42-029: IA 101 Nonconformity Adjustments 42-029 (2024)
Iowa · Iowa DOR · Used for tax years 2024
Iowa Form IA 101 reports adjustments to Iowa net income resulting from Iowa’s 2018 and 2019 differences from federal tax law. It also tracks accumulated adjustments and amounts remaining for future years from Iowa’s 2018 nonconformity.
Who files this form
Include IA 101 with your Iowa tax return if you enter any adjustment on Part I, lines 1 through 12.
The form reports carryforward and other adjustments resulting from Iowa’s 2018 and 2019 differences from federal tax law. It may be used by taxpayers filing IA 1040, IA 1041, IA 1065, IA 1120, IA 1120S, or IA 1120F. Not every adjustment applies to every taxpayer.
Do not use this form to report carryover adjustments from tax year 2018 if you did not file an Iowa return for 2018.
What you'll need
Depending on your adjustment, have these records available:
- Your 2018 Iowa Nonconformity Adjustments Worksheet, which supplies the original amounts for many carryforward adjustments.
- Prior-year IA 101 forms, including Part II, to track adjustments already claimed and amounts remaining.
- The IA 8824 Worksheet if you are reporting a like-kind exchange adjustment on line 2. Use the amount from that worksheet’s line 25.
- A supporting schedule explaining any adjustments entered on line 12. Attach this schedule.
Keep a copy of IA 101 and supporting documentation for as long as the adjustments apply.
How to file
Include IA 101 with your Iowa tax return. The supplied text does not give a mailing address or e-file instructions.
- Enter your name, SSN or FEIN, and tax period end date.
- Complete the applicable Part I lines using dollars and cents. Amounts may be positive or negative.
- Add lines 1 through 12 and enter the total on line 13.
- Transfer line 13 to the appropriate place on your Iowa return.
- Use Part II to track applicable carryforward adjustments from Iowa’s 2018 nonconformity, and keep a copy for future years.
For tax year 2024, transfer line 13 as follows:
- IA 1040: Schedule 1, line 11, code x. Use column A for positive amounts and column B for negative amounts.
- IA 1041: Schedule A, Part I, line 4 for positive amounts; Schedule A, Part II, line 6 for negative amounts.
- IA 1065 or IA 1120S: Schedule A, line 12.
- IA 1120: Schedule A, line 15.
- IA 1120F: Schedule A, line 9.
Common mistakes
- Using lines that do not allow a 2024 adjustment. Line 3 allows no adjustment for tax years beginning on or after January 1, 2020. Line 4 allows no adjustment for tax year 2024 or later. Line 6 allows no deduction for tax year 2020 or later.
- Putting depreciation differences on IA 101. Iowa and federal differences in depreciation and section 179 expensing belong on IA 4562A and B, not this form.
- Entering negative amounts in Part II. All Part II entries must be positive amounts, even when the corresponding Part I adjustment is negative.
- Including line 3a amounts in Part II. Part II tracks 2018 nonconformity only. Do not include the 2019 CARES Act interest expense adjustment from line 3a.
- Overstating remaining adjustments. Part II, column B cannot exceed column A, and column D cannot be negative.
Questions people ask
Can a Part I adjustment be negative?
Yes. Part I amounts may be positive or negative. Use dollars and cents.
What is Part II for?
Part II tracks accumulated adjustments from Iowa’s 2018 nonconformity. It shows the original amount, prior-year adjustments, the current-year adjustment, and the amount remaining for future years.
How do I calculate the amount remaining in Part II?
Subtract columns B and C from column A to calculate column D. Column D can never be negative.
Where do I report an adjustment that is not covered by another line?
Line 12 covers carryforward adjustments related to 2018 nonconformity that are not included elsewhere, along with certain adjustments resulting from 2019 nonconformity. Attach a supporting schedule explaining the amounts entered.