Iowa 2013: Net Investment Income Tax
New for 2013 – the federal 1040 tax return includes the new net investment tax credit. A taxpayer is subject to this tax based on their investment income and their adjusted gross income. This tax amount is not a deduction on an Iowa return until the year it is paid.
Certain Iowa customers, who had net investment income tax on their Federal return, may have filed an incorrect Iowa tax return.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if all of the following apply to you:
- You filed your Iowa state tax return prior March 20, 2014 AND
- You have an amount on your Federal Form 1040, Line 60 AND
- The box “b” on that line 60 is checked indicating that you had net investment income tax on form 8960 AND
- That amount of tax is included on your Iowa Form 1040, Line 32, federal estimated tax payments made in 2013.
If you are affected, you may have underpaid your Iowa tax. You may need to amend your Iowa return.
Note: If Iowa Department of Revenue has already contacted you on this issue and corrected the return, you do not need to amend your return.
To amend your return:
- Follow these step-by-step instructions.
- After you make the changes to your tax return, you will need to mail a copy of your amended state return.
- Your printed return will include instructions on how and where to mail it.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the IA 2013: Net Investment Income Tax.