On April 22, the Indiana General Assembly did not adopt certain provisions of the current Internal Revenue Code and Governor Eric Holcomb signed this into law on April 29. As a result, Indiana taxpayers cannot use the federal unemployment compensation exclusion on their 2020 Indiana individual income tax returns and that income must be added back in. They may, however, still be able to deduct some portion of their unemployment income on their state tax return in accordance with Indiana’s current tax laws. See DOR’s “Unemployment Benefits and Taxes” page for more information and instructions.
Have questions about filing your individual income taxes?
Check out DOR’s 2021 Tax Season FAQs for help
- General Income Tax Questions
- Power of Attorney
- Form IT-40 PNR
- Use Tax Liability
- Form 1099G:
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.
- Where do I send my completed tax returns?
If you are including payment:
Indiana Department of Revenue
P.O. Box 7224
Indianapolis, IN 46207-7224
If you are requesting a refund:
Indiana Department of Revenue
P.O. Box 40
Indianapolis, IN 46206-0040
Please enclose only those schedules that have an entry. Do not enclose a copy of the federal tax return with the Indiana tax return. Place Form IT-40PNR on top. Follow the enclosure sequence on the upper right corner of each form for schedules. Place copies of all W-2s and any 1042-S an d1099s or other documents that contain Indiana state/county withholding on top.
Include your SSN and tax year on their check or money order.
Tax returns containing more than four pages usually require additional postage. Returns must be postmarked by the U.S. Postal Service no later than April 15.
Returns are accepted in-person during office hours at any DOR district office or the Customer Service Center located at Indiana Government Center North. See dor.in.gov/contact-us/district-office-contact-info for locations and hours.
- Who must file a tax return?
You must file an Indiana individual income tax return if:
- You lived in Indiana and had an income higher than your exemptions, or
- You lived outside Indiana and received income from Indiana.
- Which tax return should I file?
Indiana has several different individual income tax returns.
- Use Form IT-40 for full-year residents
Use Form IT-40 if you (and your spouse, if filing jointly) were full-year Indiana residents.
- Use Form IT-40PNR for part- 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.
- Use Form IT-40 for full-year residents
- I need more time to file my taxes. What should I do?
- 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.
Tax Years 2021 and prior Tax Years 2022 and forward
If you have already filed an original return, file an amended return by checking "amended" on the IT-40. For more information, visit https://www.in.gov/dor/individual-income-taxes/file-an-amended-return/
- 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 INTIME. 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) 232-2240.
- 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.
- Can a college student claim the renter’s deduction?
College students may claim the renter’s deduction only if the residence is:
- Their principal place of residence; (the place where you have your true, fixed, permanent home and where you intend to return after being absent.)
- The residence is subject to Indiana property tax.
Information Bulletin 38 contains more information.
- Can parents of a college student claim the renter’s deduction on their tax return?
No, this deduction is only available to the person who is living in the rented residence.
- Can I take the renter’s deduction and also the homeowner’s property tax deduction?
These deductions are based on paying rent or property tax on your principal residence. If you paid Indiana property tax on your home and also paid rent on your home (maybe you sold your house in May and rented the remainder of the year), you can take both deductions. The property tax deduction is up to $2,500 and the rental deduction is up to $3,000.
- How do I get information about my tax bill?
The easiest way to inquire about a tax bill is by signing up for DOR's new online e-services portal - the Indiana Taxpayer Information Management Engine, INTIME - which enables Hoosiers to manage their taxes in one convenient location, 24/7.
To sign up for INTIME, you will need to have:
Your tax identification number or Social Security number
The liability number or warrant number and one of the following:
- a recent payment amount,
- a recent return line item, or
- a letter ID
If you do not have these items, you can request a letter to be mailed to you to complete the registration. For more information, visit www.in.gov/dor/online-services/intime-tax-center/
- 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.
Power of Attorney
- What is a Power of Attorney (POA-1) form?
Power of Attorney (POA) allows a third party to represent you regarding tax matters with the Department of Revenue (DOR). In order for DOR to disclose information about your tax account, a representative must first complete the POA process.
- Where do I get the Power of Attorney (POA-1) form?
- Where do I mail the completed POA-1 form?
Customers or their POA representatives can mail the POA-1 form to the following address:
Indiana Department of Revenue
P.O. Box 7230
Indianapolis, IN 46207-7230
- Can I fax the Department a copy of the POA-1 form?
Customers or their POA representatives can fax the POA-1 form to the following number: (317) 615-2605.
- Can my certified public accountant (CPA) submit the POA-1 form for me?
Yes, CPAs can submit the POA-1 form for their clients as long as the document is signed by the customer.
- Do I need to have the POA-1 form notarized if a family member is my POA?
Regardless of whom customers designate as their POAs, the POA-1 form does not need to be notarized.
- Can the DOR speak to my family members without a POA-1 form on file?
No, a POA must be on file. DOR will speak to a family member only if he or she has been declared a POA representative. However, if a married couple filed a joint return, DOR can speak to either spouse without a POA.
- My family member is on active duty in the military. How can he or she complete the form?
- Can anyone be my POA, or does it have to be an attorney or a CPA?
Customers can designate anyone, including family members, CPAs or attorneys, to be their POA representative.
- If I submit my POA-1 form to my local district office, will my POA representative be able to speak with an employee at any Indiana Department of Revenue office?
Yes, the POA representative may speak with any DOR team member after the POA-1 form has been processed by DOR. However, depending on how the form was received, there may be a delay before the POA-1 is visible statewide.
- I’ve entered my representative’s company name on the POA-1 form. Can the DOR talk with anyone who works at that firm?
By law, DOR can accept only an individual’s name as a POA representative. DOR will not accept a POA-1 form that does not have a designated POA representative from the company/firm.
- Can I give blanket permission for my POA representative to receive information for all my tax types and years?
When completing an INTIME POA, you will have the opportunity to choose which tax types and filing periods your representative will gain access to.
For paper POA-1 forms, check the box on page 2 to indicate that you want to grant authority for all periods and tax types.
- How much will it cost me to file the POA-1 form?
There is no cost to the taxpayer or POA representative to complete an INTIME POA or file a POA-1 form.
- Do I need to complete a POA-1 if I am listed as the personal representative on the individual tax return?
If you are listed as an authorized personal representative on the tax return, a POA is not required to discuss that specific return with you. However, if you have additional questions outside of the tax return itself, other tax years, or other submitted forms, a POA will be required.
- When does my POA expire?
Your POA will expire five years from the date it became effective.
Form IT-40 PNR
- I am an Indiana resident in the military. My spouse is not an Indiana resident. We filed a joint federal return. How do we file with Indiana?
You will need to file using Form IT-40PNR. Indiana will tax all of your income, plus any income your spouse may have received from Indiana sources.
- I worked in Indiana for six months. Then I worked six months in another state. How should I file my Indiana taxes?
Since this question has a variety of different scenarios, it would be best to refer to page 6 of the Form IT-40PNR tax booklet. Then you would need to see what the guidelines are for the other state(s).
- Do I have to figure county tax?
If you lived or worked in Indiana on Jan. 1, you will need to figure county tax.
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
- What is a 1099G statement?
Form 1099G is a report of income you received from the DOR during 2020. The Internal Revenue Service (IRS) requires government agencies to report certain payments made during the year, because these payments are considered taxable income for the recipients. DOR must report any refund, credit or offset of state and/or county income tax made during 2020 to individuals who claimed itemized deductions on their federal income tax returns for the year in Box 3. We must also include any interest paid on those refunds, credits or offsets.
- What should I do with this statement? Do I need to report the amount shown?
Form 1099G is a report of income you received from DOR during 2020. It is not a bill, and you should not send any type of payment in response to the statement. If a professional preparer handles your taxes, you should give this statement to the preparer, along with your other tax information, such as W-2s. If you prepare your own taxes, you should review the federal return instructions for reporting state tax refunds, or visit the IRS website for more information.
- Why did I receive this statement?
DOR's records show that we issued you a refund or overpayment credit during 2020 for the taxable year shown in Box 3. You may be required to report the refund or credit as income on your 2020 federal income tax return.
- Do I have to report my refund as income?
You may have to report a state refund received in 2020 as income if you claimed itemized deductions on your 2019 federal income tax return. If you prepare your own taxes, you should review the federal return instructions for reporting state tax refunds, or visit the IRS website for more information.
Example: Sally Smith's 2019 W-2 showed $1,000 Indiana state withholding and $200 Indiana county withholding. She deducted the total $1,200 state and county withholding as an itemized deduction on her 2019 federal tax return. When she filed her 2019 Indiana state tax return, she got a $300 refund, which was issued June 1, 2020. This means that she only paid $900 in state and county taxes altogether for 2019, rather than the $1,200 she claimed. Therefore, Sally will be required to report the $300 difference on her 2020 federal tax return. (Note: Sally will also claim the $300 as a deduction on her Indiana tax return on Schedule 2, line 3. See the IT-40 instruction booklet for more information.)
- This statement shows a refund amount that includes interest. What am I supposed to report as income?
You may need to report both amounts as income. If so, the interest would be included with the other interest income you report on your federal return. For information on federal reporting requirements, visit the IRS website.
- I have checked my records and I'm sure this statement is incorrect. What should I do?
Please contact us at (317) 232-2240, or write to us at P.O. Box 7207, Indianapolis, IN, 46206-7207, to request a letter of correction. Be sure to include your Social Security number, and explain why you believe the Form 1099G is incorrect.
- I itemized my deductions last year, but haven't yet received a Form 1099G. Is it too late to get one?
We usually mail out the Form 1099G statements around Jan. 1. If it's after the end of January and you still haven't gotten your statement, contact us at (317) 232-2240, or write to us at P.O. Box 7207, Indianapolis, IN, 46206-7207, to request this information. Be sure to include your Social Security number with your request.
- The Social Security number on my Form 1099G is wrong. Would you send a corrected statement to me?
Yes. Please contact us at (317) 232-2240, or write to us at P.O. Box 7207, Indianapolis, IN, 46206-7207. Give us both the incorrect Social Security number from the statement and your correct number. We'll issue a corrected statement to you.
- I claimed a refund from Indiana for 2018, but DOR applied the money to a tax bill I owed for another year. Does this mean the statement is wrong? Do I still have to report this as income?
Indiana law requires refunds to be applied to outstanding billings or to other agency offsets. The application of funds doesn't change the fact that you claimed an overpayment for the year on your tax return. Even though you didn't actually receive a check, an overpayment transaction took place, and you are subject to the same federal reporting requirements as if you had received a refund check.
- I did show an overpayment on my 2019 state tax return, but I had the money applied as a credit (estimated tax payment) to my 2020 account. Since I didn't get a refund, do I still have to report this?
A refund and a credit are simply different types of overpayment transactions. We must include any overpayment allowed on your 2019 tax return, whether issued as a refund or as a credit, on our Form 1099G. As a result, you are subject to the same federal reporting requirements as if you had received a refund check.
- This statement says the refund was issued for 2018, but I already reported that refund on my 2019 federal tax return. Can you correct the statement? If not, what should I do?
You filed your 2018 Indiana return in 2020. DOR is required to report refund transactions in the year they actually occur. Since your 2018 refund was issued in 2020, DOR cannot issue a Form 1099G as if the transaction took place in 2019. You should contact the Internal Revenue Service, or visit their website, to find out whether you should amend your 2019 federal return, or take some other action to correct the reporting error.
- This statement shows a refund of $800 for 2019. I did get a refund for that amount, but I amended my state return a few months later, and had to pay $500 back. Shouldn't the statement say my net refund was $300?
Under federal law, DOR is required to report the actual refund or credit amount. DOR cannot net the amount against other transactions. Therefore, your Form 1099G is correct as issued. For information on how to report the income and deduct your payment on your 2020 federal return, visit the IRS website.
- This statement says the refund was issued for 2017. Why should I have to report that now? Why was a 2017 refund issued in 2020?
DOR's records apparently show that a refund for 2017 was issued on your account during 2020, and that you claimed itemized deductions for 2017. Since the transaction took place in 2020, the income would be reported on your 2020 federal return. If you don't have a record of filing an amended Indiana tax return for 2017, or of resolving a claim or dispute related to your 2017 return during 2020, you may contact DOR for an explanation at: Indianapolis main office, (317) 232-2240; write to DOR at P.O. Box 7207, Indianapolis, IN, 46206-7207; or call or visit one of our District Offices located throughout the state.
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.
- 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:
- Filed a separate federal income tax return, file a separate Indiana return on Form IT-40;
- Filed a joint federal income tax return, and your spouse is also a full-year Indiana resident, file Form IT-40; or
- 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.