41-134: IA 134 S Corporation Apportionment Tax Credit 41-134 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 Iowa IA 134 calculates the S Corporation Apportionment Tax Credit for full-year and part-year Iowa residents. It reports a shareholder’s share of S corporation income, Iowa-source income, and related tax amounts to determine the credit entered on the IA 148 Tax Credits S
Who files this form
Use the 2025 IA 134 to calculate and claim the Iowa S Corporation Apportionment Tax Credit if you are an eligible S corporation shareholder.
You may qualify if:
- You are an Iowa resident individual, or an estate or trust with a situs in Iowa.
- The S corporation does business both within and outside Iowa.
Part-year residents complete an additional calculation in Part IV.
If you own shares in more than one S corporation, complete a separate IA 134 for each corporation. Married taxpayers filing separately must each calculate their credit on a separate IA 134.
What you'll need
Have these documents and details ready:
- Your IA Schedule K-1 received from the S corporation. The form uses income and modification amounts from IA 1120S Schedule K-1, Part II.
- Your 2025 IA 1040 or IA 1041.
- Your 2025 federal Form 1040 or 1041, including the applicable tax and alternative minimum tax amounts used in Schedule A.
- Your 2025 IA 126 if you are a part-year resident. Part IV also provides references to IA 1041 Schedule C for estates and trusts.
- Your 2025 IA 148 Tax Credits Schedule, which must be completed.
- The shareholder's name and SSN or FEIN, plus the S corporation's name and FEIN.
- Amounts of cash and property distributions from income not previously taxed by Iowa, and federal income tax credits related to the S corporation.
How to file
- Complete Parts I and II using your IA 1120S Schedule K-1.
- Complete Schedule A to calculate the federal income tax attributable to S corporation income. Transfer Schedule A, line 9, to IA 134, line 9, and complete Part III.
- If you are a full-year resident, report the credit from line 18 on the 2025 IA 148, Part I, column D. If you are a part-year resident, complete Part IV and report the credit from line 22 instead.
- On IA 148, use tax credit code 11 in column A and leave column B blank. Report each S Corporation Apportionment Tax Credit on a separate line of Part I. Enter the corporation's name in Part IV, column M, and its FEIN in column N.
- Include IA 134 and IA 148 with your IA 1040 or IA 1041.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Claiming both credits on the same S corporation income. If you claim this credit, you may not claim the Iowa Out-of-State Tax Credit, IA 130, for income taxes paid by you or the S corporation to another jurisdiction on that income.
- Including an Iowa NOL carryforward deduction on line 12. The form says to exclude that deduction from the Iowa taxable income amount used here.
- Skipping the part-year calculation. Part-year residents must complete lines 19–22 before claiming the credit. Line 19 cannot exceed line 3, and line 20 must not include income earned while a nonresident.
- Carrying unused credit forward. Credit exceeding your tax liability cannot be carried forward. Enter it as expired in IA 148, column G.
- Omitting IA 148. It must be completed and included with IA 134 and your IA 1040 or IA 1041.
- Including excluded credits in Schedule A, line 8. Do not include backup withholding or the fuel tax credit.
Questions people ask
What happens if I claim the credit and then skip the following year?
If you claim the credit and do not claim it the following tax year, you cannot claim it for the three tax years immediately after the year you declined it, unless the Director of the Iowa Department of Revenue consents to the election.
Can I use one IA 134 for several S corporations?
No. Complete a separate IA 134 for each S corporation and report each credit on a separate line of IA 148, Part I.
Can part-year residents claim the credit?
The form provides a calculation for eligible part-year residents. Complete Part IV, lines 19–22, and report the line 22 credit on the 2025 IA 148, Part I, column D.
What distributions go on line 8?
Line 8 includes cash distributions and the fair market value of property distributions made during the year from income not previously taxed by Iowa, subject to the exclusions listed in the instructions. Income apportioned outside Iowa under a prior claim of this credit does not qualify for the exclusions described in items a and d.
Can I carry forward credit that exceeds my tax liability?
No. Enter the excess as expired in column G of IA 148.