Line 28
2013 Iowa 1040 Expanded Instructions
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28. SELF-EMPLOYMENT/HOUSEHOLD EMPLOYMENT TAXES

Federal self-employment tax

Federal self-employment tax is not allowed as a deduction for federal taxes in this step of the Iowa return (see line 17 for partial deductibility as an adjustment to income). If any part of the federal tax payments on lines 31, 32 or 33 includes self-employment tax, then the self-employment tax must be added back on line 28.

The 0.9% Medicare tax is not considered a federal income tax and is, therefore, not deductible on the Iowa return. Taxpayers can deduct their entire withholding amount on line 31, but the self-employment tax portion must be added back on line 28. 

Federal household employment taxes

Federal household employment taxes are not allowed as a deduction for federal taxes on the Iowa return. If any part of the federal tax payments on lines 31, 32, or 33 include federal household employment taxes, then the federal household employment taxes must be added back on line 28.

It is acceptable to report on line 28 either the current year’s self-employment/household employment tax or the prior year’s, as long as the reporting method is consistent from one year to the next.

Married Separate Filers:

Each spouse must claim his or her own federal self-employment tax. The household employment taxes are divided between spouses in the ratio of their respective net incomes.

(Examples of how to prorate)

 

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