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Iowa online Form 8805: What You Should Know
Do I need an I.R.S. Form 8809? Iowa's form 8809 is considered the standard form. It's the form to use if you need to file an individual income tax return. However, if you're filing Form 8755, Form 8106, or Form 4059 and your filing situations do not fit in with the above two categories, you should use Form 8805. However, if you are filing a joint return only, the I.R.S. requires you use Form 8809. Is It All-Income or Just Net (Before Excess Withholding) for Me? The only income that must be reported on Form 8805 is wages and salaries. Excess Withholding (NEW) is the amount of the foreign income tax you pay over and above what's already been reported to the IRS and is paid by the foreign partner. Excess withholding is treated like gross wages and salaries. Your partner's gross wages, salaries, interest and dividends reported on Form W-2 will be reported to the U.S. government and reported to the foreign partner. For more information, see U.S. Department of the Treasury Tax Forms & Publication 6186. Iowa Income Tax Withholding Tables If you are a resident of Iowa, you will have to pay NEW to this foreign partner if any of the following applies to a given foreign account: You pay more than 200 in non-resident taxes while using a foreign non-resident account in Iowa For the last taxable year, your Iowa non-resident individual retirement account (IRA) holds more than 10,000 in total investment earnings This IRA is used exclusively for IRA-related brokerage fees You meet one of the following criteria: You are a nonresident alien with a net income from business of 200,000 or less You are married to a U.S. citizen You have a foreign business account of 500,000 or fewer You are a resident of Iowa for the last two taxable years You pay the same tax rate on net income from your Iowa non-resident business account that is paid on your Iowa resident business account you use in your own name. This includes income from IRA-related investment fees. I know it can seem complicated, but it's worth the effort. For a complete Iowa personal income tax withholding table, click here, or for an Excel spreadsheet of all the Iowa withholding rules, click here.
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