 |
|
| Taxpayer's
Federal Tax Liability for Tax Year 2008: |
$ 2,000 |
| Subtract Taxpayer's Federal Withholding: |
— 500 |
| |
|
| Taxpayer's
Unpaid Federal Tax Liability for Tax Year 2008: |
1,500 |
SECOND: Apply EITC
To Unpaid Federal Income Tax Balance |
| Federal EITC
Calculated by Taxpayer for Tax Year 2008: |
$ 2,500 |
| Subtract the
$1,500 Federal in Federal Income Tax the Taxpayer Still Owes
for Tax Year 2008: |
— 1,500 |
| |
|
| Taxpayer Will Receive
a Federal Refund of EITC: |
$ 1,000 |
THIRD:
Line 33 On Iowa Return For 2009
|
| 33. Additional
federal tax paid in 2009 for Tax Year 2008 |
$ 1,500 |
The
$1,500 federal tax liability paid by EITC for Tax Year 2008
is deductible on the 2009 Iowa return.
|
B. FICA payments
in excess of $6,621.60 for Social Security tax for each person and
the Motor Fuel Tax Credit from the 2009 federal return can
be deducted as a federal tax payment on line 33. Any excess FICA
tax and federal fuel tax refunded to you must be added back as a
federal tax refund in the year received. If you are self-employed,
any self-employment tax you pay cannot cause an excess FICA payment.
