Iowa Nonresident / Part-Year Resident Credit 41-126

Nonresident / Part-Year Resident Credit 41-126
IA 126 NonResident Part year Resident Credit Schedule (41126)
2022 IA 126

Iowa Nonresident and Part-Year Resident Credit Schedule
tax.iowa.gov
Name(s): _________________________________ Social Security Number: _______________________
Mark the appropriate box for you and your spouse
A nonresident of Iowa for all of 2022
A part-year resident of Iowa during 2022
Date moved into Iowa:
Date moved out of Iowa:
A full-year resident of Iowa during 2022

B. Spouse
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☐▲
____________
____________
☐

Iowa-Source Income
B. Spouse
1. Wages, salaries, tips, etc. ................................................................... 1. ________ .00
2. Taxable interest income ...................................................................... 2. ________ .00
3. Ordinary dividend income.................................................................... 3. ________ .00
4. Taxable alimony received.................................................................... 4. ________ .00
5. Business income or (loss) ................................................................... 5. ________ .00
6. Capital gain or (loss) ........................................................................... 6. ________ .00
7. Other gains or (losses) ........................................................................ 7. ________ .00
8. Taxable IRA distributions .................................................................... 8. ________ .00
9. Taxable pensions and annuities .......................................................... 9. ________ .00
10. Rents, royalties, partnerships, estates, etc.........................................10. ________ .00
11. Farm income or (loss) ........................................................................11. ________ .00
12. Unemployment compensation ............................................................12. ________ .00
13. Gambling winnings .............................................................................13. ________ .00
14. Other income, bonus depreciation, and section 179 adjustment ........14. ________ .00
15. Iowa gross income. Add lines 1-14 ....................................................15. ________ .00
16. Payments to an IRA, Keogh, or SEP..................................................16. ________ .00
17. Deductible part of self-employment tax ..............................................17. ________ .00
18. Health insurance premium .................................................................18. ________ .00
19. Penalty on early withdrawal of savings ..............................................19. ________ .00
20. Alimony paid ......................................................................................20. ________ .00
21. Pension/retirement income exclusion.................................................21. ________ .00
22. Moving expense deduction into Iowa only .........................................22. ________ .00
23. Iowa capital gain deduction ................................................................23. ________ .00
24. Other adjustments ..............................................................................24. ________ .00
25. Total adjustments. Add lines 16-24 ....................................................25. ________ .00
26. Iowa net income. Subtract line 25 from line 15 ..................................26. ________ .00
27. All-source net income from IA 1040, line 26 .......................................27. ________ .00
28. Iowa income percentage: Divide line 26 by line 27 and enter
percentage rounded to nearest ten-thousandth of a percent (e.g. 12.3456%).
This can be no more than 100.0% and no less than 0.0% ................ 28. _________ %
29. Nonresident/part-year resident credit percentage:
Subtract the percentage on line 28 from 100.0% ...............................29. _________ %
30. Iowa tax on total income from IA 1040, line 39 ..................................30. ________ .00
31. Total credits from IA 1040, line 46......................................................31. ________ .00
32. Tax after credits. Subtract line 31 from line 30 ...................................32. ________ .00
33. Nonresident/part-year resident credit. Multiply line 32 by the
percentage on line 29. Enter this amount on IA 1040, line 48 ............33. ________ .00

A. You or Joint
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A. You or Joint
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_________%
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41-126a (06/14/2022)

2022 IA 126 Instructions, page 1
Who must file?
Complete this form if you or your spouse are a
nonresident of Iowa with income from Iowa
sources, or a part-year Iowa resident.
Iowa and Illinois reciprocal agreement
Any wages or salaries earned by an Iowa resident
working in Illinois are taxable only to Iowa and not
to Illinois. Any wages or salaries earned by an
Illinois resident working in Iowa are taxable only to
Illinois and not to Iowa. Iowa will tax any Iowasource income received by an Illinois resident that
is not from wages or salaries. Illinois may tax any
Illinois-source income received by an Iowa
resident that is not from wages or salaries.
Examples: self-employment/business income,
gambling
winnings
and
unemployment
compensation from Iowa sources.
Instructions
This form and a copy of your federal return must
be included with your IA 1040. Report only Iowasource income on the IA 126.
When using filing status 3 (married filing separately
on the combined return) on your IA 1040, use both
columns A and B of IA 126 and divide your Iowa
income between spouses using the instructions
given for the corresponding line on the IA 1040 for
married separate filers. All other filing statuses use
column A only.
Complete the IA 1040, lines 1-47 before
completing the IA 126. The IA 1040 must be
completed using income from all sources.
Nonresidents and part-year residents of Iowa will
use the IA 126 to report their Iowa-source
income. The credit from this form is used to reduce
total tax on the IA 1040.
For part-year Iowa residents, Iowa net income
includes all income received while living in Iowa
plus any Iowa-source income received while a
nonresident.
For nonresidents, Iowa net income will include all
income from Iowa sources. Complete the IA 126,
lines 1-26, using only income from Iowa sources.
For married taxpayers, if one spouse is a full year
Iowa resident, the full year Iowa resident must
include all of that spouse’s income from the IA
1040, lines 1-26.
Line 1: Wages, salaries, tips, etc.
Part-year residents: Include all W-2 income
earned or received while an Iowa resident, even if
it was earned in another state, and any income for
services performed in Iowa while a nonresident of

the state. If it was earned in another state, you may
also need to fill out the IA 130 if you pay tax to the
other state. You will need to check with that state
for their filing requirements.
Nonresidents: Report only Iowa-source income. If
the portion of employee compensation earned in
Iowa by a nonresident is not reported separately,
allocate the compensation based upon the number
of days worked in Iowa to total work days.
Line 2: Taxable interest income
Part-year residents: Report all interest shown on
the IA 1040 which accrued while an Iowa resident
and any interest received while a nonresident
which was derived from a trade, business, or
profession carried on within Iowa.
Nonresidents: Report only the interest derived
from a trade, business, or profession carried on
within Iowa.
Line 3: Ordinary dividend income
Part-year residents: Report all dividends received
while an Iowa resident and any dividends received
while a nonresident which were derived from a
trade, business, or profession carried on within
Iowa.
Nonresidents: Report the dividends derived from
a trade, business, or profession carried on within
Iowa.
Line 4: Taxable alimony received
Part-year residents: Report all taxable alimony or
separate maintenance payments received while an
Iowa resident.
Nonresidents: Do not enter anything on this line.
Line 5: Business income or (loss)
Part-year residents: From the total business
income or loss shown on the IA 1040, line 5, report
the amount earned while an Iowa resident, and
report any portion of the total business income or
loss earned while a nonresident using the
instructions for nonresidents given below.
Nonresidents: Report the portion of business
income or loss attributable to a trade, business, or
profession carried on within Iowa. Include a
supporting schedule showing Iowa gross receipts
divided by total gross receipts for each business;
multiply this ratio times the total net income from
the corresponding business. A sale of goods is
considered an Iowa sale if goods are delivered or
shipped to a point within the state regardless of

41-126b (07/23/2021)

2022 IA 126 Instructions, page 2
Freight on Board (F.O.B.) point. A sale of a service
is considered an Iowa sale if the recipient of the
service receives benefit of the service in Iowa.
Line 6: Capital gain or (loss)
Part-year residents: Include 100% of the capital
gain or loss reported on the IA 1040 from assets
sold while an Iowa resident. In addition, capital
gain or loss from assets sold while a nonresident
of Iowa should be reported on the basis of the
instructions for nonresidents that follow.
Nonresidents: Include in Iowa income 100% of
capital gain or loss reported on the IA 1040 from
the following:
a. Sales of real or tangible personal property if the
property was located in Iowa at the time of the sale;
or
b. Sales of intangible personal property if the
taxpayer’s commercial domicile is in Iowa.
Note: You may have an Iowa-source gain even if
you have a net loss on the IA 1040.
Line 7: Other gains or (losses)
Part-year residents: Report 100% of gains or
losses reported on the IA 1040 from assets sold or
exchanged while an Iowa resident and any gains
or losses while a nonresident if the property was
located in Iowa at the time of sale or exchange.
Nonresidents: Report any gains or losses
reported on the IA 1040 if the property was located
in Iowa at the time of sale or exchange.
Note: You may have an Iowa-source gain even if
you have a net loss on the IA 1040.
Line 8: Taxable IRA distributions
Part-year residents: Report any taxable IRA
distributions received while an Iowa resident.
Nonresidents: Do not enter anything on this line.
Line 9: Taxable pensions and annuities
Pension income is sourced to the state for which
you are a resident when you receive it.
Part-year residents: Report any pension and
annuity income reported on the IA 1040, line 9,
which were received while an Iowa resident.
Nonresidents: Retirement income received by a
nonresident is not taxable to Iowa even when it is
from an Iowa source. Do not enter anything on this
line.

Line 10: Rents, royalties, partnerships,
estates, etc.
Part-year residents: From the total income shown
on the IA 1040, line 10, report the amount which
was earned or received while an Iowa resident,
and report any portion of the total income earned
or received while a nonresident using the
instructions for nonresidents below.
Nonresidents: Report all rents and royalties from
Iowa sources. Report the portion of partnership or
S corporation income or loss attributable to
business conducted in Iowa, include a supporting
schedule for the business calculated in the same
manner as the instructions for nonresidents given
for line 5 above.
Line 11: Farm income or (loss)
Part-year residents: Report all net farm income
earned or received while an Iowa resident. Also
report all net income from Iowa farm activities while
a nonresident using the instructions for
nonresidents given below.
Nonresidents: Report the total net income from
Iowa farm activities. If farm activities were
conducted both within and without Iowa, provide a
separate schedule showing allocation of the
income and expenses to Iowa.
Line 12: Unemployment compensation
Part-year residents: Report all unemployment
benefits received while an Iowa resident and those
benefits received the rest of the year that relate to
past employment in Iowa.
Nonresidents: Report the unemployment benefits
that relate to employment in Iowa. If the
unemployment benefits relate to employment in
Iowa and employment in another state, report the
benefits to Iowa in the ratio of Iowa salaries and
wages to total salaries and wages.
Line 13: Gambling winnings
Part-year residents: Report any gambling
winnings on the IA 1040, line 13, which were
received while an Iowa resident or income from
Iowa sources while a nonresident.
Nonresidents: Report all gambling winnings from
Iowa sources.

41-126c (06/18/2021)

2022 IA 126 Instructions, page 3
Line 14: Other income
Part-year residents: Report any income on IA
1040, line 14, which were received while an Iowa
resident, or income from Iowa sources while a
nonresident using the instructions for nonresidents
given below. This includes any federal
nonconformity
adjustments
including
the
depreciation/section 179 adjustment from the IA
4562A.
Nonresidents: Report all other income from Iowa
sources. This includes the Bonus Depreciation and
Section 179 Adjustment attributable to Iowa from
the IA 4562A. Where this other income or
adjustment relates to income allocated to Iowa on
another line of this form, include such other income
or adjustments in the same ratio as the income to
which it relates was allocated to Iowa.
Line 16: Payments to an IRA, Keogh, or SEP
Part-year residents: Deduct payments made to
an IRA, Keogh, or SEP plan while an Iowa
resident.
Nonresidents: Deduct payments made to an IRA,
Keogh, or SEP plan in the ratio of Iowa earned
income to total earned income.
Line 17: Deductible part of self-employment
tax
Part-year residents: Deduct the portion of the
self-employment tax that is attributable to the
self-employment income earned while an Iowa
resident.
Nonresidents: Deduct the portion of the amount
allowed on your IA 1040 in the ratio of your Iowa
self-employment income to your total selfemployment income.
Line 18: Health insurance premium
Part-year residents:
a. Self-employed. Enter 100% of the health
insurance premiums paid by a self-employed
individual while an Iowa resident.
b. Deducted through wages. Enter 100% of the
health insurance premiums that were not withheld
from your wages on a pretax basis while an Iowa
resident.
c. Paid directly by taxpayer. Enter 100% of the
health insurance premiums that you paid while an
Iowa resident.

Nonresidents:
a. Self-employed. Enter 100% of the health
insurance premiums paid by a self-employed
individual in the ratio of Iowa self-employment
income to total self-employment income.
b. Deducted through wages. Enter 100% of the
health insurance premiums that were not withheld
from your wages on a pretax basis in the ratio of
Iowa wages to total wages.
c. Paid direct by taxpayer. Multiply the health
insurance premiums that you paid by the ratio of
your Iowa-source net income on the IA 126, line
26, to total net income on the IA 1040, line 26. For
this net income calculation, do not include line 18,
the health insurance premium in the abovereferenced net income amounts.
Line 19: Penalty on early withdrawal of savings
Part-year residents: Deduct the amount of any
penalty you were charged because you withdrew
funds from your time savings deposit before its
maturity while an Iowa resident or what was
derived from an Iowa trade, business, or
profession.
Nonresidents: Deduct the amount of any penalty
you were charged because you withdrew funds
from your time savings deposit before its maturity
that was derived from an Iowa trade, business, or
profession.
Line 20: Alimony paid
Part-year residents: Deduct alimony payments,
that were deductible on your federal return, while
an Iowa resident.
Nonresidents: Deduct alimony payments, that
were deductible on your federal return, in the ratio
of Iowa gross income to total gross income.
Line 21: Pension/retirement income exclusion
Part-year residents: If you qualify for this
exclusion on the IA 1040, you may exclude the
amount of taxable retirement income received
while an Iowa resident, up to a maximum of
$6,000 (if filing status 1, 5, or 6) or $12,000 (if filing
status 2, 3, or 4).
Nonresidents: Do not enter anything on this line.

41-126d (06/09/2022)

2022 IA 126 Instructions, page 4
Line 22: Moving expense deduction
Part-year residents: If you moved into Iowa, enter
any unreimbursed moving expenses from the IA
1040, line 22 that relate to the move to Iowa. Partyear residents moving out of Iowa cannot take any
deduction on this line.
Nonresidents: Do not enter anything on this line.
Line 23: Iowa capital gain deduction
Enter 100% of qualifying capital gains deduction
attributable to Iowa sources.
Line 24: Other adjustments
Deduct miscellaneous adjustments to income in
the same ratio as the income to which the
adjustment relates was allocated to Iowa.

Line 26: Iowa net income
Subtract line 25 from line 15 and enter the
difference on this line. If line 26 is $1,000 or
more, if you are subject to Iowa lump-sum, or if
you are subject to alternative minimum tax,
complete lines 27 through 33. If line 26 is less
than $1,000 and you are not subject to Iowa
lump-sum or alternative minimum tax, you are
not required to file an Iowa income tax return.
Married taxpayers must combine their Iowa
income amounts for purposes of the $1,000 filing
threshold. If you had Iowa tax withheld and you
are requesting a refund, or you choose to file an
Iowa return even if you aren’t required to do so,
enter 100% on line 29, complete the remainder of
the schedule, and enter the credit amount on the
IA 1040, line 48.

41-126e (09/21/2021)