How is Iowa federal income tax after non-refundable credits for 2022 amount automatically entered into my state preparation?

This amount would populate line 14 of Schedule 1 of Form IA 1040. 

According to the instructions for line 14, the line would be calculated as described below:

If you received a federal tax refund in 2023, you must report the amount on IA 1040 Schedule 1, line 14. It must be reported even if you used the standard deduction on the prior year’s Iowa return. The federal refund must be included on this line because you benefited from being able to deduct federal taxes on the prior year’s Iowa return, which reduced your Iowa taxable income for that year. The amount reported on the IA 1040 Schedule 1, line 14 should not exceed the total amount of any federal tax deduction taken on the prior year(s) Iowa return. The total overpayment is reported on Schedule 1, line 14.

Any portion of the federal refund received due to the fuel tax credit must be reported on the Iowa return.  Include any amount received in 2023 due to excess FICA payments if the amount was claimed as a federal tax payment on the 2022 Iowa return. Report any federal income tax refund received in 2023 for tax year 2022 or any other years that were amended or filed late.

Do not include the portion of the federal refund attributable to the following:

● Do not include federal refundable credits such as earned income tax credit, additional child tax credit, refundable education credit, net premium tax credit, or recovery rebate credit.

● You are filing an Iowa return for 2023 for the first time. A refund of federal tax received in 2023 is not reported if the tax was not deducted from Iowa income in a prior year.

● The refund you received was from a year in which you did not take a deduction for the payment of federal tax because your income was less than the minimum amount for paying Iowa tax or your tax for that year was calculated using the alternate tax computation.

● You were a nonresident for the tax year of the refund and were not required to file an Iowa return for that year.

Married Separate Filers:

If the refund received in 2023 was from a jointly-filed federal return, it must be divided between the spouses in the ratio of the spouses’ Iowa net incomes in the year for which the refund was issued.