33. ADDITIONAL FEDERAL TAX PAID IN 2011.
A. Additional Tax to Enter
Enter the amount of additional federal income tax paid during 2011 for
tax year 2010 and any other years before 2010. The amount of additional
federal income tax paid is deductible only if Iowa income tax returns
were required to be filed for the year for which the additional federal
income tax was paid.
Include only the actual federal tax payments made
in 2011, but DO NOT include the following:
- excise tax on early withdrawal of qualified plans
- federal First-time Homebuyer Credit repayment
Refundable credits on the federal 1040 may be included on IA
1040, line 33, to the extent federal income tax was paid by applying
the federal refundable credits, such as:
- Earned Income Tax Credit
- Additional Child Tax Credit
Any refundable federal credits that reduce federal income tax liability are allowed as a federal
tax deduction — up to the amount of the federal tax paid by the refundable credits — on
the Iowa return.
In determining the order of applying the refundable federal tax credits, the federal Earned Income Tax Credit (EITC) should be applied first, followed by the Additional Child Tax Credit, and then any other refundable federal credits.
The following example illustrates how a refundable federal Earned Income Tax Credit (EITC) on a timely-filed 2010 federal 1040 may affect line 33 of the 2011 Iowa return.
|FIRST: Federal Tax Liability For Tax Year 2010
|Taxpayer's Federal Tax Liability for Tax Year 2010:
|Subtract Taxpayer's Federal Withholding:
|Taxpayer's Unpaid Federal Tax Liability for Tax Year 2010:
SECOND: Apply EITC To Unpaid Federal Income Tax Balance
|Federal EITC Calculated by Taxpayer for Tax Year 2010:
|Subtract the $1,500 Federal in Federal Income Tax the Taxpayer Still Owes for Tax Year 2010:
|Taxpayer Will Receive a Federal Refund of EITC:
THIRD: Line 33 On Iowa Return For 2011
|33. Additional federal tax paid in 2011 for Tax Year 2010
|The $1,500 federal tax liability paid by EITC for Tax Year 2010
is deductible on the 2011 Iowa return.
Married Separate Filers:
The additional federal tax paid must be divided between spouses in the ratio of the spouses' Iowa net incomes for the prior years for which they paid additional federal income tax.
(Examples of how to prorate)
B. FICA Payments
FICA payments in excess of $4,485.60 for Social Security tax for each
person and the Motor Fuel Tax Credit from the 2011 federal return can
be deducted as a federal tax payment on line 33. Any excess FICA tax
and federal fuel tax refunded to you must be added back as a federal
tax refund in the year received.
If you are self-employed, any self-employment
tax you pay cannot cause an excess FICA payment.