Hi @AmyC ,
Thank you for your response. To further clarify my understanding, I’ve outlined more details below:
- We are married nonresidents in Iowa for the 2024 tax year and sold our home in 2024. Our only Iowa-source income was the capital gain from the sale.
- The capital gain was 100% eligible for exclusion and is not required to be reported to the IRS.
- Based on these facts, our Iowa-source net income (IA 126, line 25) was zero.
Given these information, are we required to file an Iowa return for 2024 (IA 1040 / IA126)? We are reviewing our TurboTax results and trying to finalize our return, but it indicates that we need to file both IA 1040 and IA 126. We’re a bit confused and would appreciate your guidance. Thanks!
