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Indiana Department of Revenue

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Education Credits and Deductions

Aug. 18, 2014

It’s that time of year again – back to school! As students prepare their return to classrooms and universities across the state, keep in mind Indiana offers a few education related deductions and credits to maximize your money.

Education Expenses Deduction – You may qualify for a deduction based on education expenditures paid for each dependent child enrolled in a K-12 private school or those homeschooled. Expenditures include tuition, fees, textbooks and even school supplies. If eligible, the deduction is $1,000 per qualified dependent. Read Information Bulletin #107 for the details.

School Scholarship Tax Credit – When you contribute to a qualified scholarship granting organization, the money provides K-12 scholarships for Hoosier children. A contribution can net a 50 percent credit against your state tax liability. There are no limits on the size of a qualifying contribution, but the entire tax credit program has a limit of $7.5 million in credits per state fiscal year. This contribution may also qualify as an itemized deduction on your federal tax return. Visit the department of education’s school scholarship site for more information.

Indiana CollegeChoice 529 Investment Plan Tax Credit – When you contribute to a CollegeChoice 529 education savings plan, you get a 20-percent state credit (up to $1,000) for contributions made this year. You don’t have to be a family member to contribute. Visit the Indiana Education Savings Authority site and read their tax credit FAQ for details.

Tax Credit for College Donations – With this credit, you may get a state credit and a deduction on your federal tax return. Making a contribution to support your Indiana college of choice could net you up to a $100 (if filing singly) or $200 (if married filing jointly) credit when you file your state tax return. Contributions can include cash and other stuff – like a rare book, artwork or land. You’ll get a bigger bang for your buck if you itemize deductions on your federal tax return. Be sure to keep your receipt/letter from the institution. Read Information Bulletin #14 for state credit details and get more information about claiming itemized deductions from the IRS.

To qualify for these credits/deductions when filing your 2014 Indiana individual income tax return (in 2015) make your contributions and/or payments between now and Dec. 31. Or as college students say, before spring semester!

Full Reciprocity Plan Creates Changes in IRP

August 12, 2014

TruckFor many trucking companies, calculating estimated distances on their International Registration Plan (IRP) renewals can be challenging. For others, the challenge is deciding to travel to an additional state midway through an IRP renewal and having to create a new cab card. Beginning Jan. 1, 2015, both of these IRP registration/renewal requirements are eliminated.

The Full Reciprocity Plan (FRP), recently passed by IRP, is designed to make IRP more efficient, equitable, and flexible for registrants and member jurisdictions. It removes all IRP provisions related to estimated distance and allows full reciprocity for all apportioned vehicles in all member IRP jurisdictions.

To execute this change, all new IRP accounts will register for every jurisdiction listed on their cab cards and pay a per-vehicle distance percentage to each jurisdiction. All jurisdictions will remain on the cab card to allow the flexibility to travel into other states when necessary. The next time IRP accounts renew, they will be charged for actual distance accrued in each jurisdiction.

IRP accounts will see this change on January 2015 IRP renewals, depending on their staggered year. All January renewals will be mailed in September as usual.

Those who would like more information and answers to frequently asked questions about these changes can visit the Indiana Department of Revenue Motor Carrier Services website at www.in.gov/dor/5180.htm.


If you would like to submit a question or topic suggestions, please send them to feedback@dor.in.gov
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