41-126: IA 126 Iowa Nonresident / Part-Year Resident Credit 41-126 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 126 is Iowa’s Nonresident and Part-Year Resident Credit Schedule. It reports Iowa-source and all-source income and adjustments to calculate the nonresident or part-year resident credit entered on IA 1040.
Who files this form
The 2024 IA 126 is used to calculate the Iowa nonresident or part-year resident credit. The form does not state who is required to file it.
It asks you to select your residency status and your spouse’s residency status, with choices for nonresident, part-year resident, and full-year Iowa resident.
What you'll need
Have these Iowa return forms available for the amounts requested on IA 126:
- 2024 IA 1040: Line 1a for federal total income, line 5 for Iowa tax on total income, and line 11 for total credits.
- IA 1040 Schedule 1: Lines 13 and 10 for the calculation on IA 126, line 15.
The schedule also asks for names, Social Security numbers, residency statuses, dates moved into or out of Iowa, and income and adjustment amounts.
Common mistakes
- Enter amounts in dollars and cents, as the form directs.
- On line 27, round the Iowa income percentage to the nearest ten-thousandth of a percent, such as 12.3456%. The percentage cannot exceed 100.0% or be less than 0.0%.
- Line 1 directs you to instructions about the IA/IL Reciprocal Agreement. Line 19 also directs you to instructions for the health insurance deduction. Those instructions are not included in the supplied text.
Questions people ask
How do I calculate Iowa source net income?
Subtract line 24, Column B, from line 13. Enter the result on line 25.
How do I calculate all-source net income?
Subtract line 24, Column A, from line 16. Enter the result on line 26.
How is the nonresident or part-year resident credit percentage calculated?
Divide line 25 by line 26 to get the Iowa income percentage on line 27. Round it to the nearest ten-thousandth of a percent and keep it between 0.0% and 100.0%. Then subtract that percentage from 100.0000% to get the credit percentage on line 28.
Where does the final credit go on my Iowa return?
Subtract line 30 from line 29 to get tax after credits on line 31. Multiply line 31 by the percentage on line 28. Enter that credit on IA 126, line 32, and on IA 1040, line 13.