- Line: 2
- Step: 4
- Step Subject: Taxable Income
- Instruction Year: 2025
Enter your federal taxable income as reported on federal 1040, line 15. If the amount of federal taxable income is zero, subtract the amount reported on IA 1040 lines 1d and 1e, and federal form 1040 line 13b from the amount reported on IA 1040, line 1c and report this amount (this amount can be negative).
If you were not required to file a federal return you must enter on line 2 the amount that would have been reported on federal 1040, line 15, if a return was required to be filed. If the amount of federal taxable income would have been zero, subtract the amount reported on IA 1040 lines 1d and 1e, and federal form 1040 line 13b from the amount reported on IA 1040, line 1c and report this amount (this amount can be negative).
In other words, for either scenario above, if the calculation on federal form 1040 line 15 would have been a negative number if not for the limitation listed on the federal form to enter zero if the amount calculated for line 15 is zero or less, this negative number can be used for Iowa purposes only on IA 1040 Line 2.