n. Net Premium Tax Credit

The Net Premium Tax Credit from the 2024 federal 1040, Schedule 3, line 9 will be reported as Other Income on this line to the extent the insurance contributions were deducted on the Iowa return in a prior tax year. If the deduction is taken on the IA 1040 Schedule A (for tax years prior to 2023), then the federal tax guidance should be followed when addressing the complications due to the impact of the Federal Excess Advance Premium Tax Credit repayment and the Net Premium Tax Credit.

However, if the deduction is taken on IA 1040, line 18 (for tax years prior to 2023), then the IA 1040, Schedule 1, Line 11, must reflect the impact of the Federal Excess Advance Premium Tax Credit repayment and the Net Premium Tax Credit. The Iowa expanded instructions for this line and IA 1040, Schedule 1, line 15 set forth the Department’s guidance for the correct reporting of these amounts.

This modification can only be claimed on Column A.