Intro 8: Reportable Social Security Benefits

Topics:

Expanded Instructions
  • Step: 4
  • Step Subject: Reportable Social Security Benefits
  • Instruction Year: 2023

Iowa does not tax Social Security benefits. While Social Security benefits are excluded from income when computing tax, some Social Security benefits are included as income in determining whether a taxpayer qualifies for the health insurance deduction.

SOCIAL SECURITY WORKSHEET

Social Security Worksheet
1. Enter the amount from Box 5 of form(s) SSA-1099. If you filed a joint federal return, enter the totals for both spouses. Do not include Railroad Retirement benefits from form RRB-1099 here.1. 
2. Enter one-half of line 1 amount2. 
3. Add amounts from the federal form 1040 on lines 1z, 2b, 3b, 4b, 5b, 7 and 83. 
4. Add one-half of Railroad Retirement Net Social Security Equivalent benefits from Box 5 of RRB-1099*4. 
5. Add any depreciation and section 179 adjustment from IA 1040 Schedule 1, line 9 and all other Iowa nonconformity adjustments to compute correct amount5. 
6. Enter the amount from your federal 1040, line 2a6. 
7. Add lines 2 through 67. 
8. Enter total adjustments from federal form 1040, Schedule 1, lines 11 through 20, line 23, plus the total other adjustments reported on line 258. 
9. Subtract line 8 from line 79. 

10. Enter one of the following amounts based on the federal filing status used on form 1040

  • Single, head of household, qualifying surviving spouse: enter $25,000
  • Married filing joint: enter $32,000
  • Married filing separately: enter -0- if you lived with your spouse at any time in 2023 or $25,000 if you did not live with your spouse at any time in 2023
10. 
11. Subtract line 10 from line 9.
      If zero or less, enter -0-. If line 11 is zero, stop here. None of the Social Security benefits are reportable.
      If line 11 is more than zero, go to line 12.		11. 
12. Enter one-half of line 1112. 
13. Iowa Reportable Social Security benefits: Enter the smaller of line 2 or line 1213. 

* Notes:

Depreciation / Section 179 / and All Other Iowa Taxable Income Nonconformity with Federal Tax Rules

Iowa taxpayers who received Social Security benefits in 2023 and claimed depreciation / section 179 on their federal returns or have other Iowa taxable income nonconformity may have to recompute their reportable benefits on the worksheet. For other Iowa nonconformity adjustments see Schedule 1.

Those who need to recompute the reportable Social Security benefits should add the adjustment from line 5 of Schedule IA 4562A and all other Iowa taxable income nonconformity to the other amounts shown on line 5 of the Social Security Worksheet from the federal return and the RRB-1099. The rest of the form is then completed with the amounts normally used to complete the worksheet from the federal 1040.

Include the following incomes or adjustments to income on line 5 if applicable.
(These were excluded from federal AGI.:

  • foreign-earned income
  • income excluded by residents of Puerto Rico or American Samoa
  • proceeds from Savings Bonds used for higher education and
  • employer-provided adoption benefits.

Railroad Retirement Benefits

Although Railroad Retirement benefits are not taxable, one-half of the Net Social Security Equivalent Benefits from Box 5 of the RRB-1099 received must be used to determine the amount of Social Security benefits that are reportable to Iowa.

Interest from Federal Securities

For purposes of determining reportable Social Security benefits, you must also include interest from federal securities.