41-130: IA 130 Iowa Out-of-state Credit Computation 41-130 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 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 to enter on your IA 1040.
Who files this form
The 2025 IA 130 is used to calculate 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 return figures and details available:
- Your name, Social Security number, and the name of the other state or jurisdiction that taxed the income.
- Income amounts for the categories on lines 1–12, including wages, interest, dividends, business income, gains or losses, rents, farm income, unemployment compensation, and gambling winnings.
- Your IA 1040, lines 1a and 14, and IA 1040 Schedule 1, lines 10 and 13.
- Income tax imposed by the other jurisdiction and paid by you, your pass-through entity, or your mutual fund on income included on line 13.
- For part-year residents, IA 126, line 13, and the total gross income taxed by the other jurisdiction.
How to file
Include the completed IA 130 with your return.
- Full-year residents: On line 23, enter the smaller of lines 19 or 22. Also enter that credit on IA 1040, line 15.
- Part-year residents: Complete lines 24–27. On line 27, enter the smaller of lines 19 or 26. Also enter that credit on IA 1040, line 15.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Using the full-year calculation as a part-year resident: The form tells part-year residents to skip the full-year resident section.
- Entering a percentage above the limit: Lines 17 and 25 must not exceed 100.0%.
- Rounding percentages incorrectly: Round lines 17 and 25 to the nearest ten-thousandth of a percent, such as 12.3456%.
- Leaving off cents: The form asks for dollars and cents.
- Omitting the schedule: Include IA 130 with your return.
Questions people ask
How do I calculate the income taxed by both jurisdictions?
Add the income amounts on lines 1–12. Enter the total on line 13 as Iowa gross income taxed by another jurisdiction.
What goes on line 16 for a part-year resident?
Use IA 126, line 13. The form directs other filers to add lines 14 and 15.
Where do I report tax paid by a pass-through entity or mutual fund?
Use line 21 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.
Where does my credit go on my Iowa return?
Enter the credit from line 23 for full-year residents, or line 27 for part-year residents, on IA 1040, line 15.