If you received a federal refund, you must report the amount on this line. It must be reported even if you used the standard deduction on the prior year's Iowa return. The federal refund must be included on this line because you benefited from being able to deduct federal taxes on the prior year's Iowa return, which reduced your Iowa taxable income for that year. The amount reported on this line should not exceed the total amount of any federal tax deduction taken on the prior year(s) Iowa return.
Note: Economic Impact Payments received separately from your federal income tax refund are not reported as income on the IA 1040 nor do they reduce the amount of your reportable federal refund on line 27 of the IA 1040.
For Line 27, please include the following:
- The refund you received from your 2020 federal tax return, this includes any additional federal refund received as a result of an adjustment made on your 2020 return to exclude $10,200 of unemployment compensation.
- To find the amount you received, check your records or call the IRS at 800-829-1040. This information is not available from the Iowa Department of Revenue.
- Any federal refunds received in 2021 for other years that were amended or filed late
- Any portion of the federal refund received in 2021 due to excess FICA payments or the Fuel Tax Credit from federal form 4136 if they were claimed as a federal tax payment on line 31 of the 2020 Iowa return or line 33 of Iowa returns prior to 2020.
- Any portion of the federal refund that represents overpayment of Deemed Repatriation of Deferred Foreign Income.
For more information, please see Iowa 1040 Line 27
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