IA 126 and IA 130 Examples
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IA 126 and IA 130 EXAMPLES

Example 1:
A taxpayer moved into Iowa from Florida. He needs to prepare the IA 1040 and the IA 126.

  • Bill moved to Iowa from Florida on March 6, 2011.
  • Florida wages before moving to Iowa: $17,056
  • Iowa wages: $61,585
  • Total W-2 wages for the entire year: $78,641
  • Bill does not have to claim his 2010 federal tax refund on line 27 of the Iowa 1040 because he was not required to file a 2010 Iowa tax return.
  • He earned interest and dividends while in Iowa and Florida.
  • His company paid to move him to Iowa, so he cannot claim any moving expense.

Bill's IA 1040

Bill's IA 126

Example 2:
A taxpayer moved out of Iowa. While living in Iowa, he worked out of state.
He needs to prepare the IA 1040, IA 126, and IA 130, section II.

  • Phillip moved from Iowa to Missouri on May 7, 2011.
  • Missouri wages earned while living in Iowa: $44,932
  • Missouri wages earned while living in Missouri: $17,056
  • Total W-2 wages for the entire year: $61,988
  • Phillip must claim his 2010 federal tax refund on line 27 of the Iowa 1040 because he was required to file a 2010 Iowa tax return.
  • He earned interest while in Iowa and Missouri.
  • Phillip pays his own health insurance. He paid $583 in Missouri and $1,241 in Iowa.
  • Phillip may take the moving expense deduction on the IA 1040 as he did on his federal return. But because he moved out of Iowa, he cannot take it on the IA 126.
Phillip's IA 1040 Phillip's IA 126 Phillip's IA 130

Example 3:
A taxpayer began working in Minnesota but stayed in Iowa.
He needs to prepare the IA 1040 and IA 130, section I.

  • James has always lived in northern Iowa. He still does, but began working in southern Minnesota on October 1, 2011.
  • James has two children.
  • Iowa wages earned working in Iowa: $41,632.
  • Minnesota wages earned while living in Iowa: $26,489.
  • Total W-2 wages for the complete year: $68,121.
  • James must claim his 2010 federal tax refund on line 27 of the Iowa 1040 because he filed a 2010 Iowa tax return.
  • He earned interest and dividends.
James' IA 1040 James' IA 130

Example 4:
Married taxpayers moved into Iowa. They need to prepare the IA 1040 and IA 126.

  • Daniel and Samantha Mundt moved to Iowa from Arizona.
  • Iowa has an advantage for married filers, so they filed their Iowa return using filing status 3 (married filing separately on a combined return).
  • Daniel's wages earned while living in Iowa: $9,573.
  • Daniel's W-2 wages for the complete year: $25,056.
  • Samantha's wages earned while living in Iowa: $10,233.
  • Samantha's W-2 wages for the complete year: $18,034.
  • They do not have to claim their 2010 federal tax refund on line 27 of the IA 1040, because they were not required to file a 2010 IA 1040.
  • They are allowed to claim moving expenses on both the IA 1040 and the IA 126, line 22, because they moved into Iowa.
  • They are not allowed a health insurance deduction on the IA 126, line 18, because they paid the premium while living in Arizona.
Mundt's IA 1040 Mundt's IA 126

Example 5:
Taxpayer moved into Iowa, worked in Iowa, then was transferred to Nebraska while still living in Iowa.
She needs to prepare the IA 1040, IA 126, and IA 130, part 2.

  • Janet lived in California and moved to Iowa on July 16, 2011.
  • On August 31, 2011, she was transferred to the Nebraska branch of her company but remained living in Iowa.
  • Janet's wages earned while living in Iowa: $20,496. The Nebraska branch portion of this is $14,821, which is entered on line 1 of the IA 130, section II, because she was a part-year Iowa resident.
  • Janet's wages earned while living in California: $13,022.
  • Janet's W-2 wages for the complete year: $33,518.
  • She does not have to claim her 2010 federal tax refund on line 27 of the IA 1040, because she was not required to file a 2010 IA 1040.
  • Janet received a pension distribution from California before moving to Iowa. (Janet is 58.) She can take the pension exclusion on the IA 1040. She cannot take it on the IA 126 because she received it while living in California.
Janet's IA 1040 Janet's IA 126 Janet's IA 130