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 each exemption claimed on your federal tax return;
- Plus an additional $1,500 for certain dependent children
If you did not have to file a federal income tax return, you should complete a "sample" federal income tax return to see how many exemptions you are eligible to claim.
Second, 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.
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-40 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.