Iowa 2010: 2009 Federal Making Work Pay Credit Incorrectly Included as Deduction in 2010 Iowa Return
Certain customers had an incorrect deduction on their 2010 Iowa tax return.
The TurboTax product incorrectly transferred the 2009 federal Making Work Pay credit to certain 2010 Iowa returns as a deduction for “Additional federal tax paid in 2010…” (Iowa Form 1040, line 33 / Form 1040A, line 7b.)
This may result in underpaying Iowa state tax.
TurboTax has fixed this issue on February 12, 2011.
How to tell if you are impacted
You are impacted if:
- You filed your return prior to February 12, 2011 AND,
- Your 2010 federal tax return included a “Making Work Pay Credit” (see Form 1040, line 63; Form 1040A, line 40; Form 1040-EZ, line 8) AND,
- You filed a 2009 Iowa resident tax return with TurboTax AND,
- You transferred your 2009 tax return data to your 2010 tax return
If you meet the criteria, the “Additional federal tax paid in 2010 for 2009 and prior years” deduction (Iowa Form 1040, line 33 or Iowa Form 1040A, line 7b) is incorrect.
You will need to amend your Iowa tax return.
If you need to contact us, use the phone number in the email from TurboTax and tell the representative you’re calling about the Iowa Making Work Pay Credit.
Let us do the work for you. We highly recommend this.
- Please download and print this Authorization Form.
- Complete the form and fax it to us at the number printed at the top of the form.
- A TurboTax representative will contact you (within 6 days) when your corrected return is ready to be securely emailed back to you.
- You can print, sign and mail the corrected return to the Iowa Department of Revenue.
Or you can make the corrections yourself. However, the amend process can be complex.
- To do it yourself, please follow these step-by-step instructions.
- After you make the changes to your tax return, you will need to mail a copy to the Iowa Department of Revenue.
- If you need assistance, call us at the phone number in the email.