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Gave stock to an Iowa School Tuition Organ, I get a fed donation deduction and a state of IA credit.I don't get to deduct the gift for IA. How do I subtract amount forIA?

I use TurboTax Premier for the Desktop and live in Iowa
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3 Replies
AmyC
Expert Alumni

Gave stock to an Iowa School Tuition Organ, I get a fed donation deduction and a state of IA credit.I don't get to deduct the gift for IA. How do I subtract amount forIA?

Follow these steps:

  1. As you go through Iowa, when the program ask "Do you qualify for any of these nonrefundable credits?" Select yes.
  2. Select No
  3. Select No
  4. Select the dropdown box, choose your STO 
  5. Enter the information.

 

 

 

 

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Gave stock to an Iowa School Tuition Organ, I get a fed donation deduction and a state of IA credit.I don't get to deduct the gift for IA. How do I subtract amount forIA?

These are great instructions on how to claim an Iowa STO credit. However, that isn't my question. If I give $1,000 in appreciated stock to an IA SO, I get a $750 IA credit and can take a $250 Fed charitable deduction. While the $250 is a valid Fed deduction, I can't take that $250 as an IA deduction. So I am asking how do I reduce my IA non-cash, charitable deductions by $250? The software pulls the fed deductions forward to IA return. I need a place to reduce them to the legal amount.

AmyC
Expert Alumni

Gave stock to an Iowa School Tuition Organ, I get a fed donation deduction and a state of IA credit.I don't get to deduct the gift for IA. How do I subtract amount forIA?

You need to add the $250 back into your income. You can add it as a nonconformity adjustment to federal income. Follow these steps:

 

  1. Go back to your Iowa return 
  2. Go until you reach You've finished your Iowa Return
  3. Select Income update/revisit/edit
  4. Select the Iowa Nonconformity Adjustment, continue
  5. Any of these? Select No
  6. Continue
  7. Enter description and amount
  8. Continue

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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