41-130: IA 130 Iowa Out-of-state Credit Computation 41-130 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 130 is Iowa’s Out-of-State Tax Credit Schedule. It reports income taxed by both Iowa and another state or jurisdiction and calculates the credit for full-year and part-year residents.
Who files this form
The 2024 IA 130 calculates Iowa’s out-of-state tax credit for income taxed by both Iowa and another state or jurisdiction. It has separate credit calculations for full-year and part-year residents.
Include this schedule with your return.
What you'll need
Have these forms and amounts available to complete the schedule:
- Your 2024 IA 1040, including lines 1a and 14.
- Your IA 1040, Schedule 1, including lines 10 and 13.
- Your IA 126, line 13, if you are a part-year resident.
- Income amounts taxed by both Iowa and the other jurisdiction, broken down by the categories on lines 1–12.
- The other jurisdiction’s income tax paid by you, and any income tax paid by your pass-through entity or mutual fund, on income included on line 13.
- For part-year residents, the total gross income taxed by the other jurisdiction.
The form also asks for your name, Social Security number, and the name of the other state or jurisdiction.
How to file
Include the completed IA 130 with your return.
- Full-year residents: Enter the smaller of lines 19 or 22 on line 23, then enter that credit on IA 1040, line 15.
- Part-year residents: Skip the full-year resident calculation and complete lines 24–27. Enter the smaller of lines 19 or 26 on line 27, then enter that credit on IA 1040, line 15.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out the schedule: The form says to include it with your return.
- Using the full-year calculation as a part-year resident: Part-year residents must skip that section and use the part-year resident calculation.
- Entering percentages incorrectly: On lines 17 and 25, round to the nearest ten-thousandth of a percent, such as 12.3456%. Do not exceed 100.0%.
- Omitting cents: The form directs you to enter dollars and cents.
Questions people ask
Where do I report the credit on my Iowa return?
Enter the credit on IA 1040, line 15. Use IA 130, line 23, for full-year residents or line 27 for part-year residents.
Can the calculation include tax paid by a pass-through entity or mutual fund?
Line 21 asks for income tax imposed by the other jurisdiction and paid by your pass-through entity or mutual fund on income included on line 13. Line 22 adds that amount to the tax paid by you on line 20.
What total Iowa income amount do part-year residents use?
For line 16, the form directs part-year residents to use IA 126, line 13.
Does the form mention a special rule for Illinois wages?
Yes. Line 1 directs you to consult the instructions about the Iowa/Illinois Reciprocal Agreement. Those instructions were not supplied, so the available text does not explain the rule.