Who should file a tax return?
You may need to file an Indiana individual income tax return if:
- You lived in Indiana and received income, or
- You lived outside Indiana and had any income from an Indiana business or individual.
If you were a full-year resident of Indiana and your gross income (the total of all your income before deductions) was more than your total exemptions claimed, then you must file an Indiana tax return. A general rule of thumb is to file Indiana state taxes if your income is $1,000 or more. When it doubt, it is best to file.
To determine if you're required to file, first, figure your Indiana exemptions. Allow $1,000 for:
- Your spouse, if married filing jointly, and
- Any dependents you are eligible to claim (such as a child or elderly parent who lives with you.)
Add all the exemptions you are eligible for, and compare that amount to your taxable income.
Example: Let's say you are eligible for a total of $2,000 in exemptions. If your taxable income is $2,000 or less, then you're not required to file a tax return with Indiana. If your taxable income is more than $2,000, then you must file a tax return with Indiana.
Important: If your income is less than your total exemptions and you have Indiana credits (like state and county withholding on your W-2's, or you're eligible for the Indiana earned income credit), then you'll want to file a tax return to get a refund. However, you're not required to file under these circumstances.
Part-Year Residents and Full-Year Nonresidents
- If you were a part-year resident and received income while you lived in Indiana, you must file your Indiana income taxes.
- If you were a full-year nonresident of Indiana, but received any income from Indiana sources, you must file your Indiana income taxes.
Full-Year Residents of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin
If you were a full-year resident of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and your only income from Indiana was from wages, salaries, tips or commissions, then you need to file Form IT-40RNR.
Check out the IT-40RNR instruction booklet for more information.
Generally, if you were a resident of another state (or country) at any time during the year and had income from Indiana (except certain interest, dividends or pension income), you must file a tax return with Indiana.