Iowa Other Adjustments
When filing your Iowa state income tax return, you may need to make various adjustments to your taxable income. These adjustments are typically claimed using specific Iowa tax forms and are designed to provide relief or credits for certain types of income or circumstances. Below are key adjustments available in Iowa for the 2025 tax year.
Capital Gain Deductions
Iowa offers several capital gain deductions for specific types of property and business activities. These deductions are claimed using Forms IA 100A–IA 100J. The most common include:
- Form IA 100B – Capital Gain Deduction for Real Property Used in a Farm Business
- Form IA 100C – Capital Gain Deduction for Real Property Used in a Non-Farm Business
- Form IA 100D – Capital Gain Deduction for Timbers
- Form IA 100E – Capital Gain Deduction for a Business
- Form IA 100F – Capital Gain Deduction for ESOP (Employee Stock Ownership Plan)
- Form IA 100G – Capital Gain Deduction for Retired Farmers
- Form IA 100H – Capital Gain Deduction for Real Property Used in a Farming Business
- Form IA 100J – Capital Stock Election Deduction
Research Activities Credit
Iowa provides a credit for research activities through:
- Form IA 128 – Iowa Research Activities Credit
- Form IA 128S – Alternative Simplified Research Activities Credit
Franchise Tax Credit
The Franchise Tax Credit is available to shareholders and is claimed using:
- Form IA 147 – Franchise Tax Credit
Additional Adjustments
Other adjustments may include:
- Iowa Taxable Income Additions – Adjustments to taxable income under the Additions section.
- Iowa Lump-Sum Tax – Claimed under the Taxes section.
- Third Party Designee Information – Added under Primary Information.
To add any of these forms in Online Taxes (OLT) software, navigate to the State section, select Iowa, and follow the on-screen prompts under the appropriate section (e.g., Return Checklist, Credits, Additions).
Source:
Form IA 100G - Capital Gain Deduction for Retired Farmers
Form IA 100H - Capital Gain Deduction for Real Property Used in a Farming Business
Form IA 100J - Capital Stock Election Deduction
Form IA 147 - Franchise Tax Credit
Iowa State Instruction - Individual Income Tax Forms
Note: Always verify details with the official Iowa Department of Revenue forms and instructions.