Indiana DeductionsLine 1 - Renter's Deduction
You may be able to take the renter's deduction if:
a) you paid rent on your principal place of residence, and
b) the place you rented was subject to Indiana property tax.
Your "principal place of residence" is the place where you have your true, fixed, permanent home and where you intend to return after being absent.
· If you rented a manufactured home or paid rent for your manufactured home lot, you may claim the renter's deduction if the above requirements are met.
· Rent paid for summer homes or vacation homes is not deductible.
You cannot claim the renter's deduction if the rental property was exempt from Indiana property tax. Examples of this type of property are:
a) government owned housing, including Section 8 housing;
b) property owned by a nonprofit organization;
c) student housing;
d) property owned by a cooperative association; and
e) property located outside of Indiana.
How do I report my deduction? First, complete the information area by entering:
If you moved during the year or had more than one landlord, you must list the same information for each place that you rented. Attach additional pages if necessary.
- the address where rented if it's different from the address on the front of the return (write SAME if it is not different);
- the landlords name and address,
- the amount of rent paid; and
- the number of months you lived there.
How much rent can I take off? You can deduct up to $2,500 or the amount of rent paid, whichever is less.
Example: Emily paid $4,800 in rent on her principal residence. She will claim a $2,500 renters' deductions.
Example: Bill paid $400 in rent at his first apartment, moved to another location, and paid $2,300 for the remainder of the year. His deduction will be limited to $2,500 even though he paid $2,700 altogether.
Important: You must maintain copies of your rental receipts, landlord identifying information, and lease agreements as the Department can require you to provide this information.
For more information about this deduction, contact the Department to get Income Tax Information Bulletin #38.