Iowa S Corporation Apportionment Credit 41-134

S Corporation Apportionment Credit 41-134
IA 134 S Corporation Apportionment Tax Credit, 41-134
2023 IA 134

Iowa S Corporation Apportionment Tax Credit
tax.iowa.gov
Shareholder name(s): ___________________________________________________________________
Social Security Number (SSN) or Federal Employer Identification Number (FEIN):____________________
S Corporation name: __________________________________ S Corporation FEIN: ________________
PART I – Taxpayer’s Share of S Corporation Income
1. Taxpayer’s share of net federal S corporation income. Enter the amount from
the “Balance. Total income minus total deductions” line of the IA 1120S
Schedule K-1, Part II, Column (a)............................................................................ 1. _______________
2. Taxpayer’s share of Iowa modifications. Enter the amount from the IA 1120S
Schedule K-1, Part II, Column (a), line 16 ............................................................. 2. _______________
3. Taxpayer’s share of all-source S corporation income for Iowa tax
purposes. Add lines 1 and 2 .................................................................................... 3. _______________
PART II – Allocation and Apportionment of Taxpayer’s S Corporation Income
4. Taxpayer’s share of Iowa-source S corporation income. Enter the amount
from the “Balance. Total income minus total deductions” line of the IA 1120S
Schedule K-1, Part II, Column (b) .......................................................................... 4. _______________
5. Taxpayer’s share of Iowa-source modifications. Enter the amount from
the IA 1120S Schedule K-1, Part II, Column (b), line 16 ...................................... 5. _______________
6. Taxpayer’s share of Iowa allocated income. Enter the amount from the
IA 1120S Schedule K-1, Part II, Column (b), line 17 ............................................ 6. _______________
7. Taxpayer’s share of Iowa-source S corporation income. Add lines 4-6 .............. 7. _______________
PART III – Credit Calculation
8. Cash or property distribution from income not previously taxed by Iowa ............ 8. _______________
9. Federal tax on S corporation income from Schedule A, line 9, of this IA 134..... 9. _______________
10. Subtract line 9 from line 8. If zero or less, enter zero............................................ 10. ______________
11. Enter the greater of line 7 or line 10 ...................................................................... 11. ______________
12. Iowa taxable income. Enter one of the following amounts, as applicable,
but exclude any Iowa net operating loss (NOL) carryforward deduction:
(a) Individuals: 2023 IA 1040, line 4.
(b) Trust/Estate: 2023 IA 1041, line 25.
(c) Electing Small Business Trust (ESBT): 2023 IA 1041, Schedule E, line 4 . 12. ______________
13. Subtract line 3 from line 12 .............................................................................. 13. ______________
14. Add lines 11 and 13 ......................................................................................... 14. ______________
15. Divide line 14 by line 12. Enter the result as a percentage rounded to
the nearest ten-thousandth of a percent (e.g. 12.3456%). If less than zero,
enter 0%. If 1 or greater, enter 100% .............................................................. 15. ____________ %

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2023 IA 134, page 2
16. Subtract line 15 from 100%. Enter the result as a percentage rounded to the
nearest ten thousandth of a percent ................................................................ 16. ____________ %
17. Iowa tax. Enter one of the following amounts, as applicable:
(a) Individuals: Subtract IA 1040, line 11 from IA 1040, line 5.
(b) Trust/Estate: Subtract IA 1041, line 32 from IA 1041, line 26.
(c) ESBT: Subtract IA 1041, line 32 from IA 1041, line 30 ............................... 17. ______________
18. S Corporation Apportionment Tax Credit for Full-Year Resident. Multiply line
16 by line 17, if zero or less, enter zero. If you were a full-year Iowa resident,
enter this amount in column D on Part I of the 2023 IA 148 Tax Credits
Schedule. If you were a part-year Iowa resident, proceed to Part IV ............... 18. ______________
PART IV – Credit Calculation for Part-Year Residents
19. Enter the total amount of S corporation income (loss) that was reported
as Iowa-source income on your 2023 IA 126, lines 1-24, or on your
2023 IA 1041, Schedule C, Column B, lines 1-8. This amount
CANNOT exceed the amount entered on line 3 of this IA 134 ........................ 19. ______________
20. From the total entered on line 19, enter the portion of that S corporation
income (loss) that was reported as earned while an Iowa resident
on your 2023 IA 126 or your IA 1041, Schedule C .......................................... 20. ______________
21. Divide line 20 by line 3. Enter the result as a percentage rounded to
the nearest ten-thousandth of a percent. If less than zero, enter 0%.
If 1 or greater, enter 100% ............................................................................... 21. ____________ %
22. Multiply line 18 by line 21, if zero or less, enter zero. If you were a
part-year resident, enter this amount in column D on Part I of the
2023 IA 148 Tax Credits Schedule .................................................................. 22. ______________
IA 148 Tax Credits Schedule must be completed

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Schedule A: Federal Income Tax Attributable to S Corporation Income

2023 IA 134, page 3

1. Enter the taxpayer’s share of net federal S corporation income from Part 1, line 1
of this IA 134 ................................................................................................................ 1. _________
2. Federal adjusted gross income from your 2023 federal 1040, line 11; or total income
from your 2023 federal 1041, line 9 .............................................................................. 2. _________
3. Divide line 1 by line 2. Enter the result as a percentage rounded to the nearest
ten-thousandth of a percent (i.e., 12.3456%). Do not exceed 100% ............................ 3. ________ %
4. Federal income tax before credits from your 2023 federal 1040, line 16; or your
2023 federal 1041, Schedule G, line 1a ....................................................................... 4. _________
5. Federal alternative minimum tax from your 2023 federal 1040, Schedule 2, line 1; or
your 2023 federal 1041, Schedule G, line 1c................................................................ 5. _________
6. Net federal income tax. Add lines 4 and 5 .................................................................... 6. _________
7. Multiply line 3 by line 6 ................................................................................................. 7. _________
8. Federal income tax credits related to the S corporation (exclude backup withholding
and fuel tax credit) ........................................................................................................ 8. _________
9. Federal income tax attributable to S corporation income. Subtract line 8 from line 7.
Enter on line 9 of this IA 134 ........................................................................................ 9. _________

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2023 IA 134 Instructions, page 1
What’s new for tax year 2023
This form has been redesigned for tax years
beginning on or after January 1, 2023. In order to
complete this form, you will need your IA
Schedule K-1 received from your S corporation,
your 2023 IA 1040 or IA 1041, and your 2023
federal 1040 or 1041. If you are a part-year
resident, you will also need your 2023 IA 126.
About the Iowa S Corporation Apportionment
Tax Credit
Shareholders of S corporations who are Iowa
resident individuals, or who are estates/trusts with
a situs in Iowa, may be eligible for an S
Corporation Apportionment Tax Credit if the S
corporation carries on business within and without
Iowa.
If an eligible shareholder claims the S Corporation
Apportionment Tax Credit, and then does not
claim the S Corporation Apportionment Tax Credit
in the following tax year, the shareholder cannot
claim an S Corporation Apportionment Tax Credit
for three tax years immediately following the tax
year in which the shareholder declined to claim
the tax credit, unless the Director of the Iowa
Department of Revenue consents to the election.
Example: A resident individual shareholder of an
S Corporation claims the S Corporation
Apportionment Tax Credit in tax year 2022. They
do not claim the S Corporation Apportionment Tax
Credit in tax year 2023. As a result, they cannot
claim the S Corporation Apportionment Tax Credit
with respect to that S Corporation’s income in tax
years 2024, 2025, or 2026, unless the Director of
the Iowa Department of Revenue consents to the
election.
If a taxpayer claims the S Corporation
Apportionment Tax Credit, the taxpayer may not
claim an Iowa Out-of-State Tax Credit (IA 130) for
income taxes paid by the taxpayer or the S
Corporation to another jurisdiction on the S
corporation income.
For married taxpayers filing separately, each
spouse must calculate a separate credit on a
separate IA 134.
If a taxpayer is a shareholder in multiple S
corporations, a separate IA 134 must be
completed for each S corporation.
Each S Corporation Apportionment Tax Credit
must be reported on a separate line of Part I on
the 2023 IA 148 Tax Credits Schedule. Include the

S corporation name in column M and the FEIN in
column N of Part IV on the IA 148.
Line Instructions
Line 8: Cash or Property Distributions from
Income Not Previously Taxed by Iowa
Enter the amount of cash of property
distributions from income that were not
previously taxed by Iowa. This includes the
amount of all cash distributions and the fair
market value of all property distributions made
during the year, except for the following
exclusions:
a. Distributions of income excluded from Iowa
tax under Iowa Code section 422.7 (example:
interest from federal securities or certain
securities issued by Iowa). This exclusion
does not include any distribution from income
apportioned outside of Iowa pursuant to a
prior S Corporation Apportionment Tax Credit
claim.
b. Distributions from income previously taxed by
Iowa for a year in which the S corporation was
a C corporation and which is taxed as a
dividend or capital gain for federal income tax
purposes.
c. Distributions from income previously taxed by
Iowa for a year prior to the first tax year the
resident shareholder elected to claim the S
Corporation Apportionment Tax Credit.
d. Distributions paid from income for which the
corporation can show that Iowa tax has been
previously paid. This exclusion does not
include any distribution from income
apportioned outside of Iowa pursuant to a
prior S Corporation Apportionment Tax Credit
Claim.
For
additional
information,
see
Iowa
Administrative Code rule 701–403.3.
Line 18: S Corporation Apportionment Tax
Credit for Full-Year Resident
If you are a full-year resident, enter this amount
in column D of Part I on the 2023 IA 148 Tax
Credits Schedule; use tax credit code 11 in
column A and leave column B blank. Any credit
in excess of the tax liability cannot be carried
forward and should be entered as expired in
column G of the IA 148. Part-year residents must
also complete lines 19-22 before claiming the
credit.
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2023 IA 134 Instructions, page 2
Line 19: Your S corporation income (loss)
reported on your 2023 IA 126, lines 1-24, or on
your 2023 IA 1041, Schedule C, Column B, line
1-8, will include the total amount earned while
you were an Iowa resident, and the portion
attributable to Iowa earned while you were a
nonresident. Report both amounts on this line.
Line 20: From the total amount reported on line
19, enter the total amount earned while you were
an Iowa resident. Do not include the portion
attributable to Iowa earned while you were a
nonresident.
Line 22: S Corporation Apportionment Tax
Credit for Part-Year Resident
If you are a part-year resident, enter this amount
in column D of Part I on the 2023 IA 148 Tax
Credits Schedule; use tax credit code 11 in
column A and leave column B blank. Any credit
in excess of the tax liability cannot be carried
forward and should be entered as expired in
column G of the IA 148.
Include this form and the IA 148 with your IA
1040 or IA 1041.

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