Why do I have to report my federal (IRS) refund on the Iowa return?
On a prior Iowa return, you deducted the federal taxes you paid, which reduced your taxable Iowa income.
You received a refund of part of the deduction from the IRS. You must add the IRS refund to your Iowa income in the year you received it.
Your IRS refund must be reported, even if you chose to apply it to the next tax year.
Where do I report my federal refund on the Iowa return?
If you file electronically, the software will ask you about your federal refund. If it fails to do so, you should contact the company's customer service center.
On the IA 1040, the federal refund is reported on line 27. If you chose to have any part of your federal refund credited to estimated tax payments, the amount should be claimed as estimated tax paid on line 32. The total federal overpayment must also be reported on line 27.
Where do I deduct the federal tax I paid?
If you file electronically, the software will ask you about the federal tax you paid when it asks about W-2 information. If it fails to do so, you should contact the company's customer service center.
On the IA 1040, the federal tax you paid is reported on lines 31, 32, and 33.