Yes. You are not required to file an IA126.
According to Who Must File an Iowa return:
You must file an Iowa return if...
... you were a resident or part-year resident of Iowa in 2024 and meet any of the following requirements. Nonresidents, see items f and g.
The following items must be added for the taxpayer (and spouse, if applicable) to determine if there is a filing requirement:
- Iowa taxable income from IA 1040, line 4
- Standard deduction or itemized deductions from IA 1040, line 1d not to exceed the amount included in IA 1040, line 2.
- Personal exemption allowed for federal purposes. ($0 for 2024)
- Qualified business income deduction from IA 1040, line 1e
- Any amount of lump-sum tax distributions of taxable income
- Carryover of net operating loss claimed on the IA 1040 Schedule 1, line 17
Note to married couples filing jointly: Incomes of both spouses must be included when determining who must file.
a. You are using filing status single or married filing separately and the total of the lines listed above is more than $9,000. ($24,000 if 65 or older on 12/31/24)
b. You are using filing status married filing jointly, head of household, or qualifying surviving spouse, and the total of the lines listed above is more than $13,500. ($32,000 if you or your spouse was 65 or older on 12/31/24)
c. You were claimed as a dependent on another person’s Iowa return and had Iowa taxable income (IA 1040, line 4) of $5,000 or more. Note: You do not need to add the items listed above to IA 1040, line 4 in determination of this filing requirement.
d. You were in the military service with Iowa shown as your legal residence even though stationed outside of Iowa unless you are below the income thresholds above. For information about military spouses, see Tax Responsibilities of Military Personnel.
e. You were subject to Iowa lump-sum tax.
f. You were a nonresident or part-year resident and your Iowa-source net income IA 126, line 25 was $1,000 or more, unless below the income thresholds above. In the case of married nonresidents, the spouses' combined income is used to determine if their income is high enough to require them to file an Iowa return. To understand “Iowa-source income,” see the instructions for IA 126, lines 1 through 25. Common examples of Iowa-source income include:
- Wages earned in Iowa
- Income from Iowa property
- Rental income
- Capital gain on the sale of property
- Farming income from Iowa farmland activities and land rent?
- Self-employment income earned while working in Iowa
- Iowa unemployment benefits
- Iowa gambling winnings
- Income from an IA K-1 issued by pass-through entities, such as partnerships and S-corporations
g. You were a nonresident or part-year resident and subject to Iowa lump-sum tax (even if Iowa-source net income is less than $1,000).
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