Iowa Iowa Minimum Tax Computation 41-131

Iowa Minimum Tax Computation 41-131
IA 6251 (41131)
2022 IA 6251

Iowa Alternative Minimum Tax - Individuals
tax.iowa.gov
Name(s): __________________________________ Social Security Number: _____________________
PART I - Iowa Adjustments and Preferences. See instructions.
If you itemized deductions on Schedule A (IA 1040), start on line 1. If you did not itemize on your IA 1040,
start on line 2.
1. Taxes from IA 1040 Schedule A, line 8 ......................................................................... 1. __________
2. Refunds of taxes (exclude Iowa income tax) ................................................................ 2.( _________ )
3. Investment interest expense (difference between regular tax and AMT) ...................... 3. __________
4. Qualified small business stock ...................................................................................... 4. __________
5. Exercise of incentive stock options (excess of AMT income over regular tax income) . 5. __________
6. Estates and trusts [amount from federal Schedule K-1 (Form 1041)] ........................... 6. __________
7. Disposition of property (difference between AMT and regular tax gain or loss) ............ 7. __________
8. Depreciation on assets placed in service after 1986 (difference between regular
tax and AMT) ............................................................................................................ 8. ____________
9. Passive activities (difference between AMT and regular tax income or loss) ................ 9. __________
10. Loss limitations (difference between AMT and regular tax income or loss) ................ 10. __________
11. Circulation costs (difference between regular tax and AMT) ....................................... 11. __________
12. Long-term contracts (difference between AMT and regular tax income)..................... 12. __________
13. Mining costs (difference between regular tax and AMT) ............................................. 13. __________
14. Research and experimental costs (difference between regular tax and AMT) ............ 14. __________
15. Income from certain installment sales before January 1, 1987 ................................... 15.( _________ )
16. Other adjustments, including income-based related adjustments ............................... 16. __________
17. Total adjustments and preferences. Add lines 1 through 16 ....................................... 17. __________
PART II - Iowa Alternative Minimum Taxable Income
18. Taxable income from IA 1040, line 38......................................................................... 18. __________
19. Net operating loss deduction. Do not enter as a negative amount .............................. 19. __________
20. Add lines 17, 18, and 19 ............................................................................................. 20. __________
21. Iowa Alternative Minimum Tax net operating loss deduction. See instructions ........... 21. __________
22. Iowa Alternative Minimum Taxable Income. Subtract line 21 from line 20 .................. 22. __________

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2022 IA 6251 Iowa Alternative Minimum Tax – Individuals Page 2
PART III - Iowa Exemption Amount and Iowa Alternative Minimum Tax Based on Iowa Filing Status
23. Enter the applicable amount below based on your Iowa filing status:
• If filing status 1, 5, or 6, enter $26,000.
• If filing status 2, enter $35,000.
• If filing status 3 or 4, enter $17,500 ........................................................................ 23. __________
24. Enter the applicable amount below based on your Iowa filing status:
• If filing status 1, 5, or 6, enter $112,500.
• If filing status 2, enter $150,000.
• If filing status 3 or 4, enter $75,000 ........................................................................ 24. __________
25. Subtract line 24 from line 22. If zero or less, enter zero .............................................. 25. __________
26. Multiply line 25 by 25% (.25) ....................................................................................... 26. __________
27. Subtract line 26 from line 23. If zero or less, enter zero .............................................. 27. __________
28. Subtract line 27 from line 22. If zero or less, enter zero .............................................. 28. __________
29. Tentative Iowa Alternative Minimum Tax. Multiply line 28 by 6.4% (.064) .................. 29. __________
30. Regular tax less exemption credits. IA 1040, line 39, less IA 1040, line 43 ................ 30. __________
31. Iowa Alternative Minimum Tax. Subtract line 30 from 29; enter here and on IA
1040, line 41. If zero or less, enter zero. See instructions for Iowa Alternative
Minimum Tax Limited to Net Worth ......................................................................... 31. __________
PART IV - Nonresidents and Part-Year Residents Only – Complete Lines 32-35.
32. Enter Iowa net income plus Iowa adjustments and preferences. If zero or less,
enter zero. See instructions. ................................................................................... 32. __________
33. Total net income plus total adjustments and preferences. See instructions ................ 33. __________
34. Divide line 32 by line 33 and enter the result to three decimal places. If greater than
one, enter 1.000. ..................................................................................................... 34. __________
35. Iowa Alternative Minimum Tax. Multiply line 31 by 34. Enter here and on
IA 1040, line 41. See instructions............................................................................ 35. __________

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2022 IA 6251 Iowa Alternative Minimum Tax – Individuals Instructions, page 1
Who Must File IA 6251?
Estates and trusts must use form IA 1041
Schedule I to calculate alternative minimum tax.
An individual should not complete form IA 6251 if:
• Your filing status is single and your net income
(IA 1040, line 26) is $9,000 or less ($24,000 or
less if 65 or older on 12/31/22); or
• Your filing status is other than single and your
net income (IA 1040, line 26) is $13,500 or less
($32,000 or less if you or your spouse was 65
or older on 12/31/22).
All other individuals who had one or more of the
adjustments or preferences in Part I must complete
form IA 6251 to see if they owe Iowa Alternative
Minimum Tax (AMT). Taxpayers may have an Iowa
AMT liability even if they do not owe federal AMT.
Nonresidents who have a liability for Iowa AMT are
required to file an Iowa return even if they have no
regular Iowa income tax liability.
Married filing separate filers: Each spouse needs
to complete a separate IA 6251.
Note: The Iowa AMT Credit is available which may
reduce the regular tax of an individual for Iowa AMT
paid in a prior year. See instructions for IA 8801.
Part I - Iowa Adjustments and Preferences
Part I of the IA 6251 corresponds to Part I of federal
form 6251 except as noted. Itemized deductions
will be apportioned based on net income and asset
adjustments will be based on ownership.
Line 1: Report the amount of taxes reported on IA
1040 Schedule A, line 8.
Married Separate Filers:
Filing status 3 and 4 filers: The IA alternative
minimum tax calculation must be figured based on
each individual’s portion of adjustments or
preference from part I. Divide the amount of taxes
reported on IA 1040 Schedule A, line 8 between
spouses in the ratio of their respective net incomes
as calculated on the IA 1040 Schedule A, lines 2226.
Line 2: Refunds of Taxes:
Report any state refunds reported on the IA 1040,
line 14, code k. Also include any refunds received
in 2022 and included on line 14 that are attributable
to state or local personal property taxes or general

sales taxes, foreign income taxes, or state, local,
or foreign real property taxes. Enter the total as a
negative amount.
Lines 3 through 16: See the corresponding lines
on federal Form 6251 for additional guidance. If
the regular income amounts on the IA 1040 differ
from the corresponding amounts on the federal
form 1040 use the amounts from the IA 1040 to
calculate Iowa AMT amounts by following the
federal instructions for making adjustments,
unless otherwise specified in these instructions.
Line 8: If the amount of your Iowa depreciation
deduction for this year was different from the
amount of your federal depreciation deduction,
you may need to recalculate the amounts shown
on the federal form 6251 to adjust for the Iowa
amount. Recalculate this amount by using the
Iowa depreciation deduction amounts shown on
this year’s IA 4562A, and follow the federal AMT
adjustment instructions for the federal form 6251,
line 2(l).
Line 16: If the amount of your Iowa depreciation
deduction or any other Iowa nonconformity
adjustment for this year was different from the
amount shown on your federal return, you may
need to recalculate the amounts shown on the
federal form 6251 to adjust for the Iowa amount.
Recalculate this amount by using the Iowa
depreciation deduction amounts shown on this
year’s IA 4562A, or other nonconformity
adjustments shown on IA 1040 line 14, and follow
the federal AMT adjustment instructions for
federal form 6251, line 3.
If you filed federal Schedule A to claim an
increased standard deduction due to a loss you
suffered related to property in a federally declared
disaster area do not report the amount of your
standard deduction reported on federal form
6251, line 3.
Note: The federal tax preferences for percentage
depletion of an oil, gas, or geothermal well and
intangible drilling costs from federal form 6251 are
not tax preferences but are additions to income on
IA 1040, line 14.
Part II – Iowa Alternative Minimum Taxable
Income
Line 21: A net operating loss (NOL) can be
carried back or carried forward to reduce a
taxpayer’s alternative minimum taxable income.
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2022 IA 6251 Iowa Alternative Minimum Tax – Individuals Instructions, page 2
However, before the NOL can be deducted, it
must be reduced by any adjustments and tax
preferences used in computing the NOL. A NOL
that is carried to the current tax year on line 21
cannot exceed 90% of the amount on line 20. Any
portion of the NOL that cannot be used can be
carried over to the next tax year. For guidance
regarding the application of a NOL carryback or
carryforward, see the IA 123 NOL schedule
instructions.
Part IV - Nonresidents and Part-Year Residents
Nonresidents and part-year residents of Iowa are
required to pay Iowa AMT only on the percentage
of adjustments and tax preferences that are Iowa
source. Part IV must be completed to calculate the
Iowa AMT liability for nonresidents and part-year
residents only if one has Iowa source adjustments
or preferences.
Line 32: Add Iowa net income from IA 126, line 26,
plus the total of only those adjustments and tax
preferences from IA 6251, line 17 that are from Iowa
sources.

Line 33: Add all-source net income from IA 126,
line 27, plus the total of all adjustments and tax
preferences from IA 6251, line 17.
Line 35: Multiply line 31 by line 34. The result is
the Iowa AMT and is to be entered on IA 1040,
line 41. See the instructions below relating to Iowa
AMT limited to net worth.
Iowa Alternative Minimum Tax Limited to Net
Worth
Taxpayers who meet all qualifications for a
distressed sale, but have a debt to asset ratio of
75% or less, are not subject to the AMT in an
amount greater than the taxpayer’s net worth. In
situations where a taxpayer has multiple
transactions (forfeitures, transfers, sales, or
exchanges), AMT is limited to net worth prior to the
last transaction in the tax year. Please complete the
IA 6251B form to determine net worth.

41-131d (06/18/2021)