![]() Total adjusted Iowa net income, add lines 7a and 7bĩ. Net income of both spouses from line 1 aboveĨ. If using filing status 3 or 4 and line 5 is less than line 4, then enter each spouse's tax from the tax tables on line 39, IA 1040.ħ. If using filing status 3 or 4 and line 4 is less than line 5, continue to line 7. If using fling statuses 2, 5, or 6 also enter on line 39, IA 1040. Compare the amounts on line 4 and line 5. (Status 3 and 4 filers: Calculate tax separately and combine the amounts.)Ħ. Using the tax tables, determine the tax on the taxable income from line 38 of the IA 1040. Income subject to alternate tax calculation. (d) Lump Sum distributions, of taxable income reported on federal form 4972 line 8: _Ģ. (c) Reportable Social Security benefits from Step 4 of the IA 1040: _ (b) Pension exclusion from line 21, IA 1040: _ ![]() If you are filing status 4 and do not provide the other spouse’s income in step 2 on the IA 1040, you will not be allowed the alternate tax calculation.A statement must be included with the return saying that the spouse with the net operating loss will not carry it back or forward. ![]() If the spouse with the net operating loss elects not to carry the net operating loss back or forward, then you can use the alternate tax computation. If you are married filing separately and one spouse has a net operating loss that will be carried back or forward, then you cannot use the alternate tax computation.Prorate the alternate tax between spouses in the ratio of the net income of each spouse to the combined net income of both spouses using lines 7-11.Use the combined net incomes of both spouses.Special instructions for filing status 3, Married Filing Separately on a Combined Return, and filing status 4, Married Filing Separate Returns: Carryforward of Net Operating Loss claimed on the IA 1040 must be added back to net income line 26. Single taxpayers may be eligible for the Iowa income tax reduction see Iowa Income Tax Reduction Worksheet. All filing statuses except filing status 1, Single, may qualify for the Iowa alternate tax calculation. ![]() You may owe less tax by completing the worksheet below to compute your tax liability. ![]()
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