Individual Income Tax FAQs

April 15 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. (i.e. Tuesday, April 18, 2023 is the deadline for filing 2022 taxes)

Only enclose schedules that have an entry; do not send blank schedules. Do not enclose a copy of the federal tax return with the Indiana tax return. Place the main page of the return on top, then follow the enclosure sequence on the upper right corner of each form for schedules. Place copies of all Form W-2s and any Form 1042-S and Form1099s or other documents that contain Indiana state/county withholding last.

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 locations and hours

You must file an Indiana individual income tax return if:

• you lived in Indiana and received income or
• you lived outside Indiana and received income from Indiana.

Indiana has several different individual income tax returns.

• Form IT-40 - Use Form IT-40 if you (and your spouse, if filing jointly) were full-year Indiana residents.
• Form IT-40PNR - Use Form IT-40PNR if:​
  • You were a nonresident or part-year resident of Indiana, or
  • You are filing jointly and one person was a full-year Indiana resident and the other was not, or
  • You do not qualify to file Form IT-40RNR.
• Form IT-40RNR - 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.
    • If you have any other kind of Indiana-source income, you are required to file Form IT-40PNR.

Hoosiers with one or more wage statement, such as a W-2 or Form 1099, will need to list all wage statements on Schedule IN-W. DOR-certified software vendors will have this form included in their products. Paper filers will need to include this form, along with other required forms and schedules, with their tax return.

You should file for a federal and/or state extension of time to file prior to the tax deadline.

This form only allows you to file your tax return after the original due date. Requesting an extension of time to file does not extend the deadline for paying any tax due. Any payment made when you file your tax return is subject to interest and penalties.

DOR may grant extensions for filing and paying certain income tax for those affected by natural disasters.

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

Tax Years 2021 and prior	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 file an original return, file an amended return using Form IT-40X.
Tax Years 2022 and forward	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 file an original return, file an amended return by clicking 'Amended" on the IT-40 .

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/

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

If you owe $100 or more, you can set up a payment plan with DOR once your tax return is processed, even if DOR has not yet sent a bill.

You can pay your tax bill or set up payment plans via INTIME, DOR’s e-services portal, at intime.dor.in.gov. For details on how to set up a payment plan for your Indiana individual income taxes, read these handy step-by-step guides:

• Create an INTIME Logon
• Set Up a Payment Plan with INTIME

If you are currently on a payment plan and wish to incorporate your most recent tax bill, you will need to visit one of DOR’s district offices or call DOR Customer Service.

Note: During peak periods, DOR customers may experience extended wait times for telephone or in-person service. Appointments are available for district office visits.

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

There are several requirements to meet if an individual died during or after Dec. 31 of the tax year but before filing their 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 of more than $1,000;
• The deceased was age 65 or older and had gross income of more than $2,000; or
• The deceased was a nonresident and had gross income from Indiana.

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. See more information.

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

You are most likely in a stage of collection for taxes.

Please allow a minimum of three weeks for electronically filed returns and 12 weeks for paper-filed returns. You can easily check on the status of your refund via INTIME, DOR’s e-services portal, at intime.dor.in.gov.

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.

No, this deduction is only available to the person who is living in the rented residence.

These deductions are based on paying rent or property tax on your principal residence. If you paid Indiana property tax on your home and 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.

The easiest way to inquire about a tax bill is by signing up for INTIME, DOR's online e-services portal.

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. See more information.

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

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

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. 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 (POA) allows a third party to represent you regarding tax matters with DOR. In order for DOR to disclose information about your tax account, a representative must first complete the POA process.

The easiest way to obtain POA is through DOR’s e-services portal, INTIME, where the process can be completed in just a few minutes. Using this method, your representative will gain access to your tax records on INTIME, may respond to notices, and communicate with DOR electronically on your behalf.

The process of requesting POA access through INTIME starts with your practitioner or representative requesting POA access through their INTIME account. You may then approve the access request from your own INTIME account. More information on this process is available in the INTIME Guide.

You may also complete a paper form POA-1 to obtain Power of Attorney. Representatives will not gain access to your accounts through INTIME when using the paper POA-1 method.

Note: Extended time is required for a paper POA-1. Allow a reasonable amount of time for processing.

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

• Fax the POA-1 form to 317-615-2605.

If you don’t have access to the internet or are not able to access INTIME to approve the ePOA request, an access request letter will be mailed to your legal address on file with DOR. The letter can be used to approve the ePOA and your tax practitioners access request to INTIME.

Yes, CPAs can submit the POA-1 form for their clients as long as the document is signed by the customer.

Regardless of whom customers designate as their POAs, the POA-1 form does not need to be notarized.

No, a POA must be on file. DOR will speak to a family member only if they have been declared a POA representative. However, if a married couple filed a joint return, DOR can speak to either spouse without a POA.

If your family member has internet access, it may be easiest to have them approve the POA request online through INTIME.

The military family member can also download the POA-1 form from DOR’s website. Once completed and signed, the POA-1 form can be submitted via mail or fax.

Customers can designate anyone, including family members, CPAs or attorneys, to be their POA representative.

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.

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.

When completing an electronic Power of Attorney (ePOA) for INTIME, 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.

There is no cost to the taxpayer or Power of Attorney (POA) representative to complete an electronic Power of Attorney (ePOA) for access to a client’s INTIME account or to file a POA-1 form.

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.

Your POA will expire five years from the date it became effective.

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.

Refer to page 6 of the Form IT-40PNR tax booklet to see what the guidelines are for the other state(s).

If you lived or worked in Indiana on Jan. 1, you will need to figure county tax.

Any business entity (individual, partnership, corporation, etc.) that makes purchases of tangible personal property is subject to use tax unless they have paid at least 7% sales tax on the purchase to the vendor.

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 7% sales tax at the time of purchase you do not owe a 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)

• 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 7% 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 7% 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 6% sales tax on the selling price. The manufacturer owes an additional 1% 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 7% 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 7%. The individual can report these purchases on their Individual Income Tax Returns (IT-40) or they may use a Form ST-115.

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. If the auctioneer collects the 7% sales tax, you will not owe any additional use tax. If the auction takes place on the premises of the owner of the tangible personal property, the items are "casual sales," and are 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)

The Indiana use tax rate is 7%.

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

• If you paid sales tax of 7% or more to the other state, you do not owe use tax to Indiana
• If you paid sales tax of less than 7% to the other state, your Indiana use tax will be the difference between the Indiana 7% use tax and the amount you paid to the other state.

Form 1099-G is a report from DOR of the income you received during the tax year. 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 the tax year to individuals who claimed itemized deductions on their federal income tax returns in Box 3. DOR must also include any interest paid on those refunds, credits or offsets.

Form 1099-G is a report from DOR of income you received during the tax year. 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.

DOR's records show that we issued you a refund or overpayment credit for the taxable year shown in Box 3. You may be required to report the refund or credit as income on your federal income tax return.

You may have to report a state refund received in the tax year as income if you claimed itemized deductions on your 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 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 federal tax return. When she filed her Indiana state tax return, she got a $300 refund. This means that she only paid $900 in state and county taxes altogether, rather than the $1,200 she claimed. Therefore, Sally will be required to report the $300 difference on her 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.)

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.

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 1099-G is incorrect.

Form 1099-G statements are usually mailed around January 1. If it's after the end of January and you still haven't received 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.

Yes. Contact us at 317-232-2240 or write to us at P.O. Box 7207, Indianapolis, IN, 46206-7207. Provide the incorrect Social Security number from the statement and your correct number, and we will issue a corrected statement to you.

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.

A refund and a credit are simply different types of overpayment transactions. We must include any overpayment allowed on your tax return, whether issued as a refund or as a credit, on our Form 1099-G. As a result, you are subject to the same federal reporting requirements as if you had received a refund check.

DOR is required to report refund transactions in the year they actually occur. Since your previous tax year refund was issued in the current year, DOR cannot issue a Form 1099-G as if the transaction took place in a previous year. Contact the Internal Revenue Service to find out whether you should amend your federal return or take some other action to correct the reporting error.

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 1099-G is correct as issued. For information on how to report the income and deduct your payment on your federal return, visit the IRS website.

DOR's records show that a refund for 2019 was issued on your account during 2022, and that you claimed itemized deductions for 2019. Since the transaction took place in 2022, the income would be reported on your 2022 federal return. If you don't have a record of filing an amended Indiana tax return for 2019 or of resolving a claim or dispute related to your 2019 return during 2022, you may contact DOR at 317-232-2240, P.O. Box 7207, Indianapolis, IN, 46206-7207, or call or visit one of our District Offices located throughout the state.

You have special filing considerations if Indiana is your military home of record.

• 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 separate the income to be taxed by Indiana.

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

If your spouse is a part- or full-year Indiana nonresident, income received during their 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.

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

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.