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Tax Information for Seniors and Low-Income Taxpayers

Filing Requirements

A taxpayer that is an Indiana resident (taxpayer maintained a legal residence in Indiana for the entire year) and the total value of personal, elderly, and blind exemptions exceeds the taxpayer's federal gross income before deductions, does not need to file an annual income tax return. More information on if you need to file can be found on our Who Must File a Tax Return webpage.

Assistance for Seniors and Low-Income Taxpayers

If you are a senior or low-income customer looking for assistance in preparing your individual income taxes, there are organizations that can help.

  • The AARP Foundation Tax-Aide program focuses on helping low- and moderate-income people, with special attention to those over age 50.
  • The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs offer free tax help for taxpayers who qualify. 
  • The Notre Dame Tax Clinic is a federally funded Low Income Taxpayer Clinic (LITC) that represents clients in controversies with the Internal Revenue Service (IRS) and educates individuals about their rights and responsibilities as taxpayers.
  • The John Boner Neighborhood Centers is part of Indy Free Tax Prep, Central Indiana’s Network for Free Tax Preparation. As part of the IRS’ Volunteer Income Tax Assistance (VITA) program, they offer free tax preparation and other services to eligible residents.
  • Indy Free Tax Prep is a network of Volunteer Income Tax Assistance (VITA) sites through the United Way of Central Indiana offering free tax preparation to individuals and families with a combined household income of $66,000 or less. If taxpayers are looking for services, dial 2-1-1 to find a nearby VITA location and schedule an appointment. If you have questions or want to volunteer, you can email taxprepindy@uwci.org.
  • The Indiana Legal Services Low Income Taxpayer Clinic serves the community by providing free legal assistance to Indiana taxpayers involved in disputes with the IRS. 

Tax Credits

Tax Deductions

Exemptions

Indiana allows:

  • A $1,000 exemption for both you and your spouse (if married filing jointly), and for each dependent you are qualified to claim;
  • A $1,500 exemption for certain dependent children;
  • A $1,000 exemption for you and/or your spouse if you are age 65 or over;
  • A $1,000 exemption foryou and/or your spouse if you are blind; and
  • A $500 additional exemption for each individual age 65 or older if their federal adjusted gross income is less than $40,000

Simplified Form for Low Income Seniors

Indiana has a Unified Tax Credit for the Elderly. If you meet the eligibility requirements, you can claim this credit on your Form IT-40 or Form IT-40PNR income tax return.

However, if you aren't required to file an income tax return because your exemptions are more than your federal adjusted gross income, there is a Form SC-40 you can file to claim a refund of your Unified Tax Credit for the Elderly.

Here's how to figure your exemptions:

  • Allow $1,000 for each exemption claimed on your federal tax return;
  • Take an additional $1,500 for certain dependent children (see IT-40 instruction booklet for details);
  • $1,000 for each individual age 65 or older;
  • $1,000 for each legally blind individual, and
  • An additional $500 for each individual age 65 or older who has a federal adjusted gross income of less than $40,000.

Example: Chuck and Alice are both 80 years old, and their federal adjusted gross income is $4,300. Their exemption total is $5,000, which includes:

  • $2,000 for each exemption claimed on their federal income tax return (2 x $1,000), plus
  • $2,000 since both are over age 65 (2 x $1,000), plus
  • $1,000, since their federal adjusted gross income is less than $40,000 (2 x $500).

Since their $5,000 Indiana exemption total is more than their $4,300 federal adjusted gross income, they aren't required to file an Indiana income tax return (Form IT-40). They should file the simplified Form SC-40 to claim a refund of their Unified Tax Credit for the Elderly.

 

Additional Information

 

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