The rules for Iowa state income tax say that any individual who earns less than $1,000 in net income is considered a nonresident or part-year resident depending on whether or not they established a permanent domicile in the state and for how long. Married taxpayers should use their combined income to determine whether they need to file a return in the state of Iowa.

Part-year or nonresidents may be subject to lump sum or minimum tax. When filing taxes, part-year residents of Iowa are required to include all income earned while they lived in the state. It doesn’t matter where the income was earned. Additionally, only income earned from Iowa sources above the $1,000 threshold needs to be reported for periods of non-residency.

Nonresidents are only required to report income earned in Iowa. If an employer does not list wages earned between states separately, you should calculate the number of days worked in Iowa in comparison to the total days worked in the year, and use that to determine the amount of Iowa sourced income.