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DOR > About DOR > Resources > Tax Talk Blog > Happy New Year! It’s 2010! Happy New Year! It’s 2010!

January 25, 2010

So, how do you plan on referring to the year 2010? Two-thousand and ten? Twenty-ten? While I don’t know if there is a preferred way to refer to it, I do know there is something coming up soon in 2010, no matter how you pronounce it: individuals will begin filing their federal and state income tax returns.

Now I’m not saying you need to start thinking about filing your taxes when they aren’t even due until April 15, 2010. But, if you’re a planner, we thought you’d appreciate a preview.

Here are some of the changes to look for:

Redesign of tax forms and schedules
The 2009 tax forms and schedules look different. While the new layout offers more room to write in your information, a number of extra schedules will help you to identify all the add-backs, deductions, exemptions, credits, etc. Electronic filers may not notice the extra schedules because they are automatically completed for you. That said, those choosing to file paper returns will – each schedule on which you make an entry MUST be enclosed with your filing.

Electronic filing
Speaking of electronic filing, more than two-thirds of Indiana’s three million tax filers do so electronically. Less wait-time for refunds, reduced errors, plus knowing all the new tax changes – no wonder Hoosiers chose to let tax software do the heavy lifting. Whether using a paid preparer, buying tax software and trying it yourself, using the IRS’s Free-File program, and/or using Indiana’s I-File (free Indiana
online tax filing), try electronic filing. Once you do you’ll never go back.

Earned income credit increase
The amount of Indiana’s earned income credit has increased from 6 percent to 9 percent.

Unemployment compensation

  • The way to report unemployment compensation has changed.
  • Also, the way to figure an unemployment compensation deduction has changed.

Make sure to review the unemployment compensation information for both the add-back and the deduction when it comes time to file. Again, using tax-preparation software (and electronically filing) will help you tackle these changes, and to ensure accurate reporting.

New nonresident military spouse earned income deduction
This is so new there isn’t any information about it in the income tax booklet! The Military Spouse Residency Relief Act of 2009 (signed into law in November of 2009) affects some spouses of military servicemembers. Basically, the spouse’s earned income may be exempt from tax in the non-domiciliary state if:

  • a spouse and a servicemember are residents of the same state,
  • the spouse is living with the servicemember, and
  • the servicemember is stationed in a state other than his or her state of domicile.


Whew! If you are filing Form IT-40PNR and want more information about this deduction, get Information Bulletin #27 and the new Schedule IN-2058SP.

You can get the low-down on all the individual tax updates and forms at www.in.gov/dor/4167.htm Be sure to check out page 3 of the IT-40 Booklet for a list of all the changes for 2009. And Happy New Year to you and yours.

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

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