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Individual Income Tax FAQs

General Income Tax Questions


  • When is my tax return due?

    April 15th following the end of the tax year.

    If April 15 falls on a weekend or holiday, the due date for filing your tax return is the next business day. (ie: April 17, 2018 for 2017 taxes)

    Fiscal-year tax returns are due by the 15th day of the fourth month after the close of the fiscal year. (ie: Fiscal year end date July 1, returns are due November 15). You must complete the Fiscal Year date at the top of the income tax form you're filing.

  • Who must file a tax return?

    You must file an Indiana individual income tax return if:

  • Which tax return should I file?

    Indiana has several different individual income tax returns.

    • Use Form IT-40 for full-year nonresidents
      Use Form IT-40 if you (and your spouse, if filing jointly) were full-year Indiana residents.
    • Use Form IT-40PNR for part-year and full-year nonresidents​
      Use Form IT-40PNR if you (and your spouse, if filing jointly):
      • Were Indiana residents for less than a full-year or not at all, or
      • Are filing jointly and one was a full-year Indiana resident and the other was not a full-year Indiana resident, and
      • Do not qualify to file Form IT-40RNR.
    • Use Form IT-40RNR for full-year residents of reciprocal states
      Use Form IT-40RNR if you (and your spouse, if filing jointly) were:
      • Full-year residents of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and
      • The only type of income from Indiana was from wage, tip, salary or other compensation.*

    *You are required to file Form IT-40PNR if you have any other kind of Indiana-source income.

  • How do I read a refund check?

    You can learn to read a refund check by checking out our diagram.

  • I need more time to file my taxes. What should I do?

    You should file for a federal and/or state extension of time to file.

    Please note, this form only allows you to file your tax return after the original due date, April 15. Any payment made when you file your tax return is subject to interest, and penalty may be due, too.

  • When do I file an amended (corrected) return?

    When there are changes to your income, exemptions or credits. This may result in a refund or tax due.

    • If you did not file an original return but you filed an amended federal return (1040X) then you will need to file the new figures as an original return on IT-40, or IT-40 PNR.
    • If you have already filed an original return, file an amended return using Form IT-40X.
  • I have a gambling loss that I took on my federal return. Can I claim this on my state return?

    No. Indiana does not have a deduction for gambling losses.

  • Does the DOR have a payment plan option?

    If the amount of tax due is more than $100, the DOR can establish a payment plan. The request can be made once your return is processed and you received a bill for the tax due.

    The DOR now offers INtax Pay. This online program allows eligible Hoosiers to pay and set up payments.

    This tool is available to customers who owes individual income taxes, and businesses who conduct retail sales.

    For more information, please contact us at (317) 232-2165.

  • Does Indiana have an inheritance tax?

    Indiana's inheritance tax was repealed for individuals dying after Dec. 31, 2012.

  • What are the filing requirements for deceased individuals?

    There are several requirements to meet if an individual died during the tax year, or died after December 31st of the tax year, but before filing his or his tax return.

    The executor, administrator, or the surviving spouse must file an Indiana income tax return for the individual if:

    • The deceased was under the age of 65 and had gross income more than $1,000;
    • The deceased was age 65 or older and had gross income more than $2,000; or
    • The deceased was a nonresident and had gross income from Indiana.

    The DOR may ask for a copy of the death certificate, so please keep a copy with your records. Make sure to enter the month and day of death for the taxpayer or spouse in the appropriate box located on the back of the appropriate form or schedule. For more information, please visit this page.

  • Why have I not received my worker's compensation exemption certificate?

    To receive the worker's compensation exemption certificate you must meet several requirements.

  • Why is there a tax lien on my vehicle title?

    You are most likely in a state collection for taxes.

  • How long should I wait on my refund before contacting the DOR?

    Please allow a minimum of 3 weeks for electronically filed returns, and 12 weeks for paper filed returns.

Deductions


Billings


  • How do I get information about my tax bill?

    You can inquire about a tax bill by using the DOR's automated information line. You can find out your current balance due on any individual or business tax liability by calling (317) 233-4018.

    You will need to have:

    • Your tax identification number or Social Security number
    • The liability number or warrant number

    This information is located on the bill you received.

  • What are my rights as an Indiana taxpayer?

    All Indiana taxpayers have certain rights and responsibilities that correspond to the Indiana tax laws.

    • Quality Customer service
    • Taxpayer advocate to help customers in the preservation of their rights
    • Taxpayer education and information
    • A fair collection process
    • Appointed hearing time and representation
    • Demand notices
    • Warrants for collection of tax
    • Judgment liens against property
    • Annual Public Hearing and Department Report
  • What are my responsibilities as an Indiana taxpayer?

    Your responsibilities are:

    • To file your tax returns and pay any taxes due on time.
    • To notify us in writing when you have an address change.
    • To know the tax laws that relate to you as an individual or a business, and comply with those laws.
    • To contact us if you have any questions or concerns.
  • What is the DOR’s delinquent tax collection process?

    Every customer has the right to a fair collection process.

    You have the right to protest a liability. If you protest a liability, the DOR is required to conduct a hearing on that case. You are entitled to be represented at your hearing when your case is presented. If a liability is not paid or protested within 60 days of the first notice, we will issue a "Demand Notice" for payment before issuing a tax warrant. If we do not receive a payment, a warrant for the collection of tax will be issued. When a tax warrant is filed with your county clerk, it becomes a judgment lien (levy) against all your property within the county. The DOR intends for you to have every opportunity to rectify your account balance whether it is paying it right away or protesting it.

    Know your rights and responsibilities as an Indiana taxpayer.

Power of Attorney


Form IT-40 PNR


Use Tax Liability


  • Who owes Indiana Use Tax?

    Generally, any type of business entity (individual, partnership, corporation, etc) that makes purchases of tangible personal property are subject to use tax unless you previously paid at least a seven percent sales tax on the purchase to the vendor. Use tax can be thought of as a mirror of the sales tax. Both our sales tax and use tax rates are seven percent.

    Use tax is due on property brought into Indiana for use, storage or consumption, unless the Indiana Code (IC 6-2.5-5) contains an applicable exemption for your purchase. If you paid at least seven percent sales tax at the time of purchase you do not owe a use tax. However, if you did not pay at least a seven percent sales tax you may owe use tax.

  • What type of purchases might cause me to become liable for Use Tax?
    • Catalog purchases by phone or mail from out-of-state vendors
    • Internet purchases from out-of-state vendors
    • Items withdrawn from your inventory for personal use or to give away
    • Any purchase for which a statutory exemption is not available per the Indiana Code (IC 6-2.5-5)
  • What are some common examples of purchases I may make that become subject to the Indiana Use Tax?
    • A dentist operates his/her business as a sole proprietorship. The dentist buys toothbrushes from an out-of-state supply house to give away to their patients during their annual exam. The vendor did not collect any sales tax on this sale. The dentist owes seven percent use tax on these purchases as there is not an existing statutory exemption for this type item given away. The dentist should report the use tax on form ST-115.
    • An auto repair shop purchases shop rags and other cleaning materials from an-out-of-state vendor. The vendor did not collect sales tax on the invoice. The auto repair shop should report these purchases on their next sales tax return, form ST-103, as being subject to use tax and remit the seven percent use tax due.
    • A manufacturer purchases new office furniture for their corporate office use from an out-of-state distributor. The distributor collects their state's six percent sales tax on the selling price. The manufacturer owes an additional 1 percent Indiana use tax on this purchase since the property is being used, stored or consumed within Indiana. The manufacturer should report this use tax liability on their ST-103 sales tax return.
    • A law firm maintains an extensive legal library. Many of their legal books, manuals and publications are from out-of-state publishers who do not collect sales tax on items shipped into Indiana. The law firm owes seven percent Indiana use tax on these type of purchases and can remit these on their ST-103 return, if they are a registered retail merchant, or they can use the form ST-115.
    • An individual orders magazines, clothing and novelty items from various out-of-state catalog companies. Sometimes the individual orders the items via mail, sometimes via the telephone and sometimes online over the Internet. This individual should report these purchases to Indiana as being subject to our use tax of seven percent. The individual can report these purchases on their Individual Income Tax Returns (IT-40) or they may use a Form ST-115.
  • What about items I purchase at garage sales and auctions?

    Items sold at garage sales are generally exempted under Indiana's casual sale statute. A casual sale exemption is applicable when the seller is not in the "business" of selling merchandise and the seller has already paid an original sales or use tax on the item. (Information Bulletin 20)

    Items purchased at auctions are slightly more complex. Naturally, if the auctioneer collects the seven percent sales tax you will not owe any additional use tax. Also, if the auction takes place on the premises of the owner of the tangible personal property the items are considered to be "casual sales," and therefore, exempt from sales and/or use tax. However, if the merchandise to be sold is moved to a location not owned by the owner of the merchandise, the sales become subject to sales and/or use tax. All sales at auction "houses" are subject to the sales or use tax. (Information Bulletin 20)

  • What if I've paid sales tax to another state?

    The Indiana use tax rate is seven percent, same as our sales tax rate.

    Depending on the tax rate of another state you may or may not owe use tax:

    • If paid sales tax of seven percent or more to the other state you do not owe use tax to Indiana
    • If paid sales tax of less than seven percent to the other state, your Indiana use tax will be the difference between the Indiana seven percent use tax and the amount you paid to the other state.

Form 1099G - Issued by the Indiana Department of Revenue


Form 1099G - Issued by the Department of Workforce Development

The Form 1099G issued by the Department of Workforce Development is a report of unemployment compensation issued to you.

For information about this statement, contact the Department of Workforce Development at:

Indiana Department of Workforce Development
Benefit Administration Section
10 N Senate Avenue
Indianapolis, IN 46204-2277

Contact them via their website, or call them toll free at 800-891-6499.

Military


  • Which Indiana income tax form do I file?

    You have special filing considerations if Indiana is your military home of record. Read the following to see which set of circumstances fits you.

    • If you are single, file Form IT-40.
    • If you are married and:
    1. Filed a separate federal income tax return, file a separate Indiana return on Form IT-40;
    2. Filed a joint federal income tax return, and your spouse is also a full-year Indiana resident, file Form IT-40; or
    3. Filed a joint federal income tax return, and your spouse is either a part-year Indiana resident or a full-year Indiana nonresident, file Form IT-40PNR This form will help you to separate the income to be taxed by Indiana.
  • How do I report my spouse's income?

    If your spouse maintains his/her Indiana residency during your enlistment, all of his/her income will be taxed by Indiana, regardless of where you are stationed.

    If your spouse is a part-year or full-year Indiana nonresident, income received during his/her Indiana residency, as well as income from Indiana sources, will be taxed by Indiana.

    More examples can be found on our Information for Military Service members page.

  • Will I owe Indiana county tax?

    Maybe. Indiana military personnel have special county tax filing considerations.

  • Do I qualify for the National Guard and Reserve Component Members Deduction?

    There is a deduction available for certain members of the reserve components of the Army, Navy, Air Force, Coast Guard, Marine Corps or the Merchant Marine, or a member of the Indiana Army National Guard or the Indiana Air National Guard.

    A deduction is available for the income received as a result of service on involuntary orders during the period the above members were deployed and mobilized for full-time service, or during the period the above member's Indiana National Guard unit was federalized.

    If you meet the above-requirements, see instructions in the IT-40 Instruction booklet for details on how to figure your deduction.

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