Iowa allows certain income adjustments that do not fit into one of the standard subtraction categories. These adjustments are reported under Other Subtractions from Federal Total Income and may increase or decrease the amount of income subject to Iowa tax.
Program Entry
Iowa Return → Income → Subtractions From Income → Other Subtractions from Federal Total Income
The Following Information Can Be Added
Baby-Sitting Income Not Reported on Federal Schedule C
Income from providing childcare services that was not reported on Federal Schedule C.
College Savings Iowa Plan or Iowa Advisor 529 Plan
Adjustments related to qualifying Iowa 529 plan transactions.
First-Time Homebuyer Nonqualifying Withdrawals
Certain withdrawals from a First-Time Homebuyer Savings Account that may require an Iowa adjustment.
Net Premium Tax Credit
Adjustments related to the federal Premium Tax Credit.
Iowa ABLE Savings Plan
Adjustments related to qualifying Iowa ABLE account transactions.
Adjustments from IA Form 163 Resulting in a Modification to Income
Modifications calculated on Iowa Form IA 163.
Premium, Recruitment, or Retention Pay Adjustment
A subtraction of qualifying premium, recruitment, or retention pay included in income, up to the amount allowed by Iowa law.
Other Income Not Included in Federal Taxable Income That Is Taxable for Iowa Purposes
Income that is not included in federal taxable income but must be reported for Iowa tax purposes.
School Tuition Contribution Claimed as a Federal Itemized Deduction
School tuition contributions that require an Iowa adjustment when claimed as a federal itemized deduction.
Notes
- These adjustments only apply in specific situations.
- Supporting documentation should be retained for all adjustments claimed.
- Additional Iowa forms or schedules may be required depending on the adjustment selected.