Iowa Composite Return 41-006

Composite Return 41-006
IA 1040C Composite Individual Income Tax Return (41006)
2022 IA 1040C Composite Individual Income Tax Return for Nonresidents

Partnerships, S Corporations, Trusts, and Limited Liability Companies for filing on behalf of Nonresident Partners,
Shareholders, Beneficiaries, or Members
For Fiscal year beginning ________ / _________, 2021, and ending _______ / ________ , 2022
STEP 1
Name and
Address

STEP 2
Exemptions
STEP 3
Composite
Income
STEP 4
Deductions

Company name:
FEIN: _____________________
_____________________________________________________________
This return is for:
Current mailing address: (number, street, apartment number, suite, PO Box)
(Check one)
_____________________________________________________________
Partners ☐
City, State, and ZIP:
Shareholders ☐
_____________________________________________________________
Beneficiaries ☐
Name of contact person:
Daytime phone:
Members ☐
________________________________ _____________________________
Enter the number of individuals (count) whose Iowa-source income exceeds the
minimum income requirement. See instructions. ...................................... Count ▲ _______ X $40 =$ __________
1. Enter the total Iowa-source income of all individuals whose Iowa-source income
exceeds the minimum income requirement. ..................................................................... 1.▲_____________ .00
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Deduction in lieu of federal tax deduction. See instructions. ....................... 2.▲ ____________ .00
Qualified business income deduction. Include IA 8995C ............................ 3.▲ ____________ .00
Standard deduction. Multiply exemptions count in Step 2 by $2,210.......... 4.▲ ____________ .00
Total deductions. ADD lines 2 through 4 .......................................................................... 5. ______________
Composite taxable income. SUBTRACT line 5 from line 1 .............................................. 6. ______________
STEP 5
Compute tax from Tax Rate Schedule. See instructions............................. 7.▲ ____________ .00
Tax
Iowa alternative minimum tax. See instructions .......................................... 8.▲ ____________ .00
Total tax. ADD lines 7 and 8. ............................................................................................ 9. ______________
STEP 6
Personal exemption dollar amount from Step 2 above. ............................... 10. _____________ .00
Credits
Other nonrefundable credits. Include IA 148 Tax Credits Schedule. ........... 11.▲ ___________ .00
Total nonrefundable credits. ADD lines 10 and 11. ........................................................... 12. _____________
Balance. SUBTRACT line 12 from line 9. If less than zero, enter zero. ............................ 13.▲____________
Iowa fuel tax credit. Include IA 4136............................................................. 14.▲ ___________ .00
Other refundable credits. Include IA 148 Tax Credits Schedule. ................. 15.▲ ___________ .00
Estimated and voucher payments made for the tax year. ............................ 16.▲ ___________ .00
Total credits. ADD lines 14, 15, and 16. ............................................................................ 17. _____________
STEP 7
If line 17 is more than line 13, subtract line 13 from line 17. This is the
Refund
amount you overpaid. ........................................................................................................ 18.▲____________
or
19. Enter the amount from line 18. This is the REFUND amount............................................ 19.▲____________
Amount
20. RESERVED FOR FUTURE USE. DO NOT USE THIS LINE. ..................... 20.▲ ___________ .00
Due
21. If line 17 is less than line 13, subtract line 17 from line 13
This is the AMOUNT OF TAX YOU OWE. ........................................................................ 21.▲____________
22. Penalty. See instructions. .................................................................................................. 22.▲____________
23. Interest. See instructions. .................................................................................................. 23.▲____________
24. TOTAL AMOUNT DUE. ADD lines 21, 22, and 23, and enter here. ................................. 24.▲____________
Make check payable to Iowa Department of Revenue
I, the undersigned, declare under penalties of perjury or false certificate, that I have examined this return, and, to the best of my
knowledge and belief, it is true, correct, and complete.

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Signature of officer: _____________________________________________

Preparer’s signature: ____________________________________________

Title: ________________________________________ Date: ____________

Preparer’s name: ______________________________

Daytime telephone number: ______________________________________

Preparer’s address: ____________________________
Preparer’s PTIN: ______________________________ Date: ____________
Firm name: ___________________________________________________
Firm’s FEIN:___________________________________________________
SIGN AND DATE YOUR RETURN.
MAIL TO: COMPOSITE RETURN PROCESSING
IOWA DEPARTMENT OF REVENUE
PO BOX 9187
DES MOINES IA 50306-9187

41-006a (09/22/2022)

2022 IA 1040C, page 2
Schedule NR List all Nonresident Partners, Shareholders, Beneficiaries, or Members with Iowa-source
income. All columns must be completed. In column E, enter yes or no to indicate whether the owner was
included on page 1 of the IA 1040C. If more space is needed, copy this schedule and enclose with this return.
A
Name

B
SSN/FEIN

C
Address

D
Iowa-Source Income

E

Yes/No

41-006b (06/22/2022)

2022 IA 1040C Instructions, page 1
Instructions for Composite Iowa Individual Income Tax Return for Nonresidents
Important—Read Before Completing !
This 2022 IA 1040C may only be used by a
pass-through entity with a fiscal tax year to
report a nonresident owner’s income earned
during the entity’s tax year that began in
2021 and ended in 2022. It shall not be used
to file on a composite basis for any tax year
of a pass-through entity that began on or
after January 1, 2022. See the 2022 IA PTEC Iowa Composite Return for more
information on new composite return
requirements that apply to tax years
beginning on or after January 1, 2022. A
pass-through entity may be required to file
both a 2022 IA 1040C and a 2022 IA PTE-C.
Filing Requirements
Nonresident partners, shareholders, members,
or beneficiaries who are individuals, trusts, or
estates can be included in a composite return if
they meet the following requirements:
A nonresident member must have enough
income to create a positive tax due. This
minimum income requirement is met when the
taxpayer’s Iowa-source income is reduced by
the standard deduction, tax is calculated, the
exemption credit is subtracted from the
calculated tax, and Iowa tax due is still greater
than $0.00. See IA 1040C instructions, page 2
for minimum income required based upon tax
brackets.
A nonresident member can be included if the
income from this entity is the only Iowa-source
income the member received for this tax year.
Members with income from multiple Iowa
sources must complete IA 1040 Iowa Individual
Income Tax Return.
Note: Enclose a copy of each nonresident
owner’s Iowa Schedule K-1 along with the IA
1065 or IA 1120S. Enclose a copy of each
nonresident beneficiary’s federal Schedule K-1
along with the IA 1041. All filers must complete
and enclose IA 1040C, page 2, Schedule NR.
Line Instructions
Line
1:
Each
nonresident
partner’s,
shareholder’s, or member’s Iowa K-1 will show
that partner’s, shareholder’s, or member’s
income and nonresident modifications that are
apportioned to Iowa. The apportioned amount of
each item of Iowa K-1 income that is a part of
federal adjusted gross income and the

apportioned modifications of all nonresident
partners, all nonresident shareholders, and/or
all members included in this composite return
are to be totaled and entered on this line.
Nonresidents with other Iowa-source income
are not to be included on IA 1040C.
Beneficiaries of a trust do not have an Iowa K1, only a federal K-1. Consequently, when
nonresident beneficiaries are included in the
filing of a composite return with Iowa, they must
total all income and/or capital gain from real
property or tangible personal property located in
Iowa and any other business income
attributable to Iowa and enter on this line.
Line 2: A deduction is allowed in lieu of the
deduction for federal tax paid and is based upon
the following schedule:
Amount shown on line 1
Deduction
$0-$49,999
= No deduction
$50,000-$99,999
= 5% of line 1
$100,000-$199,999
= 10% of line 1
Over $200,000
= 15% of line 1
Line 3: Enter the amount from 2022 IA 8995C,
Step 5, line 4. Include IA 8995C with your return.
Line 8: Partners, shareholders, beneficiaries, or
members reporting income on the composite
return may also be subject to Iowa alternative
minimum tax. The Iowa alternative minimum tax
is imposed on most of the same tax preference
and adjustment items treated as exclusions for
federal alternative minimum tax purposes. See
form IA 6251 to determine if any Iowa alternative
minimum tax is due and enclose completed form
if necessary.
Line 11: Enter the total of the nonrefundable
credits from Part I of IA 148 Tax Credits
Schedule. You must complete IA 148 to include
the total of all members’ credits that are included
on this return. Beneficiaries must provide an
additional worksheet with the amount of the tax
credit for each member included on the return.
Line 14: Enter the amount of fuel tax credit from
IA 4136, line 8 attributable to the partners,
shareholders, members, or beneficiaries on this
return. The federal Schedule 4136 cannot be
used. The Iowa credit does not apply to fuel used
in on-road vehicles or pleasure boats.

41-006c (06/22/2022)

2022 IA 1040C Instructions, page 2
Line 15: Enter the total of the refundable credits
from Part II of IA 148 Tax Credits Schedule. You
must complete IA 148 Tax Credits Schedule to
include the total of all members’ credits that are
included on this return. Beneficiaries must
provide an additional worksheet with the amount
of the tax credit for each member included on
this return.
Line 16: Enter the total amount of estimated tax
payments and any of the prior year’s
carryforward applied to your estimated
payments for the tax year.
Line 22: Failure to Timely File a Return: A
penalty of 5% will be added to the tax due for
failure to timely file a return if the return is filed
after the original due date of the return and if at
least 90% of the correct amount of tax is not paid
by the original due date of the return.
Failure to Timely Pay the Tax Due: A penalty of
5% will be added to the tax due if the return is
filed by the original due date and at least 90% of
the correct amount of tax is not paid by the
original due date of the return. This penalty is in
addition to the penalty for failure to timely file, if
applicable.

Minimum Income
Requirement for Each
Tax Bracket
Not applicable
Not applicable
Not applicable
$3,176
$2,920
$2,881
$2,850
$2,748
$2,679

Audit or Examination Deficiency: A penalty of
5% will be added to the unpaid tax if the
Department discovers an underpayment during
an audit or examination.
Penalty for Willful Failure to File: A penalty of
75% will be added to the tax due for willful failure
to file a return or for filing with intent to evade
tax.
Waivers: Penalties can be waived under limited
circumstances, as described in Iowa Code
section 421.27. Complete and submit a Penalty
Waiver Request form (78-629) to request a
penalty be waived.
Line 23: Interest must be added to delinquent tax.
Interest is added at a rate of 0.4% per month
beginning on the due date of the return and
accrues each month until paid in full.
Line 24: Final payment for the return must be
made with form IA 1040V using the partnership’s,
limited liability company’s, S corporation’s, or
trust’s identification number. There is not an
electronic payment option.

IA 1040C Tax Rate Schedule
If Line 6 Is
Over
0
1,743
3,486
6,972
15,687
26,145
34,860
52,290
78,435

But Not
Over
1,743
3,486
6,972
15,687
26,145
34,860
52,290
78,435
Over

Tax Rate
0 plus
5.75 plus
17.43 plus
95.87 plus
456.67 plus
1,045.46 plus
1,564.87 plus
2,654.25 plus
4,599.44 plus

0.33%
0.67%
2.25%
4.14%
5.63%
5.96%
6.25%
7.44%
8.53%

Of
Excess
Over
0
1,743
3,486
6,972
15,687
26,145
34,860
52,290
78,435

41-006d (10/06/2022)