41-126: IA 126 Iowa Nonresident / Part-Year Resident Credit 41-126 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 126 is Iowa’s Nonresident and Part-Year Resident Credit Schedule. It reports Iowa-source and all-source income and adjustments, then calculates the nonresident or part-year resident credit to enter on IA 1040, line 13.
Who files this form
The 2025 IA 126 is a credit schedule for Iowa nonresidents and part-year residents. It calculates the nonresident or part-year resident credit entered on IA 1040, line 13.
The form asks you to select your residency status and your spouse’s residency status. The available choices are nonresident, part-year resident, and full-year Iowa resident. The supplied text does not give detailed filing requirements.
What you'll need
Have these forms and details available to complete the schedule:
- 2025 IA 1040: Federal total income from line 1a, Iowa tax on total income from line 5, and total credits from line 11.
- IA 1040, Schedule 1: Iowa modifications from line 13 and the federal net operating loss (NOL) amount from line 10.
- Personal details: Your name, Social Security number, residency status, and dates you moved into or out of Iowa, plus the corresponding spouse information requested by the form.
- Income and adjustment amounts: The all-source and Iowa amounts requested for wages, interest, dividends, other listed income, and adjustments.
Common mistakes
- Leaving out cents: The form says to enter dollars and cents.
- Using the wrong precision on line 29: Round the Iowa income percentage to the nearest ten-thousandth of a percent, such as 12.3456%.
- Entering a percentage outside the allowed range: Line 29 cannot be more than 100.0% or less than 0.0%.
- Missing the instruction references: The wages line directs you to instructions about the IA/IL Reciprocal Agreement, and the health insurance deduction line also says to see instructions. Those instructions were not supplied here.
Questions people ask
Does the schedule ask for dates I moved into or out of Iowa?
Yes. It includes fields for dates you and your spouse moved into or out of Iowa.
How do I calculate the Iowa income percentage?
Divide Iowa source net income on line 27 by all-source net income on line 28. Enter the result on line 29, rounded to the nearest ten-thousandth of a percent. The percentage must be between 0.0% and 100.0%.
How do I calculate the credit percentage?
Subtract the percentage on line 29 from 100.0000%. Enter the result on line 30.
Where does the final credit go?
Multiply the tax after credits on line 33 by the percentage on line 30. Enter that credit on IA 126, line 34, and on IA 1040, line 13.