63-011: IA 130FID 63-011 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 130FID is Iowa’s Fiduciary Out-of-State Tax Credit Schedule for estates and trusts. It reports income taxed by both Iowa and another jurisdiction and calculates the credit against Iowa tax for income taxes paid to that jurisdiction.
Who files this form
IA 130FID is used by estates or trusts with an Iowa situs to claim a credit for income taxes imposed by another state, a local jurisdiction outside Iowa, or a foreign country on income also taxed by Iowa.
An estate or trust with an Iowa situs for only part of the year may claim the credit only for income earned while it had an Iowa situs that was also taxed by another jurisdiction.
Complete a separate IA 130FID for each jurisdiction. Separate schedules are not required for foreign taxes paid by mutual funds or other regulated investment companies.
What you'll need
Have the following information available, as applicable:
- The estate or trust's name, federal employer identification number (FEIN), and the name of the other taxing jurisdiction.
- IA 1041 and its Schedule A. For reporting only the electing small business trust (ESBT) portion of income, use the applicable amounts from IA 1041, Schedule E.
- Federal Schedules C and E for business income and income such as rents, royalties, and partnership income.
- IA 4562A for any depreciation or section 179 adjustment included on line 8.
- The other jurisdiction's tax return showing the income tax actually due and paid and applicable credits.
- A schedule from a pass-through entity identifying your share of qualifying income tax paid by that entity.
Common mistakes
- Missing the ESBT checkbox. Check the box at the top if you are calculating the credit for only the ESBT portion of income.
- Using the full-year calculation for a part-year estate or trust. Part-year Iowa situs estates and trusts must skip the full-year calculation and use the part-year calculation.
- Exceeding the percentage limit. Round lines 13 and 21 to the nearest ten-thousandth of a percent, such as 12.3456%. Neither percentage may exceed 100.0%.
- Using withholding or estimated payments on line 17. Use the reported share of income tax actually due and paid by the pass-through entity, after the specified credit adjustments.
- Including deemed-paid foreign taxes on line 16. Do not include taxes deemed paid for purposes of the federal foreign tax credit on federal Form 1116.
- Claiming too much credit. The credit cannot exceed the Iowa tax imposed on the same income taxed by the other jurisdiction.
Questions people ask
Can the credit cover taxes paid to a foreign country?
Yes. The schedule covers qualifying income taxes imposed by another state, a local jurisdiction outside Iowa, or a foreign country.
Can taxes paid by a pass-through entity qualify?
Yes. Line 17 covers qualifying income tax paid by a pass-through entity or mutual fund on income included on line 9. For a pass-through entity, use the reported pro-rata share, with the adjustments described in the instructions.
How does a full-year Iowa situs estate or trust determine the final credit?
Enter the smaller of lines 15 and 18 on line 19. Transfer that amount to IA 1041, line 35, or to IA 1041, Schedule E, line 5b if reporting only ESBT income.
How does a part-year Iowa situs estate or trust determine the final credit?
Complete lines 20 through 22, then enter the smaller of lines 15 and 22 on line 23. Transfer that amount to IA 1041, line 35, or to IA 1041, Schedule E, line 7 if reporting only ESBT income.