Iowa S Corporation Apportionment Credit 41-134

S Corporation Apportionment Credit 41-134
IA 134 S Corporation Apportionment Tax Credit, 41-134
2022 IA 134

Iowa S Corporation Apportionment Tax Credit
tax.iowa.gov
Shareholder name(s): ___________________________________________________________________
Social Security Number (SSN) or Federal Employer Identification Number (FEIN):____________________
S corporation name: __________________________________ S corporation FEIN: _________________
PART I – Income Items
1. Ordinary business income (loss) from line 1, federal Schedule K-1 ....................... 1. _______________
2. Net rental real estate income (loss) from line 2, federal Schedule K-1 .................. 2. _______________
3. Other net rental income (loss) from line 3, federal Schedule K-1 ........................... 3. _______________
4. Interest income from line 4, federal Schedule K-1 .................................................. 4. _______________
5. Ordinary dividends from line 5a, federal Schedule K-1 .......................................... 5. _______________
6. Royalties from line 6, federal Schedule K-1 ............................................................ 6. _______________
7. Net short-term capital gain (loss) from line 7, federal Schedule K-1 ...................... 7. _______________
8. Net long-term capital gain (loss) from line 8a, federal Schedule K-1 ..................... 8. _______________
9. Net section 1231 gain (loss) from line 9, federal Schedule K-1.............................. 9. _______________
10. Other income (loss) from line 10, federal Schedule K-1 ....................................... 10. ______________
11. S corporation income. Add lines 1 through 10 ...................................................... 11. ______________
PART II – Deductions
12. Section 179 deductions from line 11, federal Schedule K-1 ............................ 12. ______________
13. Other deductions other than itemized deductions from line 12, federal
Schedule K-1. See instructions........................................................................ 13. ______________
14. Total deductions. Add lines 12 and 13 ............................................................. 14. ______________
15. Taxpayer’s share of S corporation income. Subtract line 14 from line 11 ........ 15. ______________
16. State adjustments to federal S corporation income. Include statement ........... 16. ______________
17. Taxpayer’s share of Iowa S corporation income. Add lines 15 and 16 ............ 17. ______________
PART III – Apportionment
18. Total non-business income .............................................................................. 18. ______________
19. Subtract line 18 from line 17 ............................................................................ 19. ______________
20. Business activity ratio (BAR) reported on IA 1120S Schedule K-1.
Do not leave blank ........................................................................................... 20._____________%
21. Income apportioned to Iowa. Multiply line 19 by line 20 .................................. 21. ______________
22. Iowa non-business income .............................................................................. 22. ______________
23. Iowa source S corporation income. Add lines 21 and 22 ................................. 23. ______________

41-134a (08/31/2022)

2022 IA 134, page 2
PART IV – Credit Calculation
24. Cash or property distribution from income not previously taxed by Iowa ......... 24. ______________
25. Federal tax on S corporation income, line 9, Schedule A, IA 134 .................... 25. ______________
26. Subtract line 25 from line 24. If zero or less, enter zero .................................. 26. ______________
27. Enter the greater of line 23 or line 26 .............................................................. 27. ______________
28. Iowa net income from line 26, IA 1040 or line 9, IA 1041, exclude net
operating loss (NOL) carryforward or carryback .............................................. 28. ______________
29. Subtract line 17 from line 28. ........................................................................... 29. ______________
30. Add lines 27 and 29 ......................................................................................... 30. ______________
31. Divide line 30 by line 28. Enter the result as a percentage rounded to
4 decimal places (e.g. 12.3456%). If less than zero, enter 0%. If 1 or
greater, enter 100%. ........................................................................................ 31._____________%
32. Subtract line 31 from 100% ............................................................................. 32._____________%
33. Iowa tax from line 42, IA 1040, or line 31, IA 1041 .......................................... 33. ______________
34. S Corporation Apportionment Tax Credit for Full-Year Resident. Multiply line
32 by line 33, if zero or less, enter zero. If you were a full-year Iowa resident,
enter this amount in column D on Part I of the 2022 IA 148 Tax Credits
Schedule. If you were a part-year Iowa resident, proceed to Part V. ............... 34. ______________
PART V – Credit Calculation for Part-Year Residents
35. Enter the total amount of S corporation income (loss) that was reported as
Iowa-source income on lines 1-25 of your 2022 IA 126, or in column B of
lines 1-8 of your 2022 IA 1041, Schedule C. This amount CANNOT exceed
the amount entered on line 17 of this IA 134... ................................................ 35. ______________
36. From the total entered on line 35, enter the portion of that S corporation
income (loss) that was reported as earned while an Iowa resident
on your 2022 IA 126 or your IA 1041, Schedule C. ......................................... 36. ______________
37. Divide line 36 by line 17. Enter the result as a percentage rounded to
4 decimal places. If less than zero, enter 0%. If 1 or greater, enter 100% ....... 37. _____________%
38. Multiply line 34 by line 37, if zero or less, enter zero. If you were a
part-year resident, enter this amount in column D on Part I of the
2022 IA 148 Tax Credits Schedule. ................................................................. 38. ______________
IA 148 Tax Credits Schedule must be completed

41-134b (08/31/2022)

2022 IA 134, page 3
Schedule A: Federal Income Tax Attributable to S Corporation Income
Shareholders who file a federal joint return and status 3 for Iowa can refer to Iowa Administrative Code
rule 701—403.10 for clarification.
1. Taxpayer’s share of federal S corporation income from line 15, IA 134 ....................... 1. _________
2. Federal adjusted gross income from line 11 of the 2022 federal 1040; or total income
from line 9 of the 2022 federal 1041 ............................................................................. 2. _________
3. Divide line 1 by line 2. Enter the result as a percentage rounded to 4 decimal
places (i.e. 12.3456%). Do not exceed 100%............................................................... 3. ________ %
4. Federal income tax before credits from line 16 of the 2022 federal 1040; or line 1a of
2022 federal 1041 Schedule G ..................................................................................... 4. _________
5. Federal alternative minimum tax from line 1 of the 2022 federal 1040 Schedule 2; or
line 1c of the 2022 federal 1041 Schedule G................................................................ 5. _________
6. Net federal income tax. Add lines 4 and 5 .................................................................... 6. _________
7. Multiply line 3 by line 6 ................................................................................................. 7. _________
8. Federal income tax credits related to the S corporation (exclude backup withholding
and fuel tax credit) ........................................................................................................ 8. _________
9. Federal income tax attributable to S corporation income. Subtract line 8 from line 7.
Enter on line 25 of IA 134. ............................................................................................ 9. _________

41-134c (12/08/2022)

2022 IA 134 Instructions
Iowa resident shareholders of S corporations,
estates, and trusts with a situs in Iowa may be
eligible for an S Corporation Apportionment Tax
Credit if the S corporation carries on business
within and without Iowa.
A shareholder who has elected to apportion income
by claiming the S Corporation Apportionment Tax
Credit, and then elects not to apportion income,
cannot re-elect to apportion income for three tax
years immediately following the first tax year in
which the shareholder elected not to apportion
income, unless the Director of the Iowa Department
of Revenue consents to the election.
If a taxpayer claims the S Corporation
Apportionment Tax Credit, the taxpayer may not
take an Out-of-State Tax Credit against Iowa
income tax for income taxes paid to another state,
local jurisdiction, or foreign country on the S
corporation income.
For married taxpayers filing separately (filing
status 3 or 4), each spouse must calculate a
separate credit on a separate IA 134.
If a taxpayer is a shareholder in multiple S
corporations, a separate IA 134 must be
completed for each S corporation.
Each S Corporation Apportionment Tax Credit
must be reported on a separate line of Part I on
the 2022 IA 148 Tax Credits Schedule. Include the
S corporation name in column M and the FEIN in
column N of Part IV on the IA 148.
Line 13: Other Deductions
Do not include amounts paid by the corporation
that would be allowed as itemized deductions on
a shareholder’s return, if they were paid directly
by a shareholder for the same purpose.
Line 20: Business Activity Ratio (BAR)
Report the BAR provided to shareholders on the
IA 1120S Schedule K-1. The S corporation must
complete the IA 1120S in order for shareholders
to make a claim to this tax credit.
Line 24: Cash or Property Distributions from
Income Not Previously Taxed by Iowa
Distributions from income not previously taxed
by Iowa include the amount of all cash
distributions and the fair market value of all
property distributions made during the year. Do
not include the following:
a. Distributions not subject to Iowa tax. Example:
interest from federal securities or certain
securities issued by Iowa.

b. Distributions from income previously taxed by
Iowa for a year in which the S corporation was
a C corporation and which is taxed as a
dividend or capital gain for federal income tax
purposes.
c. Distributions from income previously taxed by
Iowa for a year prior to the first tax year the
resident shareholder elected to apportion
income.
d. Distributions paid from income for which the
corporation can show that Iowa tax has been
previously paid.
Line 31: If the percentage is less than zero,
enter 0%. If the percentage is 1 or greater, enter
100%. Otherwise, round the percentage to the
nearest four decimal places, i.e. four digits to the
right of the decimal place.
Line 34: S Corporation Apportionment Tax
Credit—Full-Year Resident
If you are a full-year resident, enter this amount in
column D of Part I on the 2022 IA 148 Tax Credits
Schedule; use tax credit code 11 in column A and
leave column B blank. Any credit in excess of the
tax liability cannot be carried forward and should
be entered as expired in column G of the IA 148.
Part-year residents must also complete lines 3538 before claiming the credit.
Line 35: Your S corporation income (loss)
reported on lines 1-25 of your 2022 IA 126, or
Column A of lines 1-8 of your 2022 IA 1041,
Schedule C, will include the total amount earned
while you were an Iowa resident, and the portion
attributable to Iowa earned while you were a
nonresident. Report both amounts on this line.
Line 36: From the total amount reported on line
35, enter the total amount earned while you were
an Iowa resident. Do not include the portion
attributable to Iowa earned while you were a
nonresident.
Line 38: S Corporation Apportionment Tax
Credit—Part-Year Resident
If you are a part-year resident, enter this amount
in column D of Part I on the 2022 IA 148 Tax
Credits Schedule; use tax credit code 11 in
column A and leave column B blank. Any credit
in excess of the tax liability cannot be carried
forward and should be entered as expired in
column G of the IA 148.
Include this form and the IA 148 with your IA
1040 or IA 1041.
41-134d (08/31/2022)