50.
BALANCE.
Subtract the amount on line 49 from the
amount on line 46. If less than zero, enter
zero.
TAX REDUCING INCOME TO LESS THAN $9,000
FOR TAXPAYERS USING FILING STATUS 1, SINGLE:
Taxpayers using filing
status 1 are not eligible to
use the alternate tax computation. However, a single taxpayer who is
not claimed as a dependent on another person’s Iowa return cannot
have a tax figure on line 50 of the IA 1040 that would reduce the combination
of net income from line
26 plus any pension exclusion from line 21 of
the IA1040 and any Social Security Phase-out taken on line 12 of the
Social Security Worksheet to less than $9,000 ($24,000 if you are 65
or older as of 12/31/09).
If subtracting line 50 from
the total of lines 21, 26, and Social Security Phase-out results in
a difference of less than $9,000 ($24,000 if you are 65 or older as
of 12/31/09), the entry on line 50 must be reduced as calculated on
the worksheet below.
TAX REDUCTION WORKSHEET
1.
Add:
(a) net income
from line 26, IA 1040
(b) pension
exclusion from line 21, IA 1040
(c) Social Security Phase-out from line 12 of the
Social Security Worksheet (line 13, IA 1040) |
1. |
|
2. Write
$9,000 on this line if you are 64 or younger.
Write $24,000 if you are 65 or older as of 12/31/09. |
2. |
|
| 3. Subtract
line 2 from line 1. |
3. |
|
| 4. Enter
the amount from line 50, IA 1040. |
4. |
|
| 5. Compare
lines 3 and 4. Enter the smaller number here. If this number
is different than the one on line 50, IA 1040, substitute this number.
Write “tax reduction” to the left of line 50. |
5. |
|
EXAMPLE
John has an Iowa net income of $9,050.
None of this income includes pension or Social Security.
Tax from line 50 is $120.
1.
Add:
(a) net income
from line 26, IA 1040
(b) pension
exclusion from line 21, IA 1040
(c) Social
Security Phase-out from line 12 of the
Social Security Worksheet (line 13, IA 1040) |
1. |
9,050 |
2. Write
$9,000 on this line if you are 64 or younger.
Write $24,000 if you are 65 or older as of 12/31/09. |
2. |
- 9,000 |
| 3. Subtract
line 2 from line 1. |
3. |
50 |
| 4. Enter
the amount from line 50, IA 1040. |
4. |
120 |
| 5. Compare
lines 3 and 4. Enter the smaller number here. If this number is
different than the one on line 50, IA 1040, substitute this number.
Write “tax reduction” to the left of line 50. |
5. |
50 |
The Tax Reduction Worksheet is available as a pdf.
Go
to Line 49
Go
to Line 51 |
