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There are many credits available to claim on your Indiana income tax return.
Information Bulletin #59 lists all the credits available to Indiana taxpayers. Also, the IT-40 instruction booklet (IT-40PNR instruction booklet) has more detailed information about the credits available to be claimed on the income tax return.
Below is a list and a brief discussion of the more commonly claimed credits:
In 2012 the Indiana General Assembly passed legislation providing for an Automatic Taxpayer Refund (ATR) credit.
This credit was first available for tax year 2012. It will be available in every odd year in the event there is a required minimum coverage amount remaining in the budget at the end of the fiscal tax year. The next year it may be available is tax year 2017.
If you donated money or property to an Indiana college or university, you may be able to take a credit.
Note: Tuition paid to a college or university is not a contribution, and does not qualify for this credit.
Get Schedule CC-40 for complete details.
Indiana residents must report all income that is reported for federal income tax purposes on their Indiana individual income tax return. This includes income from sources outside Indiana. Likewise, nonresidents who receive income from Indiana generally will owe tax to Indiana on the part of their income that is from or connected with Indiana sources.
When this happens, individuals may be subject to individual income tax by both their state of residence and the state where the income comes from. Indiana has entered into agreements with several states to eliminate the requirement of paying tax to two states on the same income. Tax treatment of out-of-state income depends upon the types of income and the state from which the income is derived.
Note: Indiana only allows credits for individual income tax paid to other states or localities. Other taxes such as property taxes, corporate income taxes, and unincorporated business taxes are not allowed as a basis for claiming such credits.
Indiana withholding amounts may be found on any of the following forms:
Do not claim other state's or non-Indiana locality withholding amounts on your Indiana income tax return. You'll need to contact those states/localities for instructions on how to claim those credits.
You may be eligible for Indiana’s earned income credit if you have claimed an earned income credit on your federal tax return. Get Schedule IN-EIC and review the detailed instructions beginning on page 26 of the IT-40 instruction booklet (page 32 of the IT-40PNR instruction booklet).
You may be able to claim the unified tax credit for the elderly if you or your spouse meet all the following requirements:
The credit ranges from $40 to $140, depending on your age, marital status and income, and must be claimed no later than June 30 following the close of the tax year.
Check out Section VI: Credits Available to the Elderly in Information Bulletin #26 for more information.