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Screen IASTCr - Iowa Credit for Taxes Paid to Other Jurisdictions (1040)

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Overview

Use this screen to complete Schedule IA 130, State of Iowa Out-of-State Credit Computation for full and part-year residents only.

State Income and Tax Information

Use this section to complete Schedule IA 130, State of Iowa Out-of-State Credit Computation. If processing a multiple-state return, process the nonresident state first, followed by the resident state. UltraTax/1040-IA transfers information from the nonresident return to the resident return that is necessary to complete the credit for taxes paid to other states.
If the taxpayer or spouse is a part-year resident of Iowa and you are processing a multiple-state return, UltraTax/1040-IA does
not
 transfer information from the other part-year returns. Use the
Force
 fields to generate the credit for part-year residents.
UltraTax/1040-IA automatically prints copies of state returns if using UltraTax CS to file a nonresident return for which the credit for taxes paid to other states has been calculated.
State postal code and name
If using UltraTax CS to file a nonresident return, UltraTax/1040-IA automatically completes the
State postal code and name
 fields for the resident return. If not using UltraTax CS to file a nonresident return, make an entry in the
State postal code
 field, and UltraTax/1040-IA completes the
name
 field.
Tax paid to other state
If using UltraTax CS to file a nonresident return, UltraTax/1040-IA automatically completes the
Tax paid to other state
 fields for the resident state return. If not using UltraTax CS to file a return for which you would like to claim this credit, enter the tax paid from that state’s tax return in the
Force
 fields. If only a portion of the tax paid to another state qualifies for this calculation, enter only that amount in the
Force
 fields. Use the
Force
 fields to enter the amount in the
Tax paid to other state
 field if it is different from the calculated amount.
Use optional four decimal calculation (Force)
The Iowa Rules and Regulations allow for the calculation of the out-of-state credit using 4 decimals. The DOR processes e-filed returns using only 1 decimal. Returns using the 4 decimal method may result in a notice issued to the taxpayer. For most taxpayers, the 1 decimal method calculates the same tax liability as the 4 decimal method. E-file processing with 4 decimals will result in a rejection and the department requests that the user call them directly regarding the notice.

Part-year Resident Credit Information

Use this section to complete the Part-Year Resident section of Schedule IA 130, State of Iowa Out-of-State Credit Computation.
Tax paid to other state
Enter the amount of tax paid to the other state in these fields. Amounts entered transfer to Schedule IA 130, Enter tax imposed by other state, local jurisdiction, or foreign country.
Gross income during Iowa residency taxed by other state
Enter state income that applies to the period of residence in Iowa in these fields. Amounts entered transfer to Schedule IA 130, Amount of gross income received while an Iowa resident.
Gross income taxed by other state
Enter the total amount of gross income taxed by the other state. Amounts entered transfer to Schedule IA 130, Part-Year Resident section, Total amount of gross income taxed by the other state, local jurisdiction, or foreign country.

Part-year Resident Lump Sum Distribution Tax

Use this section to complete the Part-Year Resident section of Schedule IA 130, State of Iowa Out-of-State Credit Computation.
Lump-sum distribution subject to special lump-sum tax
Enter the amount of lump-sum distribution that is not included in the gross income of the other state in these fields. Amounts entered in this field transfer to Schedule IA 130, Amount of gross income you received while you were an Iowa resident that was taxed by Iowa and taxed by the other state, local jurisdiction, or foreign country.
Tax on lump-sum distribution
Enter the amount of tax that applies to the lump-sum distribution not included in the other state’s income that is included in the preceding
Lump-sum distribution subject to special lump-sum tax
 field. Amounts entered transfer to Schedule IA 130, Enter tax imposed by other state, local jurisdiction, or foreign country.

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