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                       2020 IA 1065 Partnership Return of Income 

Who Must File                                           property,  the amount of income apportioned to 
Every partnership deriving income/loss from real,  Iowa is to be based on  that  portion  which  the 
tangible, or intangible property owned within Iowa  gross sales made within the state bears to the 
or from a business carried on within Iowa must file.  total gross sales of the partnership. The sale of 
The Iowa partnership form must also be used by  tangible personal property occurs in Iowa if the 
syndicates,  pools,  joint  ventures,  limited  liability  property is shipped or delivered to a point within 
companies,  and  other  similar  entities  required  to  Iowa, regardless of the Freight on Board (FOB) 
report  activities  on a  federal partnership return.  point  or  other  conditions  of  the  sale.  If  the 
Note: Only partnerships with activity (income/loss)  partnership’s  distribution  includes  income 
from Iowa sources or which are domiciled in Iowa  derived  from           business    other    than      the 
are required to file. A non-Iowa partnership should  manufacture  or  sale  of  tangible  personal 
not file only because one or more of its partners  property,  it  is  to  be  apportioned  to  Iowa  in  the 
are Iowa residents or because the partnership is  ratio to which the Iowa gross receipts bear to the 
registered with the Iowa Secretary of State.            total  gross  receipts  of  the  partnership.  The 
                                                        partnership will provide  each  partner  a  copy  of 
Distribution of Partnership Income 
                                                        the IA Schedule K-1, which will show how the 
A partnership is not a taxable entity in Iowa, but 
                                                        Iowa  portion  of  the  partnership  income  is 
the members of a partnership are taxed on their 
                                                        apportioned to each partner. 
individual shares whether actually distributed  to 
them  or  not.  This  pass-through  income  is          Tax Preference Items 
reportable  on  the  partner’s  individual,  trust,  or If  the  partnership  had  tax  preference  or 
corporate tax return.                                   alternative minimum tax (AMT) adjustment items, 
                                                        they will be allocated to the partners in the same 
Individual Partners: If the tax year of a partner 
                                                        ratio  as  net  income  from  the partnership  is 
is  different  from  that  of the  partnership,  the 
                                                        allocated.  The  partners  may  be  subject  to  the 
distributable  share  is  to  be  included  in  the 
                                                        Iowa  AMT  on  the  items  of  tax  preference  or 
individual return  for  the  year  in  which  the  tax 
                                                        adjustments allocated to them. 
year  of  the  partnership  ends.  When filing Iowa 
individual income tax returns, all partners must        Iowa Resident Out-of-State Tax Credit 
report all partnership income that is reportable on     2020 Iowa Acts, House File 2641, Division XVII, 
the  partner’s  federal  return  on  the  IA  1040.     modified the Iowa Out-of-State Tax Credit for tax 
Modifications  may  be  reported  on  the  “Other       years beginning on or after January 1, 2020, to 
adjustments”  or  “Other  income”  lines  of  the  IA   allow Iowa residents to claim the credit for certain 
1040.  In  addition,  nonresident  partners  must       entity-level income taxes paid by a pass-through 
report all Iowa-source income and adjustments on        entity (partnership, S corporation, fiduciary)  to 
IA 126, Iowa Nonresident and Part-Year Resident         another state, local jurisdiction, or foreign country 
Credit. Individual income tax filing requirements       on income also subject to tax in Iowa, but only if 
are available in the IA 1040 instruction booklet.       the partner  receives a supplemental schedule 
These  instructions  are  available  on the             from   the        partnership reporting      certain
Department website (tax.iowa.gov).                      information.  If the  partnership paid  entity-level 
                                                        income tax (including composite return income 
Composite Filing 
                                                        tax) to another state, local jurisdiction, or foreign 
A  partnership  may  file  an  Iowa  composite 
                                                        country on the distributive share of the partner’s 
individual income tax return and pay any tax due 
                                                        income also subject to tax in Iowa,  provide a 
on behalf of the nonresident partners who have 
                                                        supplemental schedule to the partner with the IA 
no other Iowa income and meet minimum income 
                                                        Schedule K-1 that identifies the jurisdiction and 
requirements.  See  IA  1040C for  further 
                                                        the  partner’s pro-rata  share  of the income, tax 
information. 
                                                        liability, and tax paid in that jurisdiction. A partner 
Apportionment of Iowa-Source Income                     will not be permitted to claim an Out-of-State Tax 
If a  partnership’s  income  is  from  the              Credit on the IA 130 for that income tax unless 
manufacture  or  sale  of  tangible  personal           the partner receives that supplemental schedule 

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from the partnership and submits a copy with the      Fuel Tax Credit 
IA 1040.                                              If the partnership does not have a fuel tax refund 
If the partnership is  itself  an owner  of  another  permit or has canceled its  refund  permit  within 
pass-through entity that paid entity-level income     the first 30 days of the year, a Fuel Tax Credit 
tax to another state, local jurisdiction, or foreign  may  be  claimed  by  each  partner  on  his  or  her 
country on income also subject to tax in Iowa, and    individual  income  tax  return (or  by a C 
the partnership receives a schedule from  that        corporation if it is a partner). If a Fuel Tax Credit 
pass-through entity identifying the jurisdiction and  is claimed, complete the IA 4136 and include it 
the partnership’s pro-rata share of the income,       with  the  IA  1065.  Each  partner’s  share  is 
income tax liability, and income tax paid in that     recorded in Part III of the partner’s IA Schedule 
jurisdiction, the partnership may in turn report that K-1. 

income tax to its partners on a supplemental          Other Tax Credits 
schedule with the partner’s IA Schedule K-1. The      Partners may  qualify for  various tax credits 
supplemental schedule  must  identify the             passed through to them by the partnership. The 
jurisdiction and pass-through entity that paid the    partnership must  complete the  appropriate 
income  tax, and  the partner’s pro-rata share of     form(s), where  applicable, to  compute  these 
that income, income tax liability, and income tax     credits (for example: IA 128, IA 137) and include 
paid. The partnership may not report this tax to its  them with  the  IA 1065. The partnership is not 
partners as described above if the partnership        required  to complete an  IA  148 Tax Credits 
does not receive the appropriate schedule from        Schedule. Each partner’s share of  Iowa  tax 
the  other  pass-through entity.  The  partnership    credits must be recorded  in Part III  of the 
should keep the schedule it  received from the        partner’s  IA Schedule K-1 including certificate 
other pass-through entity because the                 numbers. Partners must complete the IA 148 to 
Department may request it of the resident partner     claim credits, reporting the partnership in Part IV 
in order to prove the credit claimed on the IA 130.   as the pass-through entity. 
The resident partner is responsible for providing 
documentation of the out-of-state tax paid by a       Time and Place for Filing 
pass-through entity at the Department’s request.      The Iowa partnership return must be filed on or 
                                                      before the last day of the fourth month following 
Example:  Partnership X earns $2,000 of income        the close of the  partnership’s  tax year. For 
in State A, which imposes an entity-level income      calendar  year  filers,  the  due  date  is  April 30, 
tax directly on the partnership.  Partnership X       2021. There is an automatic 6-month extension 
pays $100 of income tax to State A. Partnership       of time to file after April 30, 2021. No extension 
X is owned 50% by Partnership Y, and provides         request form is required. Mail returns to Income 
a schedule to Partnership  Y indicating that  Y’s     Tax  Return  Processing,  Iowa  Department of 
pro-rata share of the income taxed by State A is      Revenue,  Hoover  State  Office  Building,  Des 
$1,000, and Y’s pro-rata share of the income tax      Moines, Iowa 50306-9187. Partners  with  pass- 
imposed by  and  paid  to State A  is  $50.           through  income  need  to  review  individual, 
Partnership  Y is  owned  50% by  individual  Z, a    Limited Liability Company (LLC),  trust,  or 
resident of Iowa.  Partnership Y provides a           corporate  income  tax  due  dates  and  filing 
schedule to individual Z indicating  that Z’s pro-    requirements. These instructions are available 
rata share of Partnership X’s income taxed by         on the Department website (tax.iowa.gov). 
State A  is $500, and Z’s pro-rata share of 
Partnership X’s income tax imposed by and paid        Amended Return 
to State A is $25. Individual Z may use the income    If an amended federal return or a federal 
and tax  amounts reported on  that  schedule in       administrative adjustment request was filed, 
completing Z’s IA 130  Iowa Out-of-State Tax          the taxpayer must file an amended Iowa return 
Credit Schedule, provided that  the $500 of           and include the IA 102 Amended Return 
income identified on the schedule is also reported    Schedule. Use the 1065 to file and check the 
on individual Z’s IA 1040 return and is taxed by      “Amended Return” box. 
Iowa.

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Federal Centralized Partnership Audit Iowa Pass-through Entity Audits
Regime For tax year 2020 and forward, any audit of a
Prior to tax year 2018, federal partnership audit pass-through entity (partnership, S corporation,
adjustments and tax collection was generally fiduciary) by the Department will be conducted
administered at the partner level. For tax years solely at the pass-through entity level through
2018 and forward, the IRS makes audit the entity’s state representative. If a pass-
adjustments and generally collects taxes at the through entity is audited by the Department
partnership level for partnerships subject to the resulting in adjustments to Iowa tax liability, the
federal centralized partnership audit regime. If a pass-through entity and its owners must follow
partnership under this regime is audited by the certain procedures and timelines for reporting
IRS resulting in adjustments that affect Iowa tax the adjustments to Iowa and paying any resulting
liability, the partnership and its direct and indirect Iowa tax. For more information, see the IA 102
partners must follow certain procedures and Amended Return Schedule, the IA 103 Pass-
timelines for reporting the adjustments to Iowa through Election to Pay Return and Voucher,
and paying the resulting Iowa tax, even if the and the instructions below for the IA 1065, line
partnership or partners were not responsible for 10. See also Iowa Code §§ 422.25B and
filing a federal amended return or paying 422.25C. These provisions may be applied to a
additional federal tax. Similar procedures and tax year prior to 2020 if the Department, the
timelines also apply to an affected partnership pass-through entity, and the pass-through entity
and its direct and indirect partners for owners agree.
amendments to returns requested on a
For Additional Information
centralized administrative adjustment request
Contact Taxpayer Services at 515-281-3114
(AAR). For more information, see the IA 102
or 800-367-3388 8 a.m. - 4:30 p.m. CT or
Amended Return Schedule, the IA 103 Pass-
email idr@iowa.gov.
through Election to Pay Return and Voucher,
and the instructions below for the IA 1065, line Federal Partnership Return
10. See also Iowa Code § 422.25A. A copy of the federal partnership 1065 return
and all other supporting schedules must be
included with this form. Do not include federal
Schedule K-1.

Completing the Return
Calendar Year or Fiscal Year location. Non-Iowa partnerships without an
If the partnership operates on a fiscal year basis, Iowa location should enter 00. A list of
enter the beginning and ending dates here, county numbers can be found on the
otherwise leave blank. The Iowa partnership Department website (tax.iowa.gov).
return must be made on the same period basis • Enter the business code number provided by
as the partnership accounts are required to be the Internal Revenue Service (IRS) for the
kept for federal tax purposes, even if partners specific industry group corresponding to the
report their income on a different year basis. partnership’s primary business activity
available at the IRS website (irs.gov).
Part I: Partnership Name and Address
• Enter the state partnership representative and
• If the partnership has a Federal Employer
phone number. This is the person the
Identification Number (FEIN), it must be
partnership is appointing as the state
entered here. If the partnership has applied for
partnership representative for purposes of
but not yet received a number, enter “applied
Iowa Code § 422.25B. This should be the
for” and inform the Department of the number
same as the partnership’s federal partnership
once it is obtained. For information on
representative unless the partnership is
obtaining an FEIN, contact the IRS at 800-
designating a different person for Iowa
829-4933.
purposes.
• Enter the county number of the main Iowa

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 •  Enter a one or  two  word description of the       using these loans. 
  partnership’s principal activity.                    Line 1: Federal Taxable Income  – Net together 
 •  Enter the total number of partners and include     items of income or loss on the federal Schedule 
  their corresponding IA Schedule K-1s.                K and those deductions on federal Schedule K 
  Include one for each person  who was  a              that do not qualify as itemized deductions. Enter 
  partner at any time during the tax year.             the net figure on this line. 
Part II: Partnership Information                       Line 2:  Interest  –  Enter  the  total  amount of 
Check the type of return being filed: Partnership,     interest  and  dividends  from  foreign  securities, 
LLC, Limited Liability Partnership (LLP) or other.     from  securities  of  state  and  other  political 
                                                       subdivisions,  and  from  regulated  investment 
Answer  the  three  questions  about  the 
                                                       companies exempt from federal income tax and 
partnership’s  activities.If the answer is “No” to 
                                                       not exempt from Iowa income taxes. (Iowa Code 
all  three  questions, the  partnership  is  not 
                                                       § 422.7(2), (17); Iowa Admin Code Rs. 701-40.3, 
required to file an IA 1065, unless its commercial 
                                                       40.32, 40.52) 
domicile is in Iowa. If the answer is “Yes” to any 
question or if it’s commercial domicile is in Iowa,    Line 3:  Other Additions  –  Enter the  total 
the  partnership  must  file  an  IA  1065,  including amount of other additions to partnership 
the IA Schedule K-1. If the commercial domicile        income required under Iowa  law.  Include a 
is in  Iowa  and  the answer is  “No”  to  all  three  schedule  describing the type and amount of 
questions,  enter  “zero”  in  column  (b)  of  the IA each addition.  If  the  partnership  is  also  a 
Schedule K-1 for each nonresident partner. If the      member  of  another  partnership  or  the 
answer to any  question  is  yes,  a  percentage       beneficiary  of  an  estate  or  trust,  enter  the 
greater than zero must be entered in column (b)        partnership’s distributive share of Iowa additions 
of  the  IA Schedule  K-1  for  each  nonresident      furnished  by the other partnership, estate, or 
partner.                                               trust. Consult    the following  forms     and
                                                       worksheets: 
Part III: Modification of Partnership Income 
                                                       •
Part III is used to document those modifications          IA 4562A—Section 179 expensing and bonus 
or adjustments to  federal  1065 Schedule K             depreciation adjustments 
                                                       •
income that are required by Iowa Code        section      IA 8824 Like-Kind Exchange Worksheet. For 
422.7 and Chapter 40 of the Iowa Administrative         tax years 2020 or later, this worksheet should 
Code to the extent applicable to partnerships, in       only be  used to compute related party 
order to show the total modified net income from        transactions and federal installment sale 
the partnership.                                        gains related to like-kind exchanges of 
                                                        personal property completed prior to tax year 
Conformity with  the  Internal Revenue  Code            2020. 
(IRC)—For tax years beginning on or  after             •  IA 101 Nonconformity Adjustments  
January 1, 2020,  Iowa has adopted rolling             •  IA 163 Interest Expense Adjustment 
conformity, meaning the state will automatically 
conform to any changes made to the IRC, except         Line 5: Federal Securities Interest – Enter  the 
as specified by Iowa law.                              total  interest  received  from  federal  securities 
                                                       such  as U.S. Treasury bonds, notes, bills, and 
Paycheck Protection Program  (PPP)—PPP                 savings  bonds  included  in  taxable income  for 
loans  that  are  forgiven and properly excluded       federal income tax purposes. Include any loss on 
from gross income for federal purposes will also       the sale or exchange of a share from a regulated 
qualify for  exclusion from income for Iowa tax        investment company held for six months or less 
purposes.  For  tax years beginning on or after        to  the  extent  the  loss  was  disallowed  under 
January 1, 2020,  Iowa fully conforms to the           section  852(b)(4)(B)  of  the  Internal  Revenue 
relevant    tax  provisions      of the      federal   Code. (Iowa Code § 422.7(1), (17); Iowa Admin 
Consolidated  Appropriations Act, 2021 (P.L.           Code Rs. 701-40.2, 40.32, 40.52) 
116-260)  including  the provisions allowing 
                                                       Line 6:  Other Reductions     – Enter  the total 
certain deductions for business  expenses  paid 
                                                       amount of other reductions to partnership income 
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required or allowed under Iowa law.  Include a        Line 8:  Net Modifications – This  line  could 
schedule describing the type and amount of each       result in either a positive or negative number. 
reduction. If the partnership is also a member of     Line  10:  Election  to Pay  after Audit – Under 
another  partnership  or  the beneficiary  of  an     certain circumstances, a partnership may elect to 
estate  or  trust,  enter  on  this  line  the        pay on its partners’ behalf the Iowa tax, penalty, 
partnership’s distributive  share     of  Iowa        and interest resulting from a federal centralized 
reductions furnished by the other partnership or      partnership audit or an Iowa pass-through entity 
estate  or  trust.  Examples of Iowa  reductions      audit. The election and the payment calculation 
include the following:                                are made on the IA 103 Pass-through Election to 
• Federal Work Opportunity Tax Credit, Employer       Pay Return and Voucher. If you are making an 
  Social Security Credit for Tips, or Alcohol and     election to pay on the IA 103 related to the audit 
  Cellulosic Biofuel  Credit, to the  extent  such    adjustments reported  on  this return, report  on 
  credits increased  federal partnership income.      this line  the total amount of  tax, penalty, and 
  (Iowa Code  §  422.7(8), (9), (30); Iowa  Admin     interest you calculated and paid with your IA 103. 
  Code Rs. 701-40.9, 40.49)                           When an election to pay on your partners’ behalf 
• Additional deduction for  wages paid to new         is made,  do not issue amended IA 1065 
  employees  who qualify  as persons with             Schedule K-1s  to  your partners, but instead 
  disabilities  or as ex-offenders. (Iowa  Code  §    notify  the  partner of all of the following in a 
  422.7(12), (12A); Iowa  Admin Code Rs.  701-        separate letter or schedule:  (1) identify the 
  40.21)                                              partner’s distributive  share of the audit 
• To the  extent  included  in the partnership’s      adjustments, (2) notify the partner that you have 
  taxable income on line 1 of  the  IA 1065,  the     elected to pay  the resulting Iowa  tax,  penalty, 
  amount of any  financial assistance grant           and interest on  their behalf, and (3) notify the 
  provided  to an eligible small business by  the     partner that the  partner  shall not  claim any 
  Iowa Economic Development Authority under           deduction, credit, or refund for the amount paid 
  the  Iowa small business  relief grant program      by the partnership,  and the partner  may not 
  created  during  calendar year  2020 to provide     include the  amount paid on  the partner’s  Iowa 
  financial assistance to eligible small businesses   return in any manner. 
  economically impacted by  the COVID-19 
                                                      Part IV: Business Activity Ratio (BAR) 
  pandemic. 
                                                      If the partnership is doing business wholly within 
• To the extent included in the partnership’s         Iowa, skip lines 1 - 12 and enter 100.00 on line 
  taxable income on line 1 of  the IA 1065, the       13.  If  the  partnership  is  doing  business  both 
  amount of a federal, state, or local grant provided within and without Iowa, complete all applicable 
  to a communications service provider during the     lines.  Dividends  are  net  of  special  deductions. 
  tax year, if the grant was used to install          Business  income  means  income  which  arises 
  broadband service in targeted service areas at or   from the partnership’s unitary trade or business, 
  above the download and upload speeds.               a  part  of  which  is  conducted  within  Iowa. 
Also consult the following forms and worksheets:      Business income must be apportioned to Iowa by 
•  IA 4562A—Section 179 expensing and bonus           means of the BAR. Investment  income  may  at 
  depreciation adjustments                            the  taxpayer’s  election  be  included  in  the 
•  IA 8824  Like-Kind Exchange Worksheet. For         computation of the BAR. The taxpayer will have 
  tax years 2020 or later, this worksheet should      elected whether to include investment income in 
  only be used  to  compute related party  trans-     the computation of the BAR for that year and all 
  actions and federal  installment sale gains         subsequent years. Consequently, that year and 
  related to  like-kind  exchanges of personal        for  subsequent  years  total  investment  income 
  property completed prior to tax year 2020.          which is determined to be business income will 
•  IA 101 Nonconformity Adjustments                   be  Included  in  the  numerator  as  follows  (see 
•  IA 163 Interest Expense Adjustment                 Iowa  Admin Code Rs.  701-54.2(3) for 
•  IA 163A    Interest    Expense     Carryover       clarification): 
  Adjustment                                          •  Accounts receivable interest is to be included 
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in the numerator to the extent allocable to Iowa. • Other investment income including interest,
• All investment income that is business net dividends, capital and ordinary gains, and
income, including capital gains or losses, royalties from intangibles must be included in
must be included in the computation of the the numerator if the commercial domicile is in
BAR if the investment income is derived from Iowa.
intangible property that has become an
Signature
integral part of some business activity
The return must be signed and dated by a
occurring regularly in or outside of Iowa.
partner or member. The return will not be
• Capital and ordinary gains or losses, or rent
considered valid unless this requirement is
and royalties from real property must be
met. Also include the signer’s title and
included in the numerator for property located
daytime phone number.
in Iowa.
Instructions for IA 1065 Schedule K-1

IA Schedule K-1 shows each partner’s share of Schedule K-1 in the year of such disposition.
modifications, all-source income, Iowa Attach a schedule explaining the changes to both
apportioned income, and Iowa tax credits. the partner’s copy of the K-1, and to the
Complete information for each partner in an partnership’s own Iowa return.
acceptable format must be provided. IA 1065 and
Part I: General Information
IA Schedule K-1 are provided on our website.
Individual partners: When completing the Partnership/Limited Liability Company (LLC)
individual IA 1040, report the amounts shown on information
the federal Schedule K-1. These amounts should Enter name and Federal Employer Identification
match the IA Schedule K-1, column (a) items. In Number (FEIN) of partnership on each IA
addition, individual nonresident partners must use Schedule K-1.

the apportioned totals from column (c) when Partner Information
completing the Iowa IA 126, Iowa Nonresident and • Enter name, Social Security Number (SSN) or
Part-year Resident Credit.
FEIN, and address of partner. In the case of a
Substantial built-in loss nonconformity for disregarded entity, enter the applicable
transfer of partnership interest that occurred information of the beneficial owner.
in tax year 2018. • Check either the resident partner or
Iowa did not conform to IRC section 743(d)(1)(B) nonresident partner box, based on the
for transfers of partnership interests occurring in partner’s current address.
tax year 2018. This means that if a partner was • Check the amended box if the IA Schedule K-
transferred a partnership interest in tax year 2018 1 is part of an amended 1065 return. If the
which had a substantial built-in loss for federal partnership is amending for a federal
purposes solely as a result of that provision (in centralized partnership audit change or an
other words, not as a result of IRC section Iowa pass-through entity audit change and is
743(d)(1)(A) or an election under IRC section electing to pay with an IA 103, do not reissue
754) then no substantial built-in loss existed for the K-1. Instead, the partnership will need to
that transfer for Iowa purposes, and the resulting send a letter to the partner as described on the
adjustments to the transferee partner’s basis instructions above for the IA 1065, line 10.
under IRC section 743(b) did not apply for Iowa Check the appropriate box for the partner’s
purposes. This may result in differences in the entity type.
amount of federal and Iowa income or loss in the • Enter partner’s percentage of ownership in the
years in which the partnership disposes of partnership.
property affected by this basis adjustment. If this • Enter the partnership’s Iowa receipts, as
occurs, adjust for the items of income and loss to reported on page 1, Part IV, line 12, column A,
the affected partner and include the net result as of the IA 1065
an adjustment on line16a of that partner’s IA 1065

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• Enter the partnership’s total receipts, as Line 16(b): For nonresident partners only, enter
reported on page 1, Part IV, line 12, column B, the Iowa BAR.
of the IA 1065. If Business Activity Ratio (BAR) Line 16(c): For nonresident partners only,
is 100%, enter the Gross Receipts from line 1a, multiply line 16(a) by the percentage on line
page 1 of the federal 1065. 16(b) and enter here. Nonresident partners: If this
• Corporate partners: Include your share of the entry is a positive amount, also enter it on line 14
partnership’s Iowa receipts and total receipts in of the IA 126. If this entry is a negative amount,
the BAR on the IA 1120. enter it on line 24 of the IA 126.
• Enter the partnership’s BAR from page 1, Part
Part III: Partner’s Portion of IA
IV, line 13, of the IA 1065.
Credits/Withholding: If the partnership
• Answer yes or no to the question of whether the
submitted Iowa withholding for the partner, enter
partnership is including additional attachments
it in the current year amount column on the first
with the K-1.
line of the schedule. If none, enter zero.
Part II: Partner’s Pro Rata Share Items: Note: If paying a nonresident an Iowa nonwage
Column (a), lines 1 through 15(f): payment, Iowa income tax must be withheld at a
Enter the same amounts as shown on the rate of 5% of the payment amount. The
federal Schedule K-1. partnership must register with the Iowa
Resident shareholders complete column (a) Department of Revenue for withholding tax using
only. the Iowa Business Tax Registration form.
Nonresidents who prefer to make an Iowa
Column (b), lines 1 through 15(f):
estimated payment instead must file an Iowa
For nonresident partners only, enter the
Nonresident Request for Release from
partnership’s single factor Iowa BAR. The BAR
Withholding form and submit the form with their
in column (b) must be applied equally to each line
first estimated payment prior to April 30, 2021. If
item in column (a); no method of separate
a partnership is filing an IA 1040C return on
accounting is allowed. Please contact the
behalf of its nonresident partners no withholding
Department for more information on the BAR for
or estimated payments are required.
investment partnerships.
For all other credits, enter the tax credit name in
Column (c), lines 1 through 15(f):
the first column. For awarded credits, enter the
For nonresident partners only, multiply the certificate number in the second column. Enter
amounts in column (a) by the percentage in
the partner’s share of the current year amount in
column (b) and enter the product in column (c)
the third column.
for each line item. This is the amount
apportionable to Iowa. Nonresidents: These
figures may be reportable on your IA 126
nonresident schedule.
Line 12(a): Enter the same amount as shown on
the federal Schedule K-1.
Line 15(f): Include a schedule showing the
name and amount for each item reported on line
15(f).
Line 16(a): Enter the partner’s all-source
modifications. This figure is equal to the
partnership’s all-source modifications multiplied
by the partner’s ownership percentage.
Individual partners: If this figure is a positive
amount, report it on line 14 of the IA 1040. If this
figure is a negative amount, report it on line 24 of
the IA 1040.
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