Tax Talk Blog
Tax Help for Homeschoolers
August 16, 2017
August is back to school time for Hoosier students across the state. Although homeschoolers in Indiana are not required to follow a traditional school calendar, now is a good time to remind homeschool families about the state’s homeschool tax deduction.
Indiana taxpayers with a child or children enrolled in private school or homeschool may qualify for a reduction in taxable income of $1,000 per qualified student.
A tax deduction reduces your taxable income, before calculating state and local tax. Local tax reductions may apply, and will vary by locality.
The deduction is based on education expenditures paid for each dependent child. Eligible expenditures include tuition, fees, textbooks, workbooks, curricula, written materials used primarily for academic instruction, and school supplies (other than personal computers) that are not reimbursed through other methods.
You may be eligible the deduction if:
- you are eligible to claim the child as a dependent on your federal tax return;
- the child is your natural or adopted child or, if not, you must have been awarded custody of the child in a court proceeding making you the court appointed guardian or custodian of the child;
- the child is eligible to receive a free elementary or high school education (K-12 range) in an Indiana school corporation;
- the child is not receiving instruction at home through the public school system;
- the child is not enrolled in a charter school; and o the child was in attendance a minimum of 180 days in the calendar year for which you claim the deduction.
If you qualify for the deduction, you must claim it on Schedule 2 of the IT-40 form when filing an annual state tax return. A qualifying child may be claimed for this deduction only once per year. For example, if a husband and wife are married and filing separately, whichever parent is eligible to claim the child as a dependent for exemption purposes is eligible to claim this deduction. Please refer to the IT-40 Full-Year Resident Individual Income Tax Booklet for additional instructions.
For more information about this deduction, see Income Tax Information Bulletin #107 at www.in.gov/dor/3650.htm.
The Indiana State Fair is in Full-Swing!
August 9, 2017
As summer draws to a close, it means the Indiana State Fair is in full-swing!
The Indiana State Fair has been a staple of the Indiana economy for nearly 165 years.
The Wonderful World of Food, the theme for this year’s Indiana State Fair highlights one of the many reasons that over 800,000 visitors flock to the fairgrounds annually.
Each year we indulge in tasty snacks and sweet treats, but we often forget that these vendors and concessionaires are subject to a variety of fees such as percentages of gross sales, commercial, and/or food and beverage sales tax. With more than 125 food stands at the Indiana State Fair the revenue to the local economy and state quickly adds up in the short amount of time the fair operates.
With all the fun and food, visitors often forget the numbers that are associated with the purchase of a delicious corn dog. Such numbers include:
- Percentage Rates – Food and Beverage Concessionaires will pay fees corresponding to their assigned percentage of the gross sales after taxes.
- Outside Food & Beverage - 20%
- Indoor Food & Beverage - 30%
- Sales Tax – Commercial sales tax for all sales is 7% in the State of Indiana. Food and beverage sales tax is 9% in Marion County.
Anyone doing business in the State of Indiana is required to have an Indiana Retail Merchants Certificate (IRMC) and must supply a copy of this information to the Concessions Office. If you need a license or have any questions, please contact the Indiana State Department of Revenue 317-233-4015.
For more information on the Indiana State Fair, please visit http://www.indianastatefair.com/state-fair/ or download their free app!
We look forward to seeing you at the Indiana State Fair this August 4-20!
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