If you are subject to the Federal phase-out of itemized deductions on your federal Schedule A, You must enter the revised Iowa phase-out amount here. To determine this amount, go to the IA form 41-104, Itemized Deduction Worksheet. Subtract line 1 from line 4 of step 3 and enter result here.

Alternative net Operating Loss Deduction

A net operating loss can be carried back or carried forwardto reduce taxpayer's alternative minimum taxable income. However, before the net operating loss can be deducted it must be reduced by any tax preference used in computing the net operating loss. In the case of a net opertaing loss for a tax year beginning after December 31, 1986, which is carried to the current tax year, the net operating loss on line 19 cannot exceed 90 percent of line 18. Any portion of the net operating loss which cannot be used can be carried over to the next year.

Nonresidents and Part Year residents

Nonresidents and part-year residents of Iowa are required to pay Iowa minimum tax only on the percentage of adjustments and tax preferences which are Iowa source.

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