While working through my 2019 Iowa State Return, I am asked about prior year federal tax. The question is as follows:
Subsequent questions ask about nondeductible taxes:
I read prior posts but couldn't find a conclusive answer. TIA!
2018 federal income tax Line 13 is correct for tax after non-refundable credits.
Line 16 is correct for tax withheld.
Prior Year estimated Tax/ amount applied from 2017 return would be Line 66 of Schedule 5.
Hi Mary, thanks for the quick response!
Looking through my old return, I don't have a 2018 1040 schedule 5. Is that only applicable if I opted to pay ahead on 2018 taxes during the 2017 tax season?
Yes, if you did not make estimated payments or apply your 2017 refund, it is zero.
It may also be on the Line 17 on the second line (not the a,b,c) - if there is no amount there, it is zero. BUT if you had other taxes on Schedule 5, they would be included here as well.
Final question:
Situation- Iowa return, married filing separate, moved out of state mid-year and have income in two states.
Hung up on the following prompt:
____________________________________________________________________
Iowa Minimum Tax
Based on your entries so far, you have total Iowa minimum tax of zero.
Since you're filed married filing separately on this combined return enter [spouse's name] portion of the Iowa minimum tax items listed on the following screen, if necessary.
Taxes (less any Iowa income tax): [spouse's name] ______________ Total $5131
_______________________________________________________________________
I'm unsure where this total value of $5131 populated from or what to enter in this field. Typically, if splitting any value between us I would just use the ratio of our incomes (spouse's income / (my income + spouse's income) to determine my spouse's portion of the value. On the following screens, none of the Iowa minimum tax questions are applicable to us.
Yes, in this case I would recommend using the proration- it is better to be safe than sorry and this method is accepted.