Iowa Out-of-State Credit
The Iowa Out-of-State Credit allows Iowa residents who are also residents of another state to claim a credit for taxes paid to that other state. This credit helps prevent double taxation on income earned in another state while residing in Iowa.
How to Claim the Iowa Out-of-State Credit
- Access your Iowa state tax return in the OLT (Online Taxes) software.
- From the left menu (or tap the three dots in the top-right corner on mobile), click on State.
- Select Start or Revisit Iowa state.
- Under the Credits section, choose IA 130 - Iowa Out-of-state Credit Computation.
- Click Save & Continue Return and follow the on-screen instructions.
Important Notes
- The credit is based on income tax paid to another state during the tax year.
- Nonresidents, part-year residents, and those claiming an Out-of-State Tax Credit should refer to the IA 1040 expanded instructions for guidance.
- Do not annualize any credit amount, but you must annualize any income or deduction used to compute the credit.
Source:
Form IA 2210 Schedule AI - Instructions for Line 8
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.