Iowa - Credit for Taxes Paid to Another State
Online · Written guide Content date 1 min read
Note: The best practice when entering multiple state tax information into Tax Processors Plus Online is to start with the nonresident return(s) and finish with the resident return. This allows the income tax data from the nonresident state(s) to transfer to the resident return.
Iowa residents may claim a nonrefundable credit for taxes paid to another state. The income must be taxed by both jurisdictions. This credit is for state, local, or foreign government income taxes imposed on a taxpayer's income.
Before starting the Iowa return, prepare the nonresident return(s). Once all nonresident returns are finished, create the Iowa resident return and Tax Processors Plus Online will automatically calculate the credit based on the nonresident return information.
If the Iowa return is for a part-year resident, print a copy of the nonresident return(s) to refer to when entering the information for the credit.
To enter or adjust the credit for taxes paid to another state in the Iowa individual tax return in Tax Processors Plus Online, from the Iowa Return menu select:
- Credits
- Credit for Taxes Paid to Another State
Additional Information:
Which States does Iowa Have a Reciprocal Agreement With?
IA DOR: Out-of-State Credit Information
Tax Processors Plus Online strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.