Commonly Claimed Deductions and Credits

February 6, 2017

Many taxpayers are eligible to claim credits and deductions when filing their taxes.

Indiana deductions are used to reduce the amount of income Indiana will tax. If you’re eligible for any deductions, you’ll claim them when you file your Indiana income tax return.

A credit reduces tax due dollar-for-dollar and could result in a refund. For a list of all Indiana credits, click here.

Some of the commonly claimed deductions are listed below:

  • Residential Homeowner’s Property Tax Deduction - You may be eligible to take a deduction of up to $2,500 of the Indiana property taxes (residential real estate taxes) paid during the year on your principal place of residence.

Note: Your “principal place of residence” is the place where you have your true, fixed home and where you intend to return after being absent. Property tax paid for summer homes or vacation homes is not deductible.

  • Renter’s Deduction - You may be eligible to take a deduction of up to $3,000 of the rent paid on your Indiana home.

Note: You cannot claim this deduction if the rental property was exempt from Indiana property tax.

  • Social Security Benefits - All social security benefits and/or railroad retirement benefits (issued by the Railroad Retirement Board) included in the income taxed on your federal income tax return should be deducted on your Indiana tax return. For more information about this deduction, view Information Bulletin #26.

For a full list of deductions, be sure to visit www.in.gov/dor/files/ib59.pdf.