INDIANA 2 02 2 IT-40 Full-Year Resident Individual Income Tax Booklet freefile.dor.in.gov FAST • FRIENDLY • FREE
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WAIT!
YOU MAY QUALIFY FOR FREE ONLINE TAX FILING!
More than 85 percent of Indiana taxpayers filed electronically in 2021. Consider the benefits of filing electronically:
• Faster Refund. Electronic filing reduces errors and expedites refund time – within 10 to 14 days
(compared with 10 to 12 weeks for a paper return).
• Fewer Errors. Up to 20 percent of paper-filed returns have errors, which can result in delays and possible
penalty and/or interest for the taxpayer. Returns filed electronically, however, are 98 percent accurate.
• Easier Filing. You won’t have to complete the many complicated forms in this booklet. Instead, you go online,
answer some easy questions, and before you know it your taxes are complete.
You may be eligible to file your taxes online for FREE with INfreefile. Go to www.in.gov/dor/individual-income-taxes/
infreefile to see if you qualify or learn more about INfreefile on page 4.
SP 265
(R22 / 9-22)
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Which Indiana Tax Form Should You File? • A new credit (869) is available for qualified film and media
productions. See page 39 for more information.
Indiana has three different individual income tax returns. Read the • The Adoption Credit has been increased to 20% of the federal
following to find the right one for you to file. adoption credit or $2,500 per eligible child, whichever is less.
Also, there is a $2,500 cap per eligible child if the credit is claimed
Form IT-40 for Full-Year Residents over multiple years. In addition, the adoption credit is now a
Use Form IT-40 if you (and your spouse, if married filing jointly) were refundable credit. See page 31 for further information.
full-year Indiana residents. • Beginning in 2022, the Headquarters Relocation Credit (818)
must be reported on Schedule IN-OCC.
Form IT-40PNR for Part-Year and Full-Year • School Scholarship Tax Credit Contribution ceiling increased.
Nonresidents The total of allowable net contributions to the program has
Use Form IT-40PNR if you (and your spouse, if married filing jointly): increased to $18.5 million for the program’s fiscal year of July 1,
• Were Indiana residents for less than a full-year or not at all, or 2022 through June 30, 2023.
• Are filing jointly and one was a full-year Indiana resident and the • Automatic Taxpayer Refund. A $200 per individual automatic
other was not a full-year Indiana resident, and taxpayer refund is available for certain taxpayers who did not
• Do not qualify to file Form IT-40RNR. qualify for the automatic taxpayer refunds issued during 2022.
Please see page 31 for additional information.
Form IT-40RNR for Full-Year Residents of Reciprocal
States Deductions
Use Form IT-40RNR if you (and your spouse, if married filing jointly) • A new deduction (635) is available for amounts paid from
were: Indiana education scholarship accounts for qualifying expenses,
• Full-year residents of Kentucky, Michigan, Ohio, Pennsylvania or but only to the extent the payment is included in federal gross
Wisconsin, and income. See page 20 for more information.
• The only type of income from Indiana was from wage, tip, salary • A new deduction (637) is available to report student loan interest
or other compensation.* payments to the extent the interest was paid by your employer and
required to be added back to Indiana adjusted gross income. See
*You are required to file Form IT-40PNR if you have any other kind of page 19 for more information.
Indiana-source income. • A new deduction (638) is available for amounts paid from
Indiana enrichment scholarship accounts for qualifying expenses,
Note. If you have income that is being taxed by both Indiana and but only to the extent the payment is included in federal gross
another state, you may have to file a tax return with the other state. income. See page 20 for more information.
• For 2022, the COVID-related Employee Retention Credit
Military Personnel Disallowed Expenses Deduction (634) is limited to certain cases.
See the instructions on page 7 to determine which form to file. See page 19 for more information.
Military personnel stationed in a combat zone should see the
instructions on page 7 for extension of time to file procedures. Exemptions
• A new $3,000 exemption is available for qualifying adopted
children. See page 22 for more information.
• A new Schedule IN-DEP-A has been created to report any
2022 Changes qualifying adopted children for purposes of claiming the adopted
child exemption. See page 25 for more information.
Update. Line 1 of Form IT-40 assumes conformity with the Internal
Revenue Code of 1986, as amended and in effect on March 31, 2021.
Miscellaneous
If the 2023 Indiana General Assembly does not conform to the most • A new Schedule IN-W is available to report taxes withheld on
current changes to the Internal Revenue Code, you may have to amend
your behalf (and your spouse, if married filing jointly).
your tax return at a later date to reflect any differences between Indiana
and federal law. You may wish to periodically check DOR’s homepage
at www.in.gov/dor for updates.
Need Tax Forms or Information Bulletins?
Add-backs
• The Student Loan Discharge Add-Back (150) rules have been Use Your Personal Computer
adjusted. See page 13 for more information. Visit our website and download the forms you need. Our address for
tax forms is www.in.gov/dor/tax-forms.
Credits
• A new credit (867) is available for qualifying donations to Visit a District Office
approved foster care organizations. See page 39 for more Some tax forms are available at district offices located throughout the
details. state. These offices are open Monday - Friday, 8 a.m. to 4:30 p.m. local
• A new credit (868) is available for the venture capital investment time. Visit www.in.gov/dor/contact-us/district-office-contact-info for
credit for amounts provided to a Qualified Indiana Investment a list of these offices, including addresses and telephone numbers.
Fund. See page 32 for more information.
IT-40 Booklet 2022 Page 3
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information bulletins, an online helpdesk, helpful email links and a
calendar with filing due dates. Visit DOR’s website at www.in.gov/dor.
Need Help With Your Return?
Local Help Moving?
You may be eligible to take advantage of the IRS Volunteer Return Notify DOR if you move to a new address after filing your tax return,
Preparation Program (VRPP). This program offers free tax return Change your address with us by doing one of the following:
help to low income, elderly and special needs individuals. Volunteers • Use DOR’s e-services portal, the Indiana Taxpayer Information
will fill out federal and state forms for those who qualify. Call the IRS Management Engine (INTIME), to change your address at intime.
at 1-800-829-1040 to find the nearest VRPP location. Be sure to take dor.in.gov. INTIME offers customers the ability to manage their
your W-2s, 1099s and a copy of last year’s state and federal tax returns. tax account(s) in one convenient location, 24/7.
You can change your address by creating an INTIME log on. Once
Information Line logged in, go to the “All Actions” tab and locate the “Update Name
Call the information line at (317) 232-2240 to get the status of your and Addresses” panel and select the “Addresses” tab.
refund, billing and payment plan information, a copy of your tax An INTIME User Guide for Individual Income Tax Customers is
return, or prerecorded tax topics. If you wish to check for billing available at www.in.gov/dor/files/intime-individual-guide.pdf to
information, be sure to have a copy of your tax notice. The system will help you through the process.
ask you to enter the tax identification number shown on the notice. To • Fax your request, including your Social Security number, old
speak to a representative, please call during regular business hours, 8 address, new address and signature, to 317-615-2608.
a.m. to 4:30 p.m., Monday - Friday. • Mail the request, including your Social Security number, old
address, new address and signature, to Indiana Department of
Internet Address Revenue, P.O. Box 6197, Indianapolis, IN 46206-6197.
If you need help deciding which form to file, or need to get information • Visit one of our District Offices (find locations here: www.in.gov/dor/
bulletins or policy directives on specific topics, visit our website at www. contact-us/district-office-contact-info) in person. Make sure to bring
in.gov/dor. your Social Security number, old address, and new address with you.
Telephone Filing an Amended (Corrected) Tax Return
Call us at (317) 232-2240 Monday - Friday, 8 a.m. to 4:30 p.m., for help If you need to amend (correct) your 2022 individual income tax return
with basic tax questions. after you initially filed:
• Prepare another IT-40 return that reflects all changes and check
the “Amended” box on the front page. Failure to do so can delay
processing.
Ready to File Your Return? • Attach a copy of all required schedules reflecting all changes and
documentation. Failure to do so can delay processing.
Use an Electronic Filing Program • File the amended return electronically, if possible.
More than 85% of Hoosier taxpayers used an electronic filing program
to file their 2021 state and federal individual income tax returns. Note. All amounts previously paid should be reported as an estimated
Electronic filing provides Indiana taxpayers the opportunity to file their payment. All refunds previously received should not be reported on an
federal and state tax returns immediately, and receive their Indiana amended filing.
refunds in about half the time it takes to process a paper return. It takes
even less time if you use direct deposit, which deposits your refund If you are filing an amended return for 2022 reporting additional tax and
directly into your bank account. Even if there is an amount due on you previously received a refund, the department will issue either a notice
either return, Indiana taxpayers can still file electronically and feel of proposed assessment or demand for payment to request repayment of
comfortable knowing that the returns were received by the IRS and the the refund plus interest and penalty.
Indiana Department of Revenue (DOR). Use an electronic vendor or
contact your tax preparer to see if he or she provides this service. The Form IT-40 and supporting schedules are located at www.in.gov/
dor/tax-forms/2022-individual-income-tax-forms. For prior years,
INfreefile please see the instructions for that year.
This tax season Indiana continues to offer a free tax filing service
through the cooperation of the Free File Alliance. Eligible Indiana Annual Public Hearing
taxpayers can file both the federal and Indiana individual tax returns In accordance with the Indiana Taxpayer Bill of Rights, DOR will
using highly interactive and easy-to-use web-based applications that conduct an annual public hearing in Indianapolis in June 2023. Event
speed both returns and refunds. You can choose from a list of multiple details will be listed at www.in.gov/dor/news-media-and-publications/
vendors that provide this free service. DOR estimates nearly 2 million dor-public-events/annual-public-hearings. Please come and share
Indiana taxpayers are eligible for this free service. See if you are feedback or comments about how DOR can better administer Indiana
eligible by visiting www.in.gov/dor/individual-income-taxes/infreefile. tax laws. If not able to attend, please submit feedback or comments in
writing to: Indiana Department of Revenue, Commissioner’s Office,
Our Website MS# 101, 100 N. Senate Avenue, Indianapolis, IN 46204. Our homepage
Our website offers tax filing options, a Spanish version of the IT-40 provides access to forms, information bulletins and directives, tax
booklet with forms, downloadable blank forms and instructions, publications, email, and various filing options. Visit www.in.gov/dor.
Page 4 IT-40 Booklet 2022
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• Married Persons Who Live Apart Filing Status
If you were not divorced or legally separated during the tax year
Before You Begin
you may have qualified for and filed as ‘head of household’ on
Important. You must complete your federal tax return first. your federal income tax return. If you did, do not check the
married filing separately box. Also, do not enter either your
Filling in the Boxes – Please Use Ink spouse’s name or Social Security number.
If you are filling out the form by hand, please use black or blue ink and
print your letters and numbers neatly within each box. If you do not Military Address
have an entry for a particular line, leave it blank. Do not use dashes, Overseas military addresses must contain the APO, FPO designation
zeros or other symbols to indicate that you have no entry for that line. in the “city field” along with a two-character “state” abbreviation of
AE, AP, or AA and the ZIP code. Place these two- and three-letter
Social Security Number designations in the city name area.
Be sure to enter your full 9-digit Social Security number in the boxes
at the top of the form. If filing a joint return, enter your Social Security ZIP/Postal Code
number in the first set of boxes and your spouse’s full 9-digit Social Enter your five- or nine-digit ZIP code (do not use a dash). For
Security number in the second set of boxes. An incorrect or missing example, enter 46217 or 462174540. If filing with a foreign address,
Social Security number can increase your tax due, reduce your refund, enter the associated postal code.
or delay timely processing of your filing.
Foreign Country Code
Individual Taxpayer Identification Number (ITIN) Complete this area if the address you are using is located in a foreign
If you already have an ITIN, enter it wherever your Social Security country. Enter the 2-character foreign country code, which may be
number is requested on your tax return. If you are in the process of found online at www.in.gov/dor/legal-resources/tax-library/foreign-
applying for an ITIN, check the box located directly beneath the Social country-code-listing.
Security number area at the top of the form. For information on how
to get an ITIN, contact the IRS at 1-800-829-3676 and request federal County Information
Form W-7, or find it online at www.irs.gov. Enter the two-digit code numbers for the county(s) where you and
your spouse, if filing jointly, lived and worked on Jan. 1, 2022. You
Name and Suffix can find these code numbers on the chart found on the back of
Please use all capital letters when entering your information. For Schedule CT-40. See the instructions beginning on page 45 for
example, Jim Smith Junior should be entered as JIM SMITH JR. more information, including the definitions of the county where
you live and work, details for military personnel, retired individuals,
Name. If your last name includes an apostrophe, do not use it. For homemakers, unemployed individuals, out-of-state filers, etc.
example, enter O’Shea as OSHEA. If your name includes a hyphen, use
it. For example, enter SMITH-JONES. Refund Check Address
Your refund check will be issued in the name(s), address and Social
Suffix. Enter the suffix associated with your name in the appropriate box. Security number(s) shown on your tax return. It is very important that
• Use JR for junior and SR for senior. this information is correct and legible. Any wrong information will
• Numeric characters must be replaced by alphabetic Roman delay your refund.
Numerals. For example, if your last name is Charles 3rd, do not
use 3rd; instead, enter III in the suffix field. Rounding Required
• Do not enter any titles or designations, such as M.D., Ph. D., RET., Each line on which an amount can be entered has “.00” already filled
Minor or DEC’D. in. This is to let you know that rounding is required when completing
your tax return.
Married Filing Requirements
• Married Filing Jointly You must round your amounts to the nearest whole dollar.
If you filed your federal income tax return as married filing
jointly, you also must file married filing jointly with Indiana. To do this, drop amounts of less than $0.50.
Example. $432.49 rounds down to $432.00.
• Married Filing Separately
If you file your federal income tax return as married filing separately, Increase amounts of $0.50 or more to the next higher dollar.
you must also file as married filing separately with Indiana. Enter Example. $432.50 rounds up to $433.00.
both of your Social Security numbers in the boxes on the top of the
form, and then check the box directly to the right of those boxes. Losses or Negative Entries
Enter the name of the person filing the return on the top line, but When reporting a loss or negative entry, use a negative sign.
do not enter the spouse’s name on the second name line. Example. Write a $125 loss as -125.
IT-40 Booklet 2022 Page 5
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Commas Full-year residents must file Form IT-40, Indiana Full-Year Resident
Do not use commas when entering amounts. For instance, express Individual Income Tax.
1,000 as 1000.
You are a full-year Indiana resident if you maintain your legal
Enclosing Schedules, W-2s, Etc. residence in Indiana from Jan. 1 – Dec. 31 of the tax year. You
You will find an enclosure sequence number in the upper right-hand do not have to be physically present in Indiana the entire year to
corner of each schedule. Make sure to put your completed schedules be considered a full-year resident. Residents, including military
in sequential order behind the IT-40 when assembling your tax return. personnel, who leave Indiana for a temporary stay, are considered
Do not staple or paper clip your enclosures. If you have a schedule residents during their absence.
on which you’ve made no entry, do not enclose it unless you have
completed information on the back of it. Retired persons spending the winter months in another state may still
be full-year residents if:
Also, enclose: • They maintain their legal residence in Indiana and intend to
• All W-2s, 1099s, Forms IN-MSID-A and IN K-1s on which return to Indiana during part of the taxable year
Indiana state and/or county tax withholding amounts appear • They retain their Indiana driver’s license
• All 1099Gs showing unemployment compensation • They retain their Indiana voting rights
• A check/money order, if applicable • They claim a homestead deduction on their Indiana home for
property tax purposes
A note about your W-2s. It is important that your W-2 form is
readable. The income and state and county tax amounts withheld are * To figure your exemptions for filing requirement purposes, Indiana
verified on every W-2 form that comes in with your tax return. We allows a $1,000 exemption for you and a $1,000 exemption for your
encourage you to enclose the best copy available when you file. spouse (if married filing jointly). You also get a $1,000 exemption
for each dependent you are eligible to claim. See instructions
A note about the $200 additional taxpayer refund. beginning on page 22 for additional information concerning how
If you or your spouse (if married filing jointly): to figure your dependents. If your gross income is less than your total
• are claiming the $200 additional taxpayer refund on you or your exemptions figured above, you are not required to file. However, you
spouse’s behalf, and may want to file a return to get a refund of any state and/or county
• the individual for whom the credit is being claimed received any tax withheld by your employer, or other refundable credits, such as an
Social Security benefits other than Supplemental Security income earned income credit or estimated tax payment.
(SSI),
the Form SSA-1099 for that individual must be attached to the return. Part-Year Residents and Full-Year Nonresidents
If you were a part-year resident and received income while you lived
• If the individual for whom the credit is being claimed received in Indiana, you must file Indiana Form IT-40PNR, Part-Year Resident
only SSI, you must attach a benefits verification letter. or Nonresident Individual Income Tax Return.
• See the instructions for Schedule 5, Line 11 on page 31 for
special instructions related to electronically-filed returns. If you were a legal resident of another state(s) (exception: see next
paragraph) and had income from Indiana (except certain interest,
dividends, or retirement income), you must file Form IT-40PNR.
Who Should File?
You may need to file an Indiana income tax return if: Full-Year Residents of Kentucky, Michigan, Ohio,
• You lived in Indiana and received income, or Pennsylvania or Wisconsin
• You lived outside Indiana and had any income from Indiana. If you were a full-year resident of Kentucky, Michigan, Ohio, Pennsylvania
or Wisconsin, and your only income from Indiana was from wages,
Filing Status Requirement. If you and your spouse file a joint federal salaries, tips or commissions, then you need to file Form IT-40RNR,
tax return, you must file a joint tax return with Indiana. If you and Indiana Reciprocal Nonresident Individual Income Tax Return.
your spouse file separate federal tax returns, you must file separate tax
returns with Indiana. Deceased Taxpayers
If an individual died during 2022, or died after Dec. 31, 2022, but
Note. There are three types of Indiana tax returns available. The type before filing his/her tax return, the executor, administrator or
you need to file is generally based on your residency status. Read the surviving spouse must file a tax return for the individual if:
following to decide if you are a full-year resident, part-year resident, or • The deceased was under the age of 65 and had gross income more
nonresident of Indiana, and which type of return you should file. than $1,000
• The deceased was age 65 or older and had gross income more
than $2,000, or
Full-Year Residents
If you were a full-year resident of Indiana and your gross income • The deceased was a nonresident and had gross income from Indiana.
(the total of all your income before deductions) was greater than
certain exemptions*, you must file an Indiana tax return. Be sure to enter the month and day of death for the taxpayer or spouse
in the appropriate box located on Schedule 7. For example, a date of
death of Jan. 9, 2022, would be entered as 01/09/2022.
Page 6 IT-40 Booklet 2022
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Note. The date of death should not be entered here if the individual
died after Dec. 31, 2022, but before filing the tax return. The date of
When Should You File?
death information will be shown on the individual’s 2023 tax return. Your tax return is due April 18, 2023. If you file after this date and owe
tax, you will owe interest on the unpaid amount and you may owe
Signing the Deceased Individual’s Tax Return penalty, too. See page 11 for more information.
If a joint return is filed by the surviving spouse, the surviving spouse
should sign his or her own name and after the signature write: “Filing Fiscal year tax returns are due by the fifteenth (15) day of the fourth
as Surviving Spouse.” (4th) month after the close of the fiscal year. You must complete the
fiscal year filing period information at the top of the Form IT-40.
An executor or administrator appointed to the deceased’s estate must
file and sign the return (even if this isn’t the final return), indicating Extension of Time to File — What if You Can’t File on
their relationship after their signature (e.g. administrator). Time?
You must get an extension of time to file if you:
If there is no executor, or if an administrator has not been appointed, • Are required to file, and
the person filing the return should sign and give their relationship to • You cannot file your tax return by the April 18, 2023 due date.
the deceased (e.g. “John Doe, nephew”). Only one tax return should be
filed on behalf of the deceased. Whether you owe additional tax, are due a refund, or are breaking
even, you still need to get an extension if filing after April 18, 2023.
Note. DOR may ask for a copy of the death certificate, so please keep a
copy with your records. Note. Indiana’s Application for Extension of Time to File, Form IT-9,
extends the filing date to Nov. 15, 2023.
Refund Check for a Deceased Individual
If you (the surviving spouse, administrator, executor or other) have If You Owe…
received a refund check and cannot cash it, contact the State Auditor’s
Office at www.in.gov/auditor/contact-us to get a widow’s affidavit Option 1. File Indiana’s Application for Extension of Time to File,
(POA-30) or a distributee’s affidavit (POA-20). Send the completed Form IT-9. This must be filed by April 18, 2023, for the extension
affidavit, the refund check and a copy of the death certificate to the request to be valid.
State Auditor’s Office so a refund check can be issued to you.
Note. You may file Indiana’s Application for Extension of Time to File
Military Personnel — Residency online if you make a payment with it by April 18, 2023.
If you were an Indiana resident when you enlisted, you remain an Pay electronically using DOR’s e-services portal, the Indiana Taxpayer
Indiana resident no matter where you are stationed. You must report Information Management Engine (INTIME), by visiting intime.dor.
all your income to Indiana on Form IT-40. in.gov. INTIME offers customers the ability to manage their accounts
in one convenient location, 24/7.
If you changed your legal residence (military home of record) during
the tax year, you are a part-year resident and should file Form Option 2. Filing for a federal application for extension of time to file
IT-40PNR. You must also enclose a copy of Military Form DD-2058 with the IRS will automatically provide for a state extension of time to
with the tax return. As an Indiana part-year resident you will be taxed file. You must file your state tax return by Nov. 15, 2023, paying any
on the income you earned while you were a resident of Indiana, plus balance due with that filing.
any income from Indiana sources.
While interest is due on any amount paid after the original April 18 due
If you are stationed in Indiana and you are a resident of another state, date, penalty will be waived if both of the following conditions are met:
you won’t need to file with Indiana unless you have non-military • The remaining balance due is paid in full by Nov. 15, 2023, and
income from Indiana sources. • You paid at least 90% of the tax expected to be owed by the
original April 18 due date.
Example. Annie, who is a Kansas resident, is stationed in Indiana. She
earned $1,300 from her Indiana part-time job. She will need to report If You Don’t Owe…
that income to Indiana on Form IT-40PNR.
You’ll need to file for an extension if:
If you are a full-year Indiana resident in the military, your spouse is a • You are due a refund, or
legal resident of another state and you filed a joint federal return, you • You don’t expect to owe any tax when filing your tax return, and
will need to file Form IT-40PNR. • You are unable to file your return by April 18, 2023.
Important. Refer to the instructions on page 45 for an explanation There are two ways to accomplish this:
of county of residence for military personnel. • If you have a federal extension (you filed Form 4868, or made
an extension payment via an electronic filing method), you
automatically have an extension with Indiana and do not have to
file for a separate state extension (Form IT-9).
• If you do not have a federal extension, file Form IT-9 by April 18, 2023.
IT-40 Booklet 2022 Page 7
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Extension Filing Deadline. Line 1 – Federal Adjusted Gross Income
Both state Form IT-9 and federal Form 4868 extend your state filing Enter the adjusted gross income from your federal Form 1040/1040-
time to Nov. 15, 2023. SR, line 11. If you were not required to file a federal return, complete a
“sample” federal return and report the amount you would have shown
Will You Owe Penalty and/or Interest? on your federal return if you had been required to file.
Penalty will not be owed if you have:
• Paid 90% of the tax you expect to owe by April 18, 2023, When reporting a loss or negative entry, use a negative sign. Example.
• Filed your tax return by Nov. 15, 2023, and Write a $125 loss as -125.
• Paid any remaining amount due (including interest) with that filing.
Line 2 – Add-Backs
Interest is owed on all amounts paid after April 18, 2023. See page Enter on this line any add-backs from Schedule 1: Add-Backs.
11 for instructions on how to figure interest. Instructions for Schedule 1 begin on page 12. Make sure to enclose
Schedule 1 when filing.
Indiana’s Extension of Time to File, Form IT-9
You may get Form IT-9 online at www.in.gov/dor/tax-forms/2022- Line 4 – Deductions
individual-income-tax-forms. You may file Indiana’s Application for Enter on this line any deductions from Schedule 2: Deductions.
Extension of Time to File online if you make a payment with it by Instructions for Schedule 2 begin on page 15. Make sure to enclose
April 18, 2023. Pay electronically using DOR’s e-services portal, the Schedule 2 when filing.
Indiana Taxpayer Information Management Engine (INTIME), by
visiting intime.dor.in.gov. INTIME offers customers the ability to Line 6 – Exemptions
manage their accounts in one convenient location, 24/7. Enter any exemptions from Schedule 3: Exemptions on this line.
Instructions for Schedule 3 begin on page 23. Make sure to enclose
Where to Report Your Extension Payment. Schedule 3 when filing.
Add your state extension payment to any estimated tax paid. Report
the total on Schedule 5, line 3. Line 9 – County Tax
Complete Schedule CT-40 to figure your county tax. Instructions for
Military personnel on duty outside of the United States and Puerto Schedule CT-40 begin on page 45.
Rico on the filing due date are allowed an automatic 60 day extension of
time to file. A statement must be enclosed with the return verifying that Line 10 – Other Taxes
you were outside of the United States or Puerto Rico on April 18, 2023. Enter any other taxes from Schedule 4: Other Taxes on this line.
Instructions for Schedule 4 begin on page 27. Make sure to enclose
Military personnel in a presidentially declared combat zone have an Schedule 4 when filing.
automatic extension of 180 days after they leave the combat zone. In
addition, if they are hospitalized outside the United States because of Line 12 – Credits
such service, the 180-day extension period begins after being released Enter your credits from Schedule 5: Credits on this line. Instructions
from the hospital. The spouse of such service member must use the for Schedule 5 begin on page 28. Make sure to enclose Schedule 5
same method of filing for both federal and Indiana (e.g. single or when filing.
joint). When filing the return, write “Combat Zone” across the top of
the form (above your Social Security number). Line 13 – Offset Credits
Enter the total of any offset credits reported on Schedule 6: Offset
Credits on this line. Instructions for Schedule 6 begin on page 35.
Form IT-40: Line-by-line Instructions Make sure to enclose Schedule 6 when filing.
Important. You must complete your federal income tax return, Form Line 17 – Donation Check-Offs
1040/1040-SR, before starting your Indiana income tax return. Line Enter on this line the total of any donations made on Schedule IN-
numbers from your federal income tax return are referenced in many DONATE. Make sure to enclose Schedule IN-DONATE, which is
of the following instructions. While every effort has been made to located at the bottom of Schedule 5: Credits, when filing. See page
make the instructions as clear as possible, sometimes the line numbers 34 for more information.
change on the federal income tax return after the Indiana forms are
finalized. Please contact us if you are unsure as to whether or not you Line 19 – Amount to be Applied as a 2023 Estimated
are looking at the correct line on your federal income tax return (see Tax Installment Payment
page 4 of this booklet for contact information). You should pay estimated tax if you expect to have income during the
2023 tax year that:
When Not to Fill In a Line • Will not have Indiana income taxes withheld, or
If you do not have an entry for a particular line, leave it blank. Do not • You think the amount withheld will not be enough to pay your tax
use dashes, zeros or other symbols to indicate that you have no entry liability, and
for that line. • You expect to owe more than $1,000 when you file your tax return.
Page 8 IT-40 Booklet 2022
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There are several ways you can make estimated tax payments. First, Line 20 – Penalty for Underpayment of Estimated Tax
visit our website at www.in.gov/dor/tax-forms/2022-individual- You might owe a penalty for the underpayment of estimated tax if you
income-tax-forms to get Form ES-40. Use the worksheet on Form ES- did not have taxes withheld from your income and/or you did not pay
40 to see how much you will owe. Then, if you have an overpayment enough estimated tax throughout the year.
showing on line 18 of your tax return, you can have some or all of the
overpayment applied to next year’s estimated tax account. To do so, In fact, not properly paying estimated tax is one of the most common
enter any portion of the overpayment: errors made in filing Indiana tax returns. Generally, if you owe $1,000
• On line a, if you want to apply an amount to offset estimated or more in state and county tax for the year that’s not covered by
county tax due (from Form ES-40 worksheet, line K). Also, enter withholding taxes, you need to be making estimated tax payments.
the 2-digit county code from line K; and/or
• On line b, if your spouse lived in a different county than you did You might owe this penalty if:
on Jan. 1, 2023, and you want to apply an amount to offset your • The total of your credits, including timely made estimated tax
spouse’s estimated county tax due (from Form ES-40 worksheet, payments, is less than 90% of this year’s tax due or 100% of last
line L). Also, enter the 2-digit county code from line L; and/or year’s tax due, ** or
• On line c, if you want to apply an amount to offset your estimated • You underpaid the minimum amount due for one or more of the
state tax due (from Form ES-40 worksheet, line J). installment periods.
Example. Mark and Megan have a $420 overpayment, and want to If either of these cases apply to you, you must complete Schedule IT-2210
apply $300 of it to their 2023 estimated tax account. Their worksheet or IT-2210A to see if you owe a penalty or if you meet an exception.
from Form ES-40 has the following breakdown: • If you owe this penalty, complete Schedule IT-2210 or IT-2210A
• Line I (each installment payment) is $300; and write the penalty amount on Form IT-40, line 20.
• Line J (portion that represents state tax due) is $270; and • If you meet an exception, complete Schedule IT-2210 or IT-2210A
• Line K (portion that represents county tax due) is $30. to show which exception was met.
They will enter $30 on line 19a (along with their 2-digit county code), Keep the completed form with your records as DOR may request it at
$270 on line 19c, and the $300 total amount to be applied will be a later date.
entered on line 19d. They will get a $120 refund ($420 overpayment
minus $300 applied to their 2023 estimated tax account). *You must have timely paid 100% of lines 8 and 9 of your 2021 IT-40
or IT-40PNR. Note: If last year’s Federal adjusted gross income was
Example. Stu wants to pay $500 in estimated tax for each installment more than $150,000 ($75,000 for married filing separately), you must
period. He has a $30 overpayment on his tax return. He chooses to pay 110% of last year’s tax (instead of 100%) to meet this exception.
enter the full $30 overpayment on line 19c (Indiana adjusted gross
income tax amount), and carries it to line 19d. (He will pay the $470 **Farmers and fishermen should see the special instructions on page 10.
additional amount by filing the Form ES-40.)
Important. DOR will automatically assess an underpayment penalty if
Important. Estimated tax installment payments made for the 2023 tax it looks like you owe a penalty for the underpayment of estimated tax.
year are due by:
• April 18, 2023 (1st installment) Should You Use Schedule IT-2210 or Schedule IT-2210A?
• June 15, 2023 (2nd installment) Schedule IT-2210 should be used by individuals who receive income
• Sept. 15, 2023 (3rd installment) (not subject to withholding tax) on a fairly even basis throughout the
• Jan. 16, 2024 (4th installment) year. This schedule will help determine whether a penalty is due, or
whether an exception to the penalty has been met.
Any installment payment amount entered on line 19d will be considered
to be paid on the day your tax return is filed (postmarked). For instance, Example. Jim and Sarah together received $4,500 in pension income
an installment payment shown on a return filed on: April 18, 2023, will each month. Since their income is received on a fairly even basis, they’ll
be considered to be a 2023 first installment payment; June 3, 2023, will use Schedule IT-2210 to figure their penalty or exception to the penalty.
be considered to be a 2023 second installment payment; and July 22,
2023, will be considered to be a 2023 third installment payment. Farmers and fishermen have special filing considerations. If at least
two-thirds of your gross income is from farming or fishing, complete
Note. You may complete and mail the ES-40, Estimated Tax Payment Schedule IT-2210, using the Section D Short Method.
form, along with your payment to DOR’s return address on the form.
Estimated payments can also be made online with an electronic bank Schedule IT-2210A may be used by individuals who receive income
payment (ACH/e-check) or Visa, MasterCard and Discover debit or (not subject to withholding tax) unevenly during the year. Also use
credit cards by using DOR’s e-services portal, the Indiana Taxpayer this form if you had substantial changes in withholding during the
Information Management Engine (INTIME), at intime.dor.in.gov. See year. See Income Tax Information Bulletin #3 available at www.in.gov/
line 26 instructions on page 11 for details about payment options. dor/files/reference/ib03.pdf for further information. This schedule will
help determine whether a penalty is due, or whether an exception to
See Income Tax Information Bulletin #3 at www.in.gov/dor/files/ the penalty has been met.
reference/ib03.pdf for additional information about estimated taxes.
IT-40 Booklet 2022 Page 9
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Example. Bill’s income is from selling fireworks in June and July. He • Call (317) 232-2240 for automated refund information; to speak
will want to figure any penalty due on Schedule IT-2210A, which may to a representative, please call during regular business hours, 8
exempt him from having had to pay estimated tax on the April 18, a.m. to 4:30 p.m., Monday - Friday.
2022 first installment due date.
A refund directly deposited to your bank account may be listed on
Example. Rachael received a sizeable lump sum distribution in your bank statement as a credit, deposit, etc. If you have received
December of 2022. She figured how much estimated tax was due, and information from DOR that your refund has been issued, and you are
paid it in full by the Jan. 17, 2023, fourth period installment due date. not sure if it has been deposited in your bank account, call the ACH
By completing Schedule IT-2210A, she shows she owes no penalty Section of your bank or financial institution for clarification.
for the first three installment periods, and that a proper payment was
made for the fourth installment period. She will owe no penalty. Important. If we are unable to deposit your refund to the listed
account (incorrect/incomplete account numbers; account closed;
Farmers and Fishermen. refund to go to an account outside the United States; etc.), DOR will
Special options are available if more than two-thirds of your gross mail a paper check to the address on the front of the tax form.
income for 2021 and/or 2022 was from farming or fishing.
Note. A refund deposited directly to your Hoosier Works MasterCard
Option 1. Pay your estimated tax in one payment on or before Jan. 17, account will appear on your monthly statement.
2023, and file your tax return by April 18, 2023; or
Option 2. Make no estimated tax payment and file your tax return and Statute of Limitations for Refund Claims
pay all the tax due by March 1, 2023. There is a statute of limitations when filing for a refund of overpaid
taxes for tax year 2022. In general, a claim for refund must be made
Example. More than two-thirds of Henry’s gross income is from by April 15, 2026 (Nov. 16, 2026 if filing under extension). The claim
farming. He should complete Schedule IT-2210. Henry will be able for refund is considered to be made on the day your tax return
to use the Section D Short Method to figure his penalty or to show he is postmarked. If you file your 2022 tax return after the statute of
meets an exception to owing a penalty. limitations has expired, no refund will be issued.
Visit our website at www.in.gov/dor/tax-forms/2022-individual- Line 22 – Direct Deposit
income-tax-forms to get Schedule IT-2210 or Schedule IT-2210A. You may choose to have your refund deposited in your checking, savings
or Hoosier Works Master Card account. If you want your refund directed
Line 21 – Refund into your checking or savings account, complete lines 22 a, b, c and d.
You have a refund if line 18 is greater than the combined amounts
entered on lines 19d and 20. Caution. If you choose this option, make sure to verify the account
information after you have entered it. This will help ensure your
Important. If the combination of line 19d plus line 20 is greater than refund is deposited into your desired account.
the amount on line 18, you must make an adjustment. The estimated
tax carryover amount on line 19d is limited; it cannot be greater than The routing number is nine digits, with the first two digits of the
the remainder of line 18 minus line 20. See the second example about number beginning with 01 through 12 or 21 through 32. Do not use a
Stu under the Line 19 instructions on page 9. deposit slip to verify the number because it may have internal codes as
part of the actual routing number.
A Note About Refund Offsets
Indiana law requires that money you owe to the state, its agencies, and The account number can be up to 17 digits. Omit any hyphens, accents
certain federal agencies, be deducted from your refund or credit before and special symbols. Enter the number from left to right and leave any
a refund is issued. This includes money owed for past-due taxes, student unused boxes blank.
loans, child support, food stamps or an IRS levy. If DOR applies your
refund to any of these debts, you will receive a letter explaining the Check the appropriate box for the type of account you are making
situation. your deposit to: either a checking account or savings account.
When to Expect Your Refund To comply with banking rules, you must place an X in the box on line
Generally, 10 to 14 business days is the average wait for a refund if d if your refund is going to an account outside the United States. If you
the tax return is electronically filed; it can take up to 12 weeks for the check the box, we will mail you a paper check.
refund to be issued if you mail in your tax return.
If you currently have a Hoosier Works MasterCard and wish to have
Where’s Your Refund? your refund directly deposited in your account, enter your 12-digit
There are several ways to check the status of your refund. You will account number on line 22b, where it says “Account Number” (do
need to know the exact amount of your refund, and a Social Security not write anything on line 22a “Routing Number”). You can find
number entered on your tax return. Then, do one of the following: your 12-digit account number in the upper right-hand corner of your
• Go to www.in.gov/dor/individual-income-taxes/check-the-status- account monthly statement.
of-your-refund and click Check the Status of Your Refund.
Page 10 IT-40 Booklet 2022
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Note. DO NOT use your MasterCard 16-digit number. Make sure to Payment plan option. If you cannot pay the full amount due at the
check the “Hoosier Works MC” box on line 22c. time you file, you may be eligible to set up a payment plan online
using DOR’s e-services portal, the Indiana Taxpayer Information
For more information on direct deposit, please see “Where’s Your Management Engine (INTIME), at intime.dor.in.gov. INTIME offers
Refund?” in the left-hand column. customers the ability to manage their tax account(s) in one convenient
location, 24/7. After you get a tax bill, go to intime.dor.in.gov and
Line 23 create a log on using the Letter ID on your tax bill. Set up a payment
If line 21 is less than zero, you have an amount due. Enter here as a plan from the “All Actions” tab menu.
positive number and skip to line 24.
OR Important. If using the payment plan option, penalty and interest will
If line 15 is greater than line 14, complete the following steps: be due on all amounts paid after the April 18, 2023 due date.
Subtract line 14 from line 15 and enter the total here .. A __________
Enter any amount from line 20 ........................................ B __________ If you have questions, contact DOR in one of three ways:
Add lines A + B. Enter total here and on line 23 ........... C __________ • Use the secure messaging feature in the Indiana Taxpayer
Information Management Engine (INTIME). If you are not
Line 24 – Penalty registered, create an online account at intime.dor.in.gov. Select
You may owe a penalty if your tax return is filed after the April 18, “New to INTIME? Sign up” and follow instructions to complete
2023 due date and you have an amount due. Penalty is 10% of the the process. You will need your taxpayer ID (FEIN, SSN, etc.) and
amount due (line 23 minus line 20) or $5, whichever is greater. the unique Letter ID, printed in the upper-right hand corner of
this letter. Once logged in, select “Respond to a letter, notice, or
Exception. No penalty will be due if you have: bill” under the “All Actions” menu.
• An extension of time to file, • Call DOR Customer Service at 317-232-2240, Monday through
• Are filing and paying the remaining tax due by the extended filing Friday, 8 a.m. - 4:30 p.m. EST.
due date, and • Correspond with DOR via mail using this address:
• Have prepaid at least 90% of the amount due by April 18, 2023. Indiana Department of Revenue
100 N. Senate Ave.
Line 25 – Interest Indianapolis, IN 46204-2253
You will owe interest (even if you have an extension of time to file) if
your tax return is filed after the April 18, 2023 due date and you have Returned Checks and Other Types of Payments
an amount due. Interest should be figured on the sum of line 23 minus If you make a tax payment with a check, credit card, debit card,
line 20. Contact DOR at (317) 232-2240 or visit our website at www. electronic funds transfer, or any other instrument in payment by any
in.gov/dor/files/reference/dn03.pdf to get Departmental Notice #3 for commercially allowable means, and DOR is unable to obtain payment
the current interest rate. for its full amount when it is presented for payment through normal
banking channels, a $35 penalty will be assessed.
Line 26 – Amount Due – Payment Options
There are several ways to pay the amount you owe. The assessed amount will be due immediately upon receipt of the tax
due notice and must be paid by certified check, bank draft or money
Electronic payments can be made via DOR’s e-service portal, the Indiana order. Note. Any permits and/or licenses issued by DOR may be revoked
Taxpayer Information Management Engine (INTIME), at intime.dor. if the assessed amount is not paid immediately.
in.gov. INTIME offers customers the ability to manage their accounts in
one convenient location, 24/7. Accepted forms of payment via INTIME Signatures and Signing Dates
include electronic bank payment (ACH/e-check), Visa, MasterCard First, read the Authorization area on Schedule 7. Then, sign and date
and Discover debit or credit cards. No fees are assessed for electronic the tax return. If this is a jointly filed tax return, both you and your
bank payments. Fees apply to payments made with credit or debit cards. spouse must sign and date it. Make sure to enclose the completed
You do not need to logon to INTIME to make payments. Simply select Schedule 7 when filing.
the “Make a Payment” option on the page. An INTIME User Guide for
Individual Income Tax Customers is available at www.in.gov/dor/files/ Taxpayer Advocate
intime-individual-guide.pdf to help you through the process. As prescribed by the Taxpayer Bill of Rights, DOR has an appointed
Taxpayer Advocate whose purpose is to facilitate the resolution of
Another option is to mail your payment to: taxpayer complaints and complex tax issues. If you have a complex tax
Indiana Department of Revenue issue, you must first pursue resolution through normal channels, such
P.O. Box 7224 as contacting the customer service division at (317) 232-2240. If you
Indianapolis, IN 46207-7224 are still unable to resolve your tax issue, or a tax assessment places an
undue hardship on you, you may receive assistance from the Office of
You may pay in person at one of DOR’s district offices with cash, but with the Taxpayer Advocate.
the exact amount only. Other in-person options include paying with a
money order, cashier’s check or personal check made payable to DOR. For more information, and to get required schedules if filing for an
offer in compromise or a hardship case, visit our website at: www.
Note. All payments to DOR must be made with U.S Funds. in.gov/dor/contact-us/tao. You may also contact the Office of the
IT-40 Booklet 2022 Page 11
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Schedule 1: Add-Backs Wagering Taxes. The portion of wagering taxes required to be added
back as a tax based on or measured by income is being reduced (phased
Taxpayer Advocate directly at taxadvocate@dor.in.gov, or by telephone out). The percentage of taxes required to be added back is determined
at (317) 232-4692. Submit supporting information and documents to: by the first date of the taxpayer’s taxable year, and is determined as
Indiana Department of Revenue, Office of the Taxpayer Advocate, P.O. follows: 2020 – 75%; 2021 – 62.5%; 2022 – 50%; 2023 – 37.5% 2024 –
Box 6155, Indianapolis, IN 46206-6155. 25.0%; 2025 – 12.5%; 2026 and later – no add back required.
Where to Mail Your Tax Return For example, Casino X remits $10,000,000 in riverboat wagering taxes
in 2022. Individual owns 10% of Casino X. Individual’s share of Casino
If you are enclosing a payment, please mail your tax return with all X’s income taxes is $1,000,000. Instead of individual adding back the
enclosures to: full $1,000,000, Individual will add back $500,000.
Indiana Department of Revenue
P.O. Box 7224 Note. Income, losses and/or expenses from other schedules and
Indianapolis, IN 46207-7224 forms may flow through to federal Schedules C, E and F. For example,
partnership income from federal Schedule K-1 (Form 1065) may be
For all other filings, please mail your tax return with all enclosures to: included on federal Schedule E, while expenses from federal Form
Indiana Department of Revenue 8829 may be included on federal Schedule C. Make sure to check these
P.O. Box 40 schedules and forms for any deduction that needs to be added back.
Indianapolis, IN 46206-0040
Line 2 – Net Operating Loss Add-Back
Any net operating loss (NOL) deduction reported on line 8 of your
Schedule 1: Add-Backs federal Schedule 1 must be added back on this line. Write the amount of
Some amounts reported on your federal tax return may require the net operating loss as a positive figure. (You may be eligible to claim
different treatment for Indiana income tax purposes. Listed in this an Indiana net operating loss deduction on Schedule 2, under line 9.)
area are those items that may need to be added back on your Indiana
tax return. Please review the list carefully. When reporting these add- Note. Leave this line blank if you did not report a net operating loss
backs, maintain with your records the corresponding federal tax forms deduction on line 8 of your federal Schedule 1.
and schedules as DOR can require you to provide them at a later date.
Line 3 – OOS Municipal Obligation Interest Add-Back
Important Information About Possible Year-End Interest earned from a direct obligation of a state or political
Federal Legislation subdivision other than Indiana (out of state, or OOS) is taxable by
This publication was finalized before all year-end federal legislative Indiana if the obligation is acquired after Dec. 31, 2011. Interest earned
changes were complete. Therefore, some of these add-backs may need from obligations held or acquired before Jan. 1, 2012, is not subject to
to be adjusted. You may wish to periodically check DOR’s homepage at Indiana income tax and should not be reported as an add-back.
www.in.gov/dor for updates about any impact of late federal legislation.
Note. Interest earned from obligations of Puerto Rico, Guam, Virgin
Treatment of Previously Discontinued Add-Back Islands, American Samoa, or Northern Mariana is not included in
Several discontinued add-backs were created as a result of timing federal gross income and is exempt under federal law. There is no add-
differences between federal and Indiana allowable expenses. See Certain back for interest earned on these obligations.
Discontinued Add-Backs: How and When to Report a Final Catch-Up
Modification on page 14 for information about these add-backs. For more information about this add-back, see Income Tax
Information Bulletin #19 at www.in.gov/dor/files/reference/ib19.pdf.
Line 1 – Tax Add-Back
If you did not complete Federal Schedules C, E or F, which include sole Line 4 – Bonus Depreciation Add-Back
proprietorship income, farm income, rental, partnership, S corporation, You must make an exception for any bonus depreciation deduction
and trust and estate income (or loss), then do not complete this line. used for property placed in service after Sept. 11, 2001. Bonus
depreciation is the additional first-year special depreciation deduction
On those schedules you are allowed to claim a deduction for taxes paid allowed under Section 168(k) of the Internal Revenue Code (IRC).
which are:
• based on, or Figure the net income (or loss) that would have been included in
• measured by income, and federal adjusted gross income had the bonus depreciation method
• levied at a state level by any state in the United States. not been used. Then, enter the difference, which may be a positive or
negative amount, on line 4.
If you claimed this kind of deduction on any of these schedules,
then you must add it back to your Indiana income. Do not add back Example. Mack used the bonus depreciation method for federal income
property taxes on this line. tax purposes. After refiguring the depreciation without using the bonus
method, he has to add back $1,500 on his Indiana tax return.
Page 12 IT-40 Booklet 2022
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Schedule 1: Add-Backs Continued Conformity Add-Back – Negative Entry 147
This add-back generally is based on conformity issues arising from a
Note. After making an initial adjustment for bonus depreciation you previous year. However, in rare cases this can arise from conformity
will need to refigure the amount of depreciation available for state tax issues arising in the current year where the IRC treats an item as
purposes for subsequent years. taxable or nondeductible that was previously exempt or deductible.
Example. Ann made an initial adjustment for bonus depreciation on One example that occurs periodically is when there is a federal
last year’s Indiana tax return. This year she figures she is entitled to disaster. Congress will amend the IRC to permit IRA withdrawals
a $150 additional depreciation amount for state tax purposes. She to be included over three years (e.g., a 2022 withdrawal would be
should enter that amount as a negative entry, or -150, on line 4. included one-third in 2022, one-third in 2023, and one-third in
2024). If Indiana decoupled from the IRC, the whole amount would
Special rules may apply if the bonus depreciation is taken against property be included in 2022, none in 2023, and none in 2024. The Code 120
acquired in a like-kind exchange or acquired in a taxable year in which you would be for the two-thirds add-back in 2022, the Code 147 would be
have an excess business loss. See Income Tax Information Bulletin #118 at for the one-third deduction in 2023 and 2024. These have occurred
www.in.gov/dor/files/reference/ib118.pdf for additional information. from time to time but (1) did not affect Indiana because of the specific
disaster and (2) the IRC conformity date was updated in time.
Line 5 – Section 179 Expense Add-Back
You may have figured an IRC Section 179 expense using a ceiling of more Enter code 147 on Schedule 1 under line 6 if reporting this add-back.
than $25,000 for federal tax purposes. Indiana allows you to figure IRC
Section 179 expense using a ceiling of no more than $25,000. If you figured Employer Student Loan Payment Add-Back 148
IRC Section 179 expense using a ceiling amount of more than $25,000, you If your employer paid any amount for your student loans and you
will need to add back the difference between it and $25,000 on line 5. excluded the payment from your federal gross income, add back the
amount you excluded from your gross income. This amount must be
Special rules may apply if the bonus depreciation is taken against added back regardless of whether your employer paid you the amount
property acquired in a like-kind exchange or acquired in a taxable for your student loans or whether your employer paid the student loan
year in which you have an excess business loss. See Income Tax on your behalf. Also see the instructions for the deduction for the
Information Bulletin #118 at www.in.gov/dor/files/reference/ib118.pdf Employer Student Loan Payment Interest Deduction on page 19.
for additional information.
Meal Deduction Add-Back 149
Line 6 – Other Add-Backs If you:
Each of the following add-backs has been assigned a 3-digit code • claimed a deduction for meal expenses with regard to food and
number. When reporting the add-back, write its name, the associated beverages provided by a restaurant in computing your federal
3-digit number and the amount. adjusted gross income; AND
• the deduction would have been limited to 50% of the meal
Conformity Add-Back expenses if the expenses had been incurred before Jan. 1, 2021,
Before this publication was finalized Indiana had not conformed add back the amount deducted for federal purposes in excess of 50%
to any changes to the Internal Revenue Code (IRC) that may have of the food or beverage expenses.
become law after March 31, 2021. Therefore, the IRC used to figure
Indiana income may not wind up being the same as the IRC used to Do not add back any amounts:
figure federal income. • Claimed as an itemized deduction for federal income tax
purposes; or
This add-back is specific to these annual current year conformity • Any amount for which an exception to the 50% limitation was in
issues. If uncertainty exists as to whether or not Indiana will adopt effect for amounts paid before Jan. 1, 2021.
some or all of the federal legislation passed after March 31, 2021,
that acts to modify federal AGI, you may add-back those items as an Example. John incurs $2,000 in meal expenses during 2022 and
“other” add-back. In the event those items are adopted, an amended deducts the entire $2,000 in computing John’s 2022 federal adjusted
return should be filed to recoup the add-back(s). gross income. The meal expenses do not qualify for a federal exception
from the 50% limitation under pre-2021 IRC § 274. John is required to
Conformity Add-Back – Positive Entry 120 add back $1,000.
This add-back is only for current year conformity issues. Conformity
issues for preceding tax years must be addressed on the add-back line Student Loan Discharge Add-Back 150
specific to the item in question. If you had a student loan discharged during the taxable year and you
excluded the amount of the discharge from your federal gross income,
If the state legislature does not conform to federal code changes enacted add back the amount of discharged loans excluded from your federal
after March 31, 2021, you may have to amend your return at a later date gross income. Do not add back amounts discharged or repaid via:
to reflect any differences between Indiana and federal law. You may wish • The Public Service Loan Forgiveness Program.
to periodically check DOR’s homepage at www.in.gov/dor for updates. • The Teacher Loan Forgiveness Program.
• The National Health Service Corps Loan Repayment Program.
Enter code 120 on Schedule 1 under line 6 if reporting this add-back. • Other programs that qualify under IRC section 108(f)(4).
IT-40 Booklet 2022 Page 13
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Schedule 1: Add-Backs Continued • Qualified Restaurant Improvement Property, Code 108
• Qualified Retail Improvement Property, Code 109
• A discharge granted to a borrower under the Closed School or • Start-Up Expenditures, Code 131
Defense to Repayment discharge processes if the IRS permits the
discharge to be excluded from gross income. Required add-backs for the following modifications have been
• The death or total and permanent disability of the student. eliminated, effective Jan. 1, 2016:
• The discharge of the student loan in bankruptcy. • Qualified Disaster Assistance Property, Code 110
• If the student loan was discharged while the borrower was • Qualified Refinery Property, Code 111
insolvent. However, the discharge is limited to the amount the • Qualified Film or Television Production, Code 112
borrower was insolvent. Further, if a loan is discharged under
the other bullets, those discharges must be applied before the If you previously reported any of these add-backs, see the following
insolvency exception. example for guidance as to how to figure and report a final catch-up
modification.
Excess Federal Interest Deduction Modification 142
IRC Section 163(j) limits the federal interest deduction for most Example. Grant has qualified restaurant equipment. For federal tax
business interest to 30% (50% for 2019 and 2020 in certain cases) purposes he used the accelerated 15-year recovery period for an asset
of adjusted taxable income plus business interest. However, Indiana placed in service since 2009. Since 2009 Grant had been adding back
has decoupled from this provision. Subtract an amount equal to the the depreciation expense taken for federal purposes that exceeded the
amount as a deduction for excess business interest under IRC Section amount allowable for Indiana purposes. The accumulated depreciation
163(j) in the year in which the interest was first paid or accrued. If you on such an asset through 2012 was, therefore, different for federal
are deducting any business interest carried over from a previous year, and state purposes. This difference will remain until the asset is fully
add the amount of this interest deducted. Enter code 142 on Schedule depreciated or until the time of its disposition.
1 under line 6 if reporting this add-back.
A simple illustration:
Federal Repatriated Dividend Deduction Add-Back 139 Asset – acquired January, 2009 – qualified restaurant property –
Untaxed foreign earnings and profits are repatriated dividends that purchase price $120,000. This normally would have had a 39-year
need to be reported when filing state taxes. Individuals should add recovery period; IRC Sec. 168 allows for a 15-year recovery period.
back the deduction taken on federal Form 965, Line 17. For additional
information see Income Tax Information Bulletin #116 at www.in.gov/ Asset acquired Jan. 2009 Federal Add- Indiana
dor/files/reference/ib116.pdf. $120,000 purchase price Depreciation Back Depreciation
Qualified Preferred Stock 113 Year 1 (2009) 8,000 4,924 3,076
If an individual: Year 2 (2010) 8,000 4,924 3,076
• had losses from the sale or exchange of preferred stock in either Year 3 (2011) 8,000 4,924 3,076
Federal National Mortgage Association or Federal Home Loan Year 4 (2012) 8,000 4,924 3,076
Mortgage Corporation;
• treated the loss from the sale or exchange as ordinary income Year 5 (2013) 8,000 8,000
0
for federal income tax purposes in the year the loss had been Accumulated Depreciation 40,000 20,304
incurred; and Year 6 – 15 80,000 80,000
0
• had any amount previously added back that not been allowed as a Accumulated Depreciation 120,000 100,304
deduction, Year 16 – 38
0 0 0
the individual is permitted to continue deducting the loss not previously Accumulated Depreciation
allowed as a capital loss. However, the amount allowable as a capital loss Year 39 (or year of
0 -19,696 19,696
must be computed in accordance with federal limitations on allowable disposition) Add-back
capital losses. See IRC sections 1211 and 121 for further details on
federal limitations. Enter code 113 on Schedule 1 under line 6 if Tax year 2012 is the last year Grant reported an add-back until the
reporting this add-back. end of the recovery period. Had this asset been sold before being
fully depreciated, the catch-up modification would be reflected in the
Certain Discontinued Add-Backs: How and When to year of the sale. If this property is held through 2048 (the 39th year of
Report a Final Catch-Up Modification. depreciation), Grant will report a negative $19,696 catch-up add-back
on his 2048 state tax return.
Required add-backs for the following modifications have been
eliminated, effective Jan. 1, 2013: Enter the associated 3-digit code on Schedule 1 under line 6 if
• Motorsports Entertainment Complex, Code 130 reporting a final catch-up modification.
• Qualified Advance Mining Safety Equipment, Code 126
• Qualified Electric Utility Amortization, Code 135
• Qualified Environmental Remediation Costs, Code 121
• Qualified Leasehold Improvement Property, Code 129
Page 14 IT-40 Booklet 2022
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Schedule 2: Deductions Line 2 – Homeowner’s Residential Property Tax
Deduction
You may be able to take a deduction of up to $2,500 ($1,250 if married
Schedule 2: Deductions filing separately) of the Indiana property taxes (residential real estate
taxes) paid on your principal place of residence. Your “principal place
Line 1 – Renter’s Deduction of residence” is the place where you have your true, fixed home and
You may be able to take the renter’s deduction if: where you intend to return after being absent.
• You paid rent on your principal place of residence, and
• You rented a place that was subject to Indiana property tax. Note. Property tax paid for summer homes or vacation homes is not
deductible.
Your “principal place of residence” is the place where you have your true,
fixed, permanent home and where you intend to return after being absent. Important. You cannot claim this deduction for property tax paid in
2022 if you are claiming the Lake County residential income tax credit
If you rented a manufactured home or paid rent for your on Schedule 5, line 6.
manufactured home lot, you may claim the renter’s deduction if the
above requirements are met. Rent paid for summer homes or vacation How do I claim my deduction? Complete the information area on
homes is not deductible. Schedule 2, line 2. Enter the address of your principal residence where
the Indiana property tax was paid if it is different from the address on
You cannot claim the renter’s deduction if the rental property was not the front of the return. If you had more than one principal residence
subject to Indiana property tax. Examples of this type of property are: during the year, and you paid Indiana property tax on both residences,
• Government owned housing, list the additional residence on a separate piece of paper.
• Property owned by a nonprofit organization,
• Student housing, Example. Jamie and Ella each owned their own home; they married
• Property owned by a cooperative association, and in 2022. They sold both of their homes during the year and began
• Property located outside of Indiana. renting. They are eligible to claim a property tax deduction on the
combined property taxes paid on both homes if they are filing a joint
How do I report my deduction? First, complete the information area return (limited to $2,500 altogether).
by entering: • Enter the number of months you lived there. If you claim more
• The address where rented if it’s different from the address on the than one residence, enter the number of months lived at the other
front of the return (leave blank if it is not different), residence(s) on a separate sheet of paper.
• The landlord’s name and address, • Enter the amount of Indiana property tax paid. If you lived in
• The total amount of rent paid, and more than one residence during the year, enter the combined
• The number of months you lived there. amount of Indiana property tax paid on all principal residences.
• Enter the smaller of $2,500 ($1,250 if married filing separately) or
If you moved during the year or had more than one landlord, you the amount of Indiana property tax paid.
must list the same information for each place that you rented. Enclose
additional pages if necessary. No double benefit allowed. If any portion of property taxes paid
on your principal residence was deducted as an expense on federal
How much rent can I deduct? You can deduct up to $3,000 ($1,500 if Schedule C, E or F, then do not deduct that amount on this line.
married filing separately) or the amount of rent paid, whichever is less.
Example. Jean paid $1,200 in Indiana property tax on her home. She
Example. Emily paid $4,800 in rent on her principal place of residence. used one room of her home for her business, and deducted $200
She will claim a $3,000 renter’s deduction. Indiana property tax as an expense on her federal Schedule C. Jean
is allowed a deduction of $1,000 ($1,200 minus the $200 deduction
Example. Bill paid $400 rent for his first apartment. He moved to already taken on federal Schedule C).
another location during the year and paid $2,800 rent for the rest of
the year. His deduction will be limited to $3,000, even though he paid How do I find out how much I paid in Indiana property tax
$3,200 altogether. on my principal residence? Indiana counties send statements to
homeowners showing how much property tax is due on their property.
Important. Keep copies of your rental receipts, landlord identifying Add together the 2022 spring and fall installments, if you paid both of
information and lease agreements as DOR can require you to provide them. If you received just one installment statement this year for your
this information. 2022 property taxes, use the amount paid for that installment.
For more information about this deduction, see Income Tax Sometimes mortgage companies pay the Indiana property tax from an
Information Bulletin #38 at www.in.gov/dor/files/reference/ib38.pdf. escrow account. If your mortgage company pays it, they should send
you a Form 1098 (or its equivalent) showing the amount of property
tax paid. If you cannot locate the information, contact your local
county treasurer’s office or your mortgage company.
IT-40 Booklet 2022 Page 15
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Schedule 2: Deductions Continued 1. Military Service Deduction (including the National Guard
and reserve component of the armed forces)
Important. You must maintain copies of proof that you paid Individuals with military pay from active duty, National Guard,
your Indiana property tax as DOR can require you to provide this and/or the reserve component of the armed forces, may be eligible
information. This could include the Form 1098, the property tax to deduct up to $5,000 of that income. See the Military Service
statement from your local assessor’s office, cancelled checks, etc. Deduction below to find out if you qualify for this deduction.
Line 3 – State Tax Refund Reported on Federal Return 2. Military Retirement Income and/or Survivor’s Benefits
If you entered a state tax refund amount on federal Schedule 1, line 1, Deduction
then enter that amount here. Individuals with military retirement income and/or survivor’s
benefits may be eligible to deduct those benefits. See the
Line 4 – Interest on U.S. Government Obligations Military Retirement Income and/or Survivor’s Benefits Deduction
Deduction information on page 20 to see if you qualify.
If the amount on line 1 of Form IT-40 includes interest income, you
may be able to take a deduction. If any part of your interest income 3. National Guard and Reserve Component Members
included on line 1 is from a direct obligation of the U.S. government, Deduction
you can deduct this amount. This deduction is available for qualified military income received
after your Indiana National Guard unit is federalized or your
Examples of U.S. government obligations include U.S. savings bonds, reserve component was mobilized and deployed for full-time
U.S. Treasury bills and U.S. government certificates. This interest is service. See the National Guard and Reserve Component Members
usually reported on federal Schedule B. Deduction on page 21 to see if you qualify for this deduction.
Interest income reported from a trust, estate, partnership or S Line 7 – Military Service Deduction (including the
corporation that is from U.S. government obligations should also be National Guard and reserve component of the armed forces)
deducted on this line. Important. The military service deduction and the military retirement
income and/or survivor’s benefits deduction are reported in two
Note. When certain U.S. savings bonds are redeemed to pay expenses different places.
for higher education, the interest may be excluded from federal • You (and/or your spouse, if married filing jointly and both
adjusted gross income. Therefore, do not enter any interest from qualify) will report your active, National Guard and/or reserve
U.S. savings bonds that is shown on your federal Schedule B, line 3 military service income deduction here.
(because it has already been excluded from income). • You (and/or your spouse, if married filing jointly and both
qualify) will report your military retirement income and/or
For more information about this deduction see Income Tax survivor’s benefits deduction on Schedule 2 under line 11, Other
Information Bulletin #19 at www.in.gov/dor/files/reference/ib19.pdf. Deductions. See the instructions for Military Retirement Income
and Survivor’s Benefits Deduction on page 20.
Lines 5 and 6 – Taxable Social Security and/or
Railroad Retirement Benefits Deduction The income on line 1 of Form IT-40 may include military pay from
Indiana does not tax Social Security income or the railroad retirement active duty, National Guard, and/or the reserve component of the armed
benefits that are issued by the U.S. Railroad Retirement Board. forces (reserve). If it does, you may be eligible to take this deduction.
To figure your deduction: The deduction will be the actual amount of your active duty, National
• Enter the amount from federal Form 1040/1040-SR, line 6b, on Guard, and/or reserve military income or $5,000, whichever is less.
Indiana’s Schedule 2, line 5. If both you and your spouse received active, National Guard, and/
• If you have included railroad retirement benefits that are issued or reserve military income, you may each claim the deduction for a
by the U.S. Railroad Retirement Board on line 5b of your federal maximum of $10,000 (up to $5,000 each).
Form 1040/1040-SR, then enter that amount on Indiana’s
Schedule 2, line 6. Example 1. Louis earned $25,000 from active service in the Army.
Brooklynn, his wife, earned $2,640 from the Indiana National Guard.
Important. Do not enter any other types of pension or retirement Louis is eligible for the maximum $5,000 deduction; Brooklynn is
income on these lines. eligible for a $2,640 deduction.
Note. See the Railroad Unemployment and Sickness Benefits deduction *Note. If you served in the reserve or the Indiana National Guard during
instructions on page 22 if you have received unemployment and/or the tax year, and you were deployed and mobilized for full-time service, or
sickness benefits from the Railroad Retirement Board. during the period your Indiana National Guard unit was federalized, then
you may be eligible to claim the National Guard and Reserve Component
A Word About the Three Military Income Deductions Members Deduction. See instructions for this deduction on page 21.
Military income recipients may be eligible to claim one or more of the
three deductions based on the type of income/benefits they get. Example 2. Alec earned $1,504 from his service in the National Guard.
His unit was federalized in September of the year; he earned $6,200 after
Page 16 IT-40 Booklet 2022
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Schedule 2: Deductions Continued of instructional service in a home setting to your dependent child who
is enrolled in a school corporation or a charter school.
being federalized. Alec is eligible to claim two deductions based on the
income he earned. First, he will claim a $1,504 military service deduction A “private elementary or high school education program” means
on his Schedule 2, Line 7. Second, he will claim the full $6,200 income attendance at a nonpublic school (including a private school, a
earned after his unit was federalized, on Line 11, using code #621. parochial school and a homeschool) in Indiana that satisfies a child’s
obligation for compulsory attendance at a school.
Military income earned while in a combat zone is not taxable on your
federal or state income tax returns. Since Indiana is not taxing this The obligation for “compulsory attendance” means a child must be in
income, your combat zone income is not eligible for a deduction. attendance in a school (public and/or private) for a minimum of 180
days in a calendar year.
Example 3. Jim was on active duty the first month of the year. He was
stationed in a combat zone the rest of the year. His military W-2 form Note. No deduction will be available based on a child who is enrolled
shows the first month’s regular military wage income of $1,250 in Box in school for a period of less than 180 days in a calendar year.
1. Only $1,250 of his income is taxed on his federal (and Indiana) tax
returns. Jim should claim a $1,250 military deduction (the lesser of the Figure your deduction. If you made an unreimbursed education
income being taxed [$1,250] or $5,000). expenditure during the year your deduction is:
• $1,000; multiplied by
Example 4. Mikayla is a member of the National Guard. She earned • the number of qualified dependent children for whom you made
$7,250 from service in the National Guard from Jan. 1 through Oct. education expenditures.
31. Her guard unit was federalized for full-time service on Nov. 1, and
she earned an additional $4,800 through Dec. 31 of the year. Example. Greg and Constance have three children ages 7, 9 and 11. The
two oldest children attend a private school. The youngest child attends
Mikayla is eligible to claim both the Military Service Deduction and the the neighborhood public school. The parents purchased schoolbooks
National Guard and Reserve Component Members Deduction. for all three children. They will be eligible for a $2,000 deduction (the
• First, she will claim the $5,000 maximum military service youngest does not qualify as he attends a public school).
deduction on Schedule 2, line 7, based on the $7,250 income
earned through Oct. 31. Note. A qualifying child may be claimed for this deduction only
• Second, she will claim the National Guard and Reserve once per year. For example, if a husband and wife are married and
Components Deduction of $4,800 (full amount of income earned filing separately, whichever parent is eligible to claim the child as a
after her unit was federalized) under line 11. dependent for exemption purposes is eligible to claim this deduction.
Important. You must enclose your military W-2 form(s) if you are For more information about this deduction, see Income Tax
claiming this deduction. Information Bulletin #107 at www.in.gov/dor/files/reference/ib107.pdf.
For more information about this deduction see Income Tax Line 9 – Indiana Net Operating Loss Deduction
Information Bulletin #27 at www.in.gov/dor/files/reference/ib27.pdf. You may take a deduction for any Indiana net operating losses
allowable. (This will be a net operating loss deduction from an earlier
Line 8 – Private School/Homeschool Deduction year(s) carried forward to 2022).
You may be eligible for a deduction based on education expenditures
paid for each dependent child who is enrolled in a private school or is Complete Schedule IT-40NOL to determine the amount available to
homeschooled. be deducted this year. Make sure to enter the amount you are eligible
to deduct as a positive figure.
Dependent Child Qualifications
• Your dependent child must be eligible to receive a free elementary or Note. It is possible to have an Indiana NOL without also having a
high school education (K-12 range) in an Indiana school corporation; federal NOL. See Schedule IT-40NOL, which can be found at www.
• You must be eligible to claim the child as a dependent on your in.gov/dor/tax-forms/2022-individual-income-tax-forms, for more
federal tax return; and information. For years prior to 2022, the modifications required to
• The child must be your natural or adopted child or, if not, you compute an Indiana NOL may have changed after publication of
must have been awarded custody of the child in a court proceeding the IT-40NOL for the prior year. See the instructions for a list of
making you the court appointed guardian or custodian of the child. modifications required for each year and, if necessary, revise the IT-
40NOL for changes in modifications.
Education expenditure. This refers to any expenditures made in
connection with enrollment, attendance, or participation of your Enclose Schedule A from federal Form 1045 and a completed Indiana
dependent child in a private elementary or high school education Schedule IT-40NOL when claiming this deduction. If your Schedule A
program. The term includes tuition, fees, computer software, textbooks, from federal Form 1045 included itemized deductions to increase the
workbooks, curricula, school supplies (other than personal computers), federal net operating loss, enclose a pro forma copy of the Schedule A
and other written materials used primarily for academic instruction or computing the net operating loss without the itemized deductions.
for academic tutoring, or both. The term does not include the delivery
IT-40 Booklet 2022 Page 17
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Schedule 2: Deductions Continued Here is how to figure your deduction.
Lesser of the taxable amount of the annuity or $16,000 ............. $6,000
Also, maintain with your records a copy of the federal Form Total of Social Security/tier 1 & tier 2 Railroad
1040/1040-SR from the loss year as DOR can require you to provide Retirement income .......................................................................... - $1,200
this information at a later date. Allowable deduction ...................................................................... $4,800
Line 10 – Nontaxable Portion of Unemployment If you receive a civil service annuity both for yourself and as a
Compensation surviving spouse, the combined deduction cannot exceed $16,000.
You may be eligible for a deduction if you reported unemployment
compensation on your federal income tax return. Complete the Example. Matthew and Claire, both age 68, file a joint federal and state
worksheet on page 18 to see if you are eligible. Make sure to enclose income tax return. They each receive a civil service annuity and Social
your 1099G(s) if you claim the deduction. Security income.
Important. Do not include any unemployment compensation issued Matthew’s taxable civil service annuity is $13,700; he also received
by the U.S. Railroad Retirement Board on line 1 of the worksheet. $17,500 in Social Security income. Since the Social Security income
Instead, see the instructions for the Railroad Unemployment and he received is greater than the taxable amount of his annuity, he is not
Sickness Benefits Deduction on page 22 for more information. eligible for a deduction.
Line 11 – Other Deductions Claire’s taxable civil service annuity is $21,900; she also received
Each of the following deductions has been assigned a 3-digit code $6,300 in Social Security income.
number. When claiming the deduction on Schedule 2 under line 11,
write the name of the deduction, the three-digit code number and the Here is how to figure Claire’s deduction.
amount claimed. Lesser of the taxable amount of the annuity or $16,000 ............. $16,000
Claire’s Social Security income ...................................................... - $6,300
Civil Service Annuity Deduction 601 Allowable deduction ...................................................................... $9,700
The income on line 1 of Form IT-40 may include federal civil service
annuity income. If it does, you may be eligible to take a deduction if Surviving Spouse
you were at least 62 years of age by the end of the tax year and/or a A surviving spouse may be eligible to claim this deduction. There is no
surviving spouse of a civil service annuitant. age requirement for the surviving spouse.
For each civil service annuitant, the deduction is limited to: To figure the deduction, begin with the taxable amount of civil service
• The lesser of the amount of taxable civil service annuity income annuity income or $16,000, whichever is less. Subtract from that
included in federal adjusted gross income or $16,000, amount any Social Security income and tier 1 and tier 2 Railroad
• Less all amounts of Social Security income and tier 1 and tier 2 Retirement income (issued by the Railroad Retirement Board) the
Railroad Retirement income (issued by the Railroad Retirement surviving spouse received.
Board) received by the civil service annuitant.
Example. Marie is a surviving spouse. The taxable amount of her civil
Example. The taxable amount of your civil service annuity is $6,000. service annuity is $14,500, and she received $1,200 in Social Security
You received $1,200 in Social Security income. You are age 67. income.
Unemployment Compensation Worksheet
Note: If you were married but filing separately, and you lived with your spouse at any time during the year, enter -0- on line 3 of the worksheet.
However, if you were married but filing separately, and lived apart from your spouse the entire year, enter $12,000 on line 3.
1. Unemployment compensation included on IT-40, line 1 (do not include any unemployment
compensation issued by the Railroad Retirement Board - see instructions) ............................................... 1
2. Federal adjusted gross income from federal Form 1040, line 11 ................................................................ 2
3. Enter $12,000 if single, or $18,000 if married filing a joint return ................................................................ 3
4. Subtract line 3 from line 2. If zero or less, enter -0- .................................................................................... 4
5. Enter one-half of the amount on line 4 (divide line 4 by the number 2) ....................................................... 5
6. Taxable unemployment compensation for Indiana purposes: enter the amount from either line 1
or line 5, whichever is smaller ..................................................................................................................... 6
7. Subtract line 6 from line 1. Carry this amount to Schedule 2, line 10.......................................................... 7
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Schedule 2: Deductions Continued • was paid by your employer, and
• you would have been permitted to deduct if federal law did not
Here is how to figure Marie’s deduction. disallow that deduction.
Lesser of the taxable amount of the annuity or $16,000 ............. $14,500
Marie’s Social Security income ...................................................... - $1,200 Complete Worksheet 4-1 provided in IRS Publication 970 to
Allowable deduction ...................................................................... $13,300 determine the amount (if any) of additional interest allowable for
Indiana purposes, but not in excess of $2,500 total. When completing
You must maintain Form CSA 1099-R with your records as DOR can Worksheet 4-1, do not add back amounts required to be added to
require you to provide it at a later date. Indiana adjusted gross income using Code 148. This deduction cannot
exceed the amount you are required to add back using Code 148.
For more information about this deduction see Income Tax
Information Bulletin #6 at www.in.gov/dor/files/reference/ib06.pdf. Enterprise Zone Employee Deduction 603
Enter code 601 on Schedule 2 under line 11 if claiming this deduction. Certain areas within Indiana have been designated as enterprise zones.
Enterprise zones are established to encourage investment and job
COVID-related Employee Retention Credit Disallowed growth in distressed urban areas.
Expenses Deduction 634
If you had a deduction that was disallowed for federal purposes Enterprise zones have been established in areas of certain cities/
because an employer claimed a federal COVID-related employee locations. Use this website to look up contact information for a
retention credit, deduct the amount that was: particular enterprise zone: www.aiez.org/#mem
• disallowed for federal purposes; and
• that otherwise would have been allowable in determining Indiana Your employer will provide Form IT-40QEC to you if you are eligible
adjusted gross income. to claim this deduction. The amount of the deduction is one-half of
the earned income shown on Form IT-40QEC or $7,500, whichever is
Do not deduct any amounts for amounts disallowed for non-COVID less. If you and your spouse both have received Form IT-40QEC, you
related employee retention credits such as disaster-related employee may each take this deduction for a combined maximum of $15,000
retention credits. (no more than $7,500 per qualifying person).
For 2022, this should only be deducted if the deduction is derived Enter code 603 on Schedule 2 under line 11 if claiming this deduction.
from a pass through entity that has a fiscal year beginning in 2021.
Government or Civic Group Capital Contribution
Disability Retirement Deduction 602 Deduction 633
To take this deduction you must have been: A deduction is available for certain capital contributions made by a
• Permanently and totally disabled at the time of retirement, government or civic group. Deduct any eligible contributions as listed
• Retired on disability before the end of the tax year, and on a Schedule K-1 you received from an S corporation, or from an
• Received disability retirement income during the tax year. estate or trust that owns a portion of an S corporation AND through
which you are receiving a distribution. You must maintain a copy of
If you meet these qualifications, you must complete Schedule IT-2440 the Schedule K-1(s) with your records as DOR can require you to
and have it signed by your doctor to claim this deduction. You must provide it at a later date.
maintain the completed Schedule IT-2440 with your records as DOR
can require you to provide it at a later date. Enter code 633 on Schedule 2 under line 11 if claiming this deduction.
For more information about this deduction see Income Tax Human Services Deduction 605
Information Bulletin #70 at www.in.gov/dor/files/reference/ib70.pdf The human services deduction is intended to eliminate any individual
and Schedule IT-2440 at www.in.gov/dor/tax-forms/2022-individual- income tax imposed on Medicaid recipients who are living in a:
income-tax-forms. • Hospital,
• Skilled nursing facility,
This deduction is limited to a maximum of $5,200 per qualifying • Intermediate care facility,
individual. • Licensed county home,
• Licensed boarding or residential home, or
Note. Social Security disability income does not qualify for this • Certified Christian Science facility.*
deduction because Indiana does not tax this income.
The goal of the human services tax deduction is to reduce the affected
Enter code 602 on Schedule 2 under line 11 if claiming this deduction. individual’s adjusted gross income tax liability to zero (-0-).
Employer Student Loan Payment Interest *An eligible Christian Science facility must be listed with and certified
Deduction 637 by the Commission for Accreditation of Christian Science Nursing
If you are required to add back employer-paid student loan payment Organizations/Facilities, Inc.
using Code 148, you are permitted to deduct the amount of student
loan interest that:
IT-40 Booklet 2022 Page 19
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Schedule 2: Deductions Continued sell the bond, do not deduct any amounts for which the bond is sold in
excess of your purchase price. See IC 6-8-5-1 for further information
Generally, the deduction should not be used in conjunction with most regarding the deduction.
tax credits in order to create a refund. If you are a Medicaid recipient
and live in one of the facilities listed above, to determine whether you Indiana Partnership Long-Term Care Policy Premiums
are eligible for the deduction you must first prepare your tax return Deduction 608
without claiming a human services deduction. Generally, if a refund You may take a deduction for the amount of premiums paid for
is due, you are not eligible for a deduction. File your return without Indiana partnership long-term care insurance. If you are a married
claiming the deduction and a refund will be issued. However, if an individual filing separately, you may not claim a deduction for
amount is due, you are eligible to use a deduction. amounts paid by or on behalf of your spouse.
Enter code 605 on Schedule 2 under line 11 if claiming this deduction. Important. The Indiana partnership policy will have the following box
of information on the outline of coverage, the application or on the
Indiana Education Scholarship Account Deduction 635 front page of the policy.
A deduction is available if you received an annual grant amount
distributed to your Indiana education scholarship account that is used
This policy qualifies under the Indiana Long-Term Care program for
to pay for qualified expenses. See IC 20-51.5-2-9 for a list of qualified
Medicaid Asset Protection. This policy may provide benefits in excess of
expenses. Do not deduct any grants that are not included in your
the asset protection provided in the Indiana Long-Term Care program.
federal gross income. Also, if the grant is used to pay for items other
than qualified expenses, do not deduct the amount of those payments.
If the information shown in the box above is not located in a box on
your policy, you do not have a qualifying policy, and are not eligible
Indiana Enrichment Scholarship Account
to take this deduction. The deduction is the amount of premiums paid
Deduction 638
during the year on the policy for the taxpayer and/or spouse.
A deduction is available if you received an annual grant amount
distributed to your Indiana enrichment scholarship account that is
No double benefit allowed. Certain self-employed individuals will
used to pay for qualified expenses. Qualified expenses are enrichment
claim these premiums as a deduction on federal Form 1040/1040-SR.
materials, activities, or programs approved by the Indiana Department
The Indiana deduction will be the actual amount of these premiums
of Education to improve student proficiency in math or reading. Do
paid, minus any amount of these already reported on federal Form
not deduct any grants that are not included in your federal gross
1040/1040-SR.
income. Also, if the grant is used to pay for items other than qualified
expenses, do not deduct the amount of those payments.
More information about this program is available at www.in.gov/iltcp.
Indiana Lottery Winnings Annuity Deduction 629
Important. Keep a copy of the premium statements as DOR can
You may be eligible to deduct annuity payments received from a
require you to provide this information. Enter code 608 on Schedule 2
winning Hoosier Lottery ticket for a lottery held prior to July 1, 2002.
under line 11 if claiming this deduction.
This deduction applies only to prizes won from the Hoosier Lottery
Commission; proceeds from other state lotteries or from other
Infrastructure Fund Gift Deduction 631
gambling sources, such as casinos, are not deductible. In addition,
A deduction is available for certain contributions made to a regional
proceeds from winning Hoosier Lottery tickets for lotteries held after
development infrastructure fund. You should keep detailed records of
June 30, 2002, are not deductible.
the contribution as DOR can require you to provide this information
at a later date.
Example. Jennifer won $2,000,000 playing the Hoosier Lottery with
a ticket purchased in June of 2002. She elected to receive annual
Enter code 631 on Schedule 2 under line 11 if claiming this deduction.
installment payments of $100,000. Since Jennifer reported her
$100,000 annuity payment on her federal tax return this year, she is
Military Retirement Income and/or Survivor’s Benefits
eligible to claim a $100,000 deduction.
Deduction 632
The income on line 1 of Form IT-40 may include military retirement
Note. Individuals or entities that have purchased Hoosier Lottery
income and/or survivor’s benefits. If it does, you (and/or your spouse,
prizes from a winning ticket holder for valuable consideration are not
if married filing jointly and both qualify) may be eligible to take this
eligible for this deduction.
deduction. For 2022 and later, the deduction is equal to the entire
amount of military retirement income and/or survivor’s benefits.
Enter code 629 on Schedule 2 under line 11 if claiming this deduction.
Important. You must enclose your military retirement income
Indiana-only Tax-exempt Bonds Deduction 636
statement(s) and/or survivor’s benefit statement(s) with the tax return
If you had interest from a bond issued by or in the name of certain
if you are claiming this deduction.
Indiana government subdivisions or entities or amounts received
upon redemption or maturity of the bond, deduct any interest or other
For more information about this deduction see Income Tax
income included in federal gross income. Do not deduct any bond
Information Bulletin #6 at www.in.gov/dor/files/reference/ib06.pdf.
interest that is excluded from federal gross income. In addition, if you
Page 20 IT-40 Booklet 2022
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Schedule 2: Deductions Continued What is Qualified Military Income?
Qualified military income is military wages paid to a member of a
National Guard and Reserve Component Members reserve component of the armed forces or the Indiana National Guard
Deduction 621 for the period during the member’s full-time service in a reserve
Regular military income from being in the reserves and Indiana component of the armed forces or the period when Indiana National
National Guard is eligible for the Military Service Deduction. See Guard unit is federalized.
instructions for that deduction beginning on page 16. Do not claim
a deduction for this kind of income here. Note. You cannot claim both this deduction and the Military Service
Deduction (see page 16) based on the same income. See the
This deduction is available for qualified military income* received following example.
during the period:
• you were mobilized 1and deployed 2for full-time service, or
Example. Brandon is a member of the Indiana National Guard.
• your Indiana National Guard unit is federalized. • From January through Oct. 15, Brandon earned $6,000 from the
guard.
1“Mobilization” includes assembling and organizing personnel • His unit was federalized on Oct. 16. He earned $7,000 from that
and material for active duty military forces, activating the Reserve point through Dec. 1.
Component (including federalizing the National Guard), extending • His unit was assigned to a combat zone on Dec. 2, and he earned
terms of service, surging and mobilizing the industrial base and $3,000 from then until the end of the year.
training bases, and bringing the Armed Forces of the United States to • Brandon’s military W-2 shows $13,000 in Box 1, Wages, tips, other
a state of readiness for war or other national emergency. compensation (the combat zone income is not included in Box 1
because it is not taxable).
*Servicemembers serving on full time orders in an Active Guard and
Reserve Program (AGR) are not considered mobilized for purposes of Brandon is eligible for both Indiana military deductions.
claiming their income as qualified military income. • First, he will claim the $5,000 maximum military service
deduction on Schedule 2, line 7, based on the $6,000 income
2“Deployment” is the relocation of forces and material to desired earned through Oct. 15.
operational areas. Deployment encompasses all activities from origin • Second, he will claim the National Guard and reserve components
or home station through destination, specifically including intra- deduction of $7,000 (full amount of income earned after his unit
continental U.S., inter-theater, and intra-theater movement legs, was federalized) under line 11.
staging, and holding areas.
Note. He will not deduct the $3,000 income earned while stationed in
If you meet the qualifications listed below, you will want to deduct that a combat zone because it was not taxed to begin with.
qualified military income here (unlike the Military Service Deduction,
there is no ceiling on the amount of this kind of income which is Military withholding statements must be attached to the tax return
eligible for a deduction). when claiming this deduction.
Who is Eligible? Note. DOR may request copies of your military orders to help
You must be a member of the reserve components of: determine eligibility.
• the Army;
• the Navy; Get Income Tax Information Bulletin #27 at www.in.gov/dor/files/
• the Air Force; reference/ib27.pdf for more information concerning this deduction.
• the Coast Guard;
• the Marine Corps; or Enter code 621 on Schedule 2 under line 11 if claiming this deduction.
• the Merchant Marine.
Olympic/Paralympic Medal Winners Deduction 627
Or, a member of: You are eligible for a deduction if you won a gold, silver and/or
• the Indiana Army National Guard; or bronze medal from participating in the Olympic/Paralympic games.
• the Indiana Air National Guard. The deduction equals the value of the medal(s) won plus the amount
of income received during the taxable year from the United States
What is Eligible to be Deducted? Olympic Committee as prize money for winning the Olympic
If you are eligible, your deduction is the qualified military income* medal(s). If these amounts were previously deducted or excluded in
received during the period you were deployed and mobilized for full determining your federal adjusted gross income, you are not permitted
time service, or during the period your Indiana National Guard unit this deduction for the amounts that were excluded or deducted in
was federalized. determining your federal adjusted gross income. This deduction may
be claimed only in the tax year in which the medal was won.
*Military income received due to service in a combat zone is not
taxable on your federal or state income tax returns. Since Indiana is Enter code 627 on Schedule 2 under line 11 if claiming this deduction.
not taxing this income, your combat zone income is not eligible for
this deduction.
IT-40 Booklet 2022 Page 21
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Schedule 2: Deductions Continued Example 1. Ryan was a full-year Indiana resident in 2021, and received
$1,700 unemployment compensation that year. He reported the full
Qualified Patents Income Exemption Deduction 622 amount on his 2021 federal and Indiana income tax returns. In March
Some of the income from qualified patents included in federal taxable of 2022 Ryan found out he had to repay $345 of that compensation; he
income may be exempt from Indiana adjusted gross income tax. A repaid it that summer. For 2022 federal tax purposes he is eligible to
qualified patent is a utility patent or a plant patent issued after Dec. claim an itemized deduction* based on the $345 amount repaid. Ryan
31, 2007, for an invention resulting from a development process is eligible to claim the $345 amount as a repayment of previously taxed
conducted in Indiana. The term does not include a design patent. income as a deduction on his 2022 state tax return.
You must maintain the completed Schedule IN-PAT with your records as *In this example Ryan is not required to claim itemized deductions
DOR can require you to provide it at a later date. You may get Schedule when figuring his federal taxable income; he may have opted to use the
IN-PAT at www.in.gov/dor/tax-forms/2022-individual-income-tax-forms. standard deduction instead. Regardless, he is still eligible to claim the
deduction on his state tax return.
For more information about this deduction see Income Tax Information
Bulletin #104 at www.in.gov/dor/files/reference/ib104.pdf. Note. An adjustment will need to be made if an unemployment
compensation deduction was claimed on the return in the year the
Enter code 622 on Schedule 2 under line 11 if claiming this deduction. income was reported. To do this, reduce the amount previously
reported by the amount repaid; refigure the deduction based on the
Railroad Unemployment and Sickness Benefits reduced amount. Subtract the difference from the repayment amount
Deduction 624 to be deducted.
Benefits issued by the U.S. Railroad Retirement Board are not taxable
by Indiana. Example 1, continued. Ryan claimed a $73 unemployment
compensation deduction on his 2021 state tax return. He refigured
Deduct unemployment and/or sick pay benefits issued by the U.S. the deduction based on the reduced $1,355 compensation ($1,700 -
Railroad Retirement Board on this line if: $345), which reduced the deduction by $15. Ryan will report the $330
• You included these benefits as taxable income on your federal tax net difference ($345 repayment minus the $15 reduced deduction
return, and amount) as the repayment of previously taxed income deduction.
• You did not already deduct these benefits on Schedule 2, lines 5
and/or 6. Important. While no corresponding state credit for the repayment of
previously taxed income is available, a deduction based on the amount
Do not include any supplemental sick pay benefits on this line. repaid is.
Make sure to keep the statements (such as Form 1099G) issued by the Example 2. In 2022 Cynthia repaid $3,400 of income originally reported
U.S. Railroad Retirement Board as DOR may request them at a later date. on her 2021 federal and Indiana state tax returns. She claimed a credit
on her 2022 federal tax return based on the $3,400 amount repaid.
Enter code 624 on Schedule 2 under line 11 if claiming this deduction. Cynthia is eligible to claim the $3,400 amount as a deduction.
Recovery of Deductions 616 Important. Indiana does not tax Social Security income. Therefore,
You are not eligible for this deduction if you did not complete the any amount of Social Security income repaid in a subsequent year is
“other income” line on Schedule 1 of your federal Form 1040/1040-SR. not eligible for a deduction (since Indiana has not previously taxed
this income).
Generally, Indiana does not allow you to claim itemized deductions
from federal Schedule A. However, if you reported recovered itemized Note. Keep a copy of your records detailing the required repayment as
deductions as “other income” on line 8 of your federal Schedule 1, DOR can require you to provide this information at a later date.
enter that amount on this line. A recovery is a return of an amount you
deducted in an earlier year. The most common recoveries are refunds Enter code 630 on Schedule 2 under line 11 if claiming this deduction.
(see Indiana’s Schedule 2, line 3), reimbursements and rebates of
deductions previously itemized on federal Schedule A.
Exemptions
Enter code 616 on Schedule 2 under line 11 if claiming this deduction. Exemptions may be claimed on the Indiana return. Categories include
exemptions for:
Repayment of Previously Taxed Income Deduction 630 1. You, and your spouse, if married filing jointly
You may be eligible to claim a deduction for the repayment of 2. Certain dependents
previously taxed income, also known as “claim of right,” if: 3. Certain dependent children (additional)
• You reported the income to Indiana in a previous year, 4. Certain adopted children
• You repaid some or all of it this year, and 5. Age 65 or older and/or blind
• For federal tax purposes, you are eligible to: 6. Additional age 65 or older (based on income)
ο claim the repayment as an itemized deduction, or
ο claim a credit based on the repayment amount.
Page 22 IT-40 Booklet 2022
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Schedule 3: Exemptions Do you have a child who meets the conditions to be your qualifying child?
While you will need to complete Schedule 3 to list all of your Yes. Go to Step 2.
exemptions, you will also need to complete Schedule IN-DEP if No. Go to Step 3.
claiming any dependents. If you are claiming any adopted dependents,
you will also need to complete Schedule IN-DEP-A. Step 2 Is Your Qualifying Child Your Dependent?
1. Was the child a U.S. citizen, U.S. national, U.S. resident alien, or
a resident of Canada or Mexico? (See Income Tax Information
Schedule 3: Exemptions Bulletin #117 for the definition of a U.S. national or U.S. resident
Line-by-line instructions. alien. If the child was adopted, see Exception to citizen test, later.)
Line 1 – Exemptions for taxpayer, spouse (if married Yes. Continue.
filing jointly) No. STOP. You cannot claim this child as a dependent.
If you are married filing jointly, enter $2,000 on this line. All other
filers* should enter $1,000 on this line. 2. Was the child married?
*Important. Enter $1,000 on this line even if you are claimed on Yes. See Married Person, later.
someone else’s tax return, such as a parent or guardian. No. Continue.
Lines 2 and 3 – Exemptions for dependents; 3. Could you, or your spouse if filing jointly, be claimed as a
Additional exemptions for certain dependent children dependent on someone else’s tax return? See Steps 1 and 2.
Read the following information to see if you are eligible to claim any
dependents. If you are, complete Schedule IN-DEP after reviewing Yes. STOP. You cannot claim any dependents.
these steps. No. You can claim this child as a dependent. See Schedule IN-DEP
• Step 1 Do You Have a Qualifying Child? instructions below.
• Step 2 Is Your Qualifying Child Your Dependent?
• Step 3 Is Your Qualifying Relative Your Dependent? Step 3 Is Your Qualifying Relative Your Dependent?
A qualifying relative is a person who is your…
Step 1 Do You Have a Qualifying Child?
A qualifying child is a child who is your… • Son, daughter, stepchild, foster child, or a descendant of any of
them (for example, your grandchild), or
Son, daughter, stepchild, foster child, brother, sister, stepbrother, • Brother, sister, half brother, half sister, half brother, half sister, or a son
stepsister, half brother, half sister, or a descendant of any of them (for or daughter of any of them (for example, your niece, or nephew), or
example, your grandchild, niece, or nephew) • Father, mother, or an ancestor of sibling of either of them (for
example, your grandmother, grandfather, aunt or uncle), or
AND, was… • Any other person (other than your spouse) who lived with you
all of the year as a member of your household if your relationship
• Under age 19 at the end of the year and younger than you (or your does not violate local law. If the person did not live with you for
spouse, if filing jointly), or the required time, see Exception to time lived with you, later.
• Under age 24 at the end of the year, a student (defined later), and
younger than you (or your spouse, if filing jointly), or AND, who…
• Any age and permanently and totally disabled (defined later)
• Was not a qualifying child (see Step 1) of any taxpayer during the
AND, who… year. For this purpose, a person isn’t a taxpayer if he or she isn’t
required to file a U.S. income tax return and either doesn’t file
• Didn’t provide over half of his or her own support for the year such a return or files only to get a refund of withheld income tax
(see Income Tax Information Bulletin #117), or estimated tax paid. See Income Tax Information Bulletin #117
for details and examples.
• Is not filing a joint return for the year, or is filing a joint return • Had gross income of less than $4,400 during the year. If the person
for the year only as a claim for refund of withheld income tax or was permanently and totally disabled, see Exception to gross income
estimated tax paid (see Income Tax Information Bulletin #117 for test, later.
details and examples),
• Lived with you for more than half the year. If the child didn’t live with AND, for whom …
you for the required time, see Exception to time lived with you, later.
You provided over half of his or her support during the year. But see
Caution. If the child meets the conditions to be a qualifying child of any Children of divorced or separated parents, Multiple support agreements,
other person (other than your spouse if filing a joint return) for the year, or and Kidnapped child, later.
the child was married, see Qualifying child of more than one person, later.
IT-40 Booklet 2022 Page 23
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Schedule 3: Exemptions Continued
1. Does any person meet the conditions to be your qualifying relative? Schedule IN-DEP Instructions
You must complete and enclose Schedule IN-DEP if you are claiming
any dependents on lines 2 and/or 3 of Schedule 3.
Yes. Continue.
No. STOP. You cannot claim this person as a dependent.
Question 1. Did you answer “No” to STEP 2, question 3 above? If so, you
are eligible to claim the qualifying child (children) as a dependent. Read
2. Was your qualifying relative a U.S. citizen, a U.S. national, U.S. resident
the Lines 1 through 5 instructions below. If not, skip to Question 2 below.
alien, or a resident of Canada or Mexico? (See federal Publication
519 for the definition of a U.S. national or U.S. resident alien.) If your
Lines 1 through 5
qualifying relative was adopted, see Exception to citizen test, later.
For each qualified dependent child, enter his or her:
• First and last name in Box A and Box B.
Yes. Continue • Nine-digit Social Security number (SSN) in Box C.
No. STOP. You cannot claim this person as a dependent. • Date of birth in Box D.
3. Was your qualifying relative married?
See Additional Dependent Exemptions below to determine whether or
not to complete line E.
Yes. See Married person, later.
No. Continue.
Example 1. Cooper and Grace Doe are eligible to claim their daughter
Tatum as a dependent on Schedule IN-DEP. Here is how they will
4. Could you or your spouse if filing jointly, be claimed as a dependent
complete line 1:
on someone else’s tax return this year? See Steps 1 and 2.
Dep. First Name Dep. Last Name
Yes. STOP. You cannot claim any dependents. 1A Tatum 1B Doe
No. You can claim this person as a dependent. See Schedule IN-DEP
instructions below. Dependent’s SSN Dependent’s DOB
1C 123 45 6789 1D 06 01 2012
If you are eligible to claim one or more dependent from Step 2
and/or Step 3, complete Schedule IN-DEP. If one or more claimed Question 2. Did you answer “No” to STEP 3, question 4 above? If so,
dependent is adopted, see instructions for IN-DEP-A. you are eligible to claim the qualifying relative as a dependent.
Line 4 – Age 65 or Older or Blind For each qualified relative, enter his or her:
If you and/or your spouse (if filing a joint return) are age 65 or older, • First and last name in Box A and Box B.
you and/or your spouse can take an additional $1,000 exemption. If • Nine-digit Social Security number (SSN) in Box C.
you and/or your spouse (if filing a joint return) are legally blind, you • Date of birth in Box D.
and/or your spouse can take an additional $1,000 exemption. Place an
“X” in the boxes that apply to you and/or your spouse. Enter the total Example 2. Cooper and Grace Doe (see Example 1 above) are also
number of boxes marked on this line and multiply by $1,000. eligible to claim Grace’s grandmother, Irene Smith, who lives with
them, as a dependent. Here is how they will complete line 2:
Line 5 – Additional Exemption for Age 65 or Older
Dep. First Name Dep. Last Name
An additional $500 exemption is available for you and/or your spouse
(if filing a joint return) if you are age 65 or older and the amount on 2A Irene 2B Smith
Form IT-40, line 1, is less than $40,000 (or if you are married filing
separately and the amount on Form IT-40, line 1 is less than $20,000). Dependent’s SSN Dependent’s DOB
Place an “X” in the boxes that apply to you and/or your spouse. Enter 2C 987 65 4321 2D 10 15 1940
the total number of boxes marked on this line and multiply by $500.
Line 6
Line 6 - Additional Exemptions for Adopted Child Add the qualified dependents listed on lines 1 through 5, and enter the
If you are claiming additional exemptions for one or more qualifying total in Box 6. Then, enter this amount in the box on Schedule 3, line 2.
adopted children, enter the number of qualifying children listed on
Schedule IN-DEP-A. Do not enter the number of boxes marked for Additional Dependent Exemptions
parents. Read below to see if you are eligible to claim an additional dependent
exemption for a dependent child (children) listed on lines 1 through 5.
An additional $1,500 exemption is allowed for certain dependent
children. Carefully read the following Dependent child definition below
to see if you are eligible for this additional exemption(s).
Page 24 IT-40 Booklet 2022
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Schedule IN-DEP Instructions Continued
Dependent child definition. According to state statute, to be eligible Schedule IN-DEP-A Instructions
You must complete and enclose Schedule IN-DEP-A if you are claiming
for this exemption a dependent child must be a son, stepson, daughter,
any additional exemption for adopted children. These children are also
stepdaughter, foster child*, child for whom you are a legal guardian,
required to be listed on Schedule IN-DEP.
and/or your spouse’s child, if filing a joint return. He/she must be
either under the age of 19 by the end of the tax year, or be a full-time
To claim this exemption for an adopted child, the adoption of the child
student who is under the age of 24 by the end of the tax year.
must be finalized before the end of the taxable year.
*The foster child must have lived with you the entire year in order to
Lines 1 through 5
meet eligibility requirements for purposes of claiming the additional
For each adopted dependent, enter his or her:
dependent exemption. • First and last name in Box A and Box B
• Nine-digit Social Security number (SSN) in Box C
If any dependent included in Box 6 on this schedule also meets • Date of birth in Box D
the Dependent child definition above, place an “X” in box E on the • If the first listed taxpayer on the return is an adoptive parent of
line where the dependent is listed (see following example). Add the
the child, check Box E
number of box E’s containing an “X”. Enter that number in Box 7, • If the second listed taxpayer on the return is an adoptive parent of
which is located at the bottom of the schedule.
the child, check Box F
Example 3. Cooper and Grace Doe (see Example 1 above) are eligible
Note. An adopted child can only qualify for the additional adopted
to claim the additional dependent exemption for their daughter
child exemption if the child also meets the requirements for an
Tatum. They should enter an “X” on Line 1E.
additional child exemption on Schedule IN-DEP. If Box E on Schedule
Dep. First Name Dep. Last Name IN-DEP for the adopted child is not checked, the additional adopted
1A Tatum 1B Doe child dependent exemption also will be disallowed.
Dependent’s SSN Dependent’s DOB If both parents are adoptive parents of the child, only one additional
1C 123 45 6789 1D 06 01 2012 adopted child dependent deduction is permitted for that child.
This exemption may not be claimed by a non-adoptive parent (e.g., a
1E Additional dependent child exemption 1E X biological parent of child adopted by a stepparent) unless the adoptive
parent files a joint return with the non-adoptive parent.
Note. Not all dependent children are eligible for this additional
exemption. For instance, you may have included a grandson as a
If you are claiming more than five additional adopted child
dependent in Box 6. However, if he doesn’t meet the qualification of
exemptions, attach an additional Schedule IN-DEP-A. Include the
being a foster child or a child for whom you are a legal guardian, you
additional information to the total on the first schedule, Box 6, where
will not be able to claim the additional exemption for him on Line 7.
applicable.
Line 7
Add the number of any additional dependent child exemptions located
in boxes 1E through 5E. Enter the total in Box 7. Then, enter this Definitions and Special Rules for
amount in the box on Schedule 3, line 3. Dependents
Important.
Claiming more than five dependents • Various Internal Revenue Service (IRS) forms and publications
If you are claiming more than five dependents, attach an additional you may need can be found online at https://apps.irs.gov/app/
Schedule IN-DEP. Make sure to add the additional information to the picklist/list/formsInstructions.html.
totals on the first schedule, Boxes 6 and 7, where applicable. • Indiana’s Income Tax Information Bulletin #117 can be found
online at https://www.in.gov/dor/files/reference/ib117.pdf.
Example 4. June has six dependents. She entered information for her
sixth dependent on line 1 on a second Schedule IN-DEP. She added Adopted child. An adopted child is always treated as your own child. An
the dependent claimed on the second schedule to the five claimed adopted child includes a child lawfully placed with you for legal adoption.
on the first schedule, and entered “6” on the first Schedule IN-DEP,
Box 6. She made sure to include the second schedule with her filing. Adoption taxpayer identification numbers (ATINs). If you have a
Likewise, she would include the sixth dependent in the total listed in dependent who was placed with you for legal adoption and you don’t
Box 7 if the child listed on the second Schedule IN-DEP qualified for know his or her SSN, you must get an ATIN for the dependent from the
the additional dependent child exemption. IRS. Get federal Form W-7A for details. If the dependent isn’t a U.S. citizen
or resident alien, apply for an ITIN instead, using federal Form W-7.
IT-40 Booklet 2022 Page 25
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Definitions and Special Rules for Dependents Continued Post-2008 decree or agreement. If the divorce decree or separation
agreement went into effect after 2008, the noncustodial parent cannot
Children of divorced or separated parents. A child will be treated as include pages from the decree or agreement instead of federal Form
the qualifying child or qualifying relative of his or her noncustodial 8332. The custodial parent must sign either federal Form 8332 or a
parent (defined later) if all of the following conditions apply. substantially similar statement the only purpose of which is to release
1. The parents are divorced, legally separated, separated under a the custodial parent’s claim to an exemption for a child, and the
written separation agreement, or lived apart at all times during the noncustodial parent must include a copy with his or her return. The
last 6 months of the year (whether or not they are or were married). form or statement must release the custodial parent’s claim to the child
2. The child received over half of his or her support for the year from without any conditions. For example, the release must not depend on
the parents (and the rules on Multiple support agreements, later, the noncustodial parent paying support.
do not apply). Support of a child received from a parent’s spouse
is treated as provided by the parent. Release of exemption revoked. A custodial parent who has revoked his
3. The child is in custody of one or both of the parents for more than or her previous release of a claim to exemption for a child must maintain
half of the year. with his or her records a copy of the revocation as DOR can require this
4. Either of the following applies. to be provided at a later date. For details, see federal Form 8332.
a. The custodial parent signs federal Form 8332 or a substantially
similar statement that he or she won’t claim the child as a Exception to citizen test. If you are a U.S. citizen or U.S. national and
dependent for the year, and the noncustodial parent maintains your adopted child lived with you all year as a member of your household,
a copy of the signed federal Form 8332 with his or her records that child meets the requirement to be a U.S. citizen in Step 2, question 1.
(as DOR can require this to be provided at a later date). If the
divorce decree or separation agreement went into effect after Exception to gross income test. If your relative (including a person
1984 and before 2009, the noncustodial parent may be able to who lived with you all year as a member of your household) is
include certain pages from the decree or agreement instead permanently and totally disabled (defined later), certain income for
of federal Form 8332. See Post-1984 and pre-2009 decree or services performed at a sheltered workshop may be excluded for this
agreement and Post-2008 decree or agreement. test. For details, see Income Tax Information Bulletin #117.
b. A pre-1985 decree of divorce or separate maintenance or
written separation agreement between the parents provides Exception to time lived with you. Temporary absences by you or
that the noncustodial parent can claim the child as a the other person for special circumstances, such as school, vacation,
dependent, and the noncustodial parent provides at least business, medical care, military service, or detention in a juvenile
$600 for support of the child during the year. facility, count as time the person lived with you. Also see Children of
divorced or separated parents, earlier, or Kidnapped child, later.
If conditions (1) through (4) apply, only the noncustodial parent can
claim the child for purposes of the dependency. If the person meets all other requirements to be your qualifying child
but was born or died during the year, the person is considered to have
Custodial and noncustodial parents. The custodial parent is the lived with you for more than half of the year if your home was this
parent with whom the child lived for the greater number of nights in person’s home for more than half the time he or she was alive during the
the year. The noncustodial parent is the other parent. If the child was year. Any other person is considered to have lived with you for all of the
with each parent for an equal number of nights, the custodial parent is year if the person was born or died during the year and your home was
the parent with the higher federal AGI. See Income Tax Information this person’s home for the entire time he or she was alive during the year.
Bulletin #117 for an exception for a parent who works at night, rules
for a child who is emancipated under state law, and other details. Foster child. A foster child is any child placed with you by an
authorized placement agency or by judgment, decree, or other order of
Post-1984 and pre-2009 decree or agreement. The decree or any court of competent jurisdiction.
agreement must state all three of the following.
1. The noncustodial parent can claim the child as a dependent Kidnapped child. If your child is presumed by law enforcement
without regard to any condition, such as payment of support. authorities to have been kidnapped by someone who is not a
2. The other parent will not claim the child as a dependent. family member, you may be able to take the child into account in
3. The years for which the claim is released. determining the dependency exemption. For details, see Income Tax
Information Bulletin #117.
The noncustodial parent must maintain with his or her records a copy
of all of the following pages from the decree or agreement as DOR can Married person. If the person is married and files a joint return, you
require these to be provided at a later date. cannot claim that person as your dependent. However, if the person is
• Cover page (include the other parent’s SSN on that page). married but does not file a joint return or files a joint return only to claim
• The pages that include all the information identified in (1) a refund of withheld income tax or estimated tax paid, you may be able to
through (3) above. claim him or her as a dependent. (See Income Tax Information Bulletin
• Signature page with the other parent’s signature and date of #117 for details and examples.) In that case, go to Step 2, question 3 (for a
agreement. qualifying child) or Step 3, question 4 (for a qualifying relative).
Page 26 IT-40 Booklet 2022
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Definitions and Special Rules for Dependents Continued Otherwise, we may disallow the exemption claimed for the dependent.
If the name or SSN on the dependent’s Social Security card is not
Multiple support agreements. If no one person contributed over correct or you need to get an SSN for your dependent, contact the
half of the support of your relative (or a person who lived with you all Social Security Administration.
year as a member of your household) but you and another person(s)
provided more than half of your relative’s support, special rules may If your dependent child was born and died during the year and you do
apply that would treat you as having provided over half of the support. not have an SSN for the child, enter “Died” in Box C and keep a copy
For details, see Income Tax Information Bulletin #117. of the child’s birth certificate, death certificate, or hospital records as
DOR can require you to provide these at a later date. The document
Permanently and totally disabled. A person is permanently and totally must show the child was born alive.
disabled if, at any time during the year, the person cannot engage in any
substantial gainful activity because of a physical or mental condition and a
doctor has determined that this condition has lasted or can be expected to Example. Died
last continuously for at least a year or can be expected to lead to death.
If you apply for an ATIN or an ITIN on or before the due date of your
Public assistance payments. If you received payments under the 2022 return (including extensions) and the IRS issues you an ATIN or
Temporary Assistance for Needy Families (TANF) program or other an ITIN as a result of the application, the IRS will consider your ATIN
public assistance program and you used the money to support another or ITIN as issued on or before the due date of your return.
person, see Income Tax Information Bulletin #117.
Student. A student is a child who during any part of 5 calendar months of
Qualifying child of more than one person. Even if a child meets the the tax year was enrolled as a full-time student at a school, or took a full-
conditions to be the qualifying child of more than one person, only time, on-farm training course given by a school or a state, county, or local
one person can claim the child as a dependent. If you and any other government agency. A school includes a technical, trade, or mechanical
person can claim the child as a dependent, the following rules apply: school. It does not include an on-the-job training course, correspondence
• If only one of the persons is the child’s parent, the child is treated school, or school offering courses only through the Internet.
as the qualifying child of the parent;
• If the parents file a joint return together and can claim the child as
a qualifying child, the child is treated as the qualifying child of the
Schedule 4: Other Taxes
parents;
• If the parents do not file a joint return together but both parents Line 1 – Use Tax on Internet, Mail Order and/or Out-
claim the child as a qualifying child, DOR will treat the child as Of-State Purchases
the qualifying child of the parent with whom the child lived for If you have purchased items while you were outside Indiana, through
the longer period of time during the year. If the child lived with the mail (for instance, by catalog or offer through the mail), through
each parent for the same amount of time, DOR will treat the child radio or television advertising and/or over the Internet, these purchases
as the qualifying child of the parent who had the higher federal may be subject to Indiana sales and use tax, if sales tax was not paid at
AGI for the year; the time of purchase. This tax, called “use” tax, is figured at 7% (.07).
• If no parent can claim the child as a qualifying child, the child is
treated as the qualifying child of the person who had the highest When you make purchases from a company in Indiana, that company
federal AGI for the year; is responsible for collecting the Indiana sales tax from you. When you
• If a parent can claim the child as a qualifying child but chooses not make purchases from an out-of-state company, you are responsible for
to, the child is treated as the qualifying child of the person who had making sure the use tax is paid. Either the out-of-state company collects
the highest federal AGI for the year, but only if that person’s federal the tax from you, or you must pay the tax directly to the State of Indiana.
AGI is higher than the highest federal AGI of any parent of the
child who can claim the child. Complete the worksheet on page 28 to figure your tax. If you paid sales
tax to the state where the item was originally purchased, you are allowed a
Example. You, your daughter and your mother live together. Your credit against your Indiana use tax for an amount paid up to 7%.
daughter meets the conditions to be a qualifying child for both you
and your mother. Your daughter doesn’t meet the conditions to be a Line 2 – Household Employment Taxes
qualifying child of any other person, including her other parent. Under If you paid cash wages during 2022 to an individual who is not:
the rules just described, you can claim your daughter as a dependent. • Your spouse,
Your mother cannot claim your daughter. However, if your mother’s • Your child under age 21,
federal AGI is higher than yours and you do not claim your daughter as • Your parent,
a dependent, your daughter is the qualifying child of your mother. • An employee under age 18; and
the individual worked in and around your home as a baby-sitter,
For more details and examples, see Income Tax Information Bulletin #117. nanny, health aide, private nurse, maid, caretaker, yard worker or
someone who does similar domestic duties, then that individual may
Social Security Number. You must enter each dependent’s 9-digit be defined as your employee.
Social Security number (SSN) on Schedule IN-DEP, Box C. Be sure the
name and SSN entered agree with the dependent’s Social Security card.
IT-40 Booklet 2022 Page 27
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Schedule 4: Other Taxes Continued The amount of Indiana state tax withheld is usually shown in box 17 and
the amount of and Indiana county tax withheld is usually shown in box
See Federal Publication 926, Household Employer’s Tax Guide, for more 19 of your W-2s. Indiana state and county withholding amounts may
information on how to define an employee. Visit www.irs.gov or call also be present on other forms, including W-2Gs, various 1099s, Form
the IRS at 1-800-829-1040. IN MSID-A and Schedule IN K-1.
If you paid cash wages of $2,200 or more to a household worker who is You must enclose your withholding statements, including W-2s,
your employee, or total cash wages of $1,000 or more in any calendar W-2Gs, 1099s, Form IN MSID-A and Schedule IN K-1s, with your
quarter of 2021 or 2022 to all household employees, you may have tax return to verify Indiana state and county taxes claimed as being
withheld state and county income taxes. To pay these taxes on your withheld. Failure to enclose these withholding statements will result
Indiana income tax return, contact DOR for Schedule IN-H, or download in a reduced refund or increase in the amount you owe. In addition to
one from www.in.gov/dor/tax-forms/2022-individual-income-tax-forms. the withholding statements, you must also enclose Schedule IN-W.
Line 3 – Recapture of certain Indiana offset credits If you are filing a joint return, be sure to include your spouse’s
Indiana requires the recapture of certain offset credits if certain withholding statements if they show Indiana state and/or county tax
conditions are met. Currently, these credits include the Indiana withholding amounts.
CollegeChoice 529 Education Savings Plan Credit and the Historic
Building Rehabilitation Credit. Important. The use of substitute W-2s will delay the processing of
• If contributions were made to an Indiana CollegeChoice 529 your return and may impact the issuance of any refund.
education savings plan in which you are the account owner and
you made a non-qualified withdrawal(s) from this plan during the A note about your withholding statements. It is important that any
tax year, you will probably have to repay some or all of any credits statement reporting withholding is readable. The state and county tax
previously claimed. amounts withheld are verified on every withholding statement that
• You may need to recapture some or all of the credits previously comes in with your tax return. These amounts also should be reflected
claimed for the Historic Building Rehabilitation Credit if you did on Schedule IN-W. If you are not filing electronically, we encourage
not meet certain requirements. you to enclose the best copy available when you file.
Complete and enclose Schedule IN-CR if you have an amount In some cases, verification of withholding may be delayed if the business
to be recaptured. Enter the total amount to be recaptured on line withholding the tax is late filing copies of withholding statements.
3. Download Schedule IN-CR by visiting www.in.gov/dor/tax-
forms/2022-individual-income-tax-forms. Line 3 – 2022 Estimated Tax Paid
If you made estimated tax payments, enter the total paid for 2022 on
this line. Also, include any extension payment made with Form IT-9
Schedule 5: Credits Extension of Time to File for tax year 2022.
Lines 1 and 2 – Indiana State and County Tax Withheld Note. Do not include on this line any estimated tax paid for tax year 2023.
If you are reporting any tax withheld on your behalf, report the
Indiana state and local taxes on these lines. Report the state and county Line 4 – Unified Tax Credit for the Elderly
withholdings separately. Do not claim credit for taxes withheld for This credit is no longer limited to a June 30 filing deadline. It may be
states other than Indiana or for localities outside Indiana. claimed during the same time period as any other refundable credit.
Sales/Use Tax Worksheet
List all purchases made during the tax year from out-of-state retailers.
Column A Column B Column C
Description of personal property purchased from out-of-state retailer Date of purchase(s) Purchase Price of
Property(s)
Magazine subscriptions:
Mail order purchases:
Internet purchases:
Other purchases:
1. Total purchase price of property subject to the sales/use tax: enter total of Columns C ........................................... 1
2. Sales/use tax: Multiply line 1 by .07 (7%) .................................................................................................................. 2
3. Sales tax previously paid on the above items (up to 7% per item) ............................................................................ 3
4. Total amount due: Subtract line 3 from line 2. Carry to Form IT-40, Schedule 4, line 1. If the amount is negative,
enter zero and put no entry on Schedule 4, line 1 ..................................................................................................... 4
Page 28 IT-40 Booklet 2022
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Schedule 5: Credits Continued Table A
Joint Filers Both Age 65 or Older
The tax return must be filed and credit claimed within three years of
the filing due date (including extensions) to be eligible for a refund. If the income on Line 1 of Your Allowable
Form IT-40 is: Credit* is:
This credit is available for certain low-income individuals who are age less than $1,000 ..................................................................................$140
65 or older. You may be able to claim this credit if you and/or your between $1,000 and $2,999 ................................................................ $90
spouse meet all the following requirements: between $3,000 and $9,999 ................................................................ $80
• You and/or your spouse must have been age 65 or older by Dec.
31, 2022, Use Table B if:
• If married and living together at any time during the year, you You meet all the requirements listed above, and:
must file a joint return, • You are age 65 or older and are single or widowed,
• The amount on line 1 of Form IT-40 must be less than $10,000, • You are filing a joint return and only one is age 65 or older, or
• You must have been a resident of Indiana for at least six months • You are filing a joint return and only one was an Indiana resident
during 2022, and for at least six months, or you are married but did not live with
• You must not have been in prison for 180 days or more in 2022. your spouse during the tax year, are age 65 or older and are
married filing separately.
Note. Disabled persons under age 65 do not qualify for this credit. Table B
Only One Person Age 65 or Older
How should you file to claim the credit? If the income on Line 1 of Your Allowable
You may claim the credit by filing the simplified Form SC-40* if your Form IT-40 is: Credit* is:
taxable income is low enough that you are not required to file Form less than $1,000 ..................................................................................$100
IT-40. You will qualify if: between $1,000 and $2,999 ................................................................ $50
• You are single or widowed and your income on line 1 of Form IT- between $3,000 and $9,999 ................................................................ $40
40 is less than $2,500; or
• You are married with only one person age 65 or older and your *Once you have located your credit on Table A or Table B, enter that
income on line 1 of Form IT-40 is less than $3,500; or amount on line 4.
• You are married with both persons are age 65 or older and your
income on line 1 of Form IT-40 is less than $5,000; Remember to file either Form SC-40 or Form IT-40, but not both.
• You have no other credits, such as withholding or estimated tax
credits. Line 5 – Indiana’s Earned Income Credit (EIC)
If you are eligible for an earned income credit on your federal tax
*Form SC-40 can be found at www.in.gov/dor/tax-forms/2022- return, you may be eligible for Indiana’s earned income credit, too.
individual-income-tax-forms. Here are some important things to know:
• You must be eligible for and have claimed an EIC on your federal
No double benefit allowed. If you qualify to file Form SC-40 and do tax return. If not, STOP. You are not eligible to claim Indiana’s EIC.
so, then do not also file Form IT-40 and claim the credit a second time. • Your income on Form IT-40, line 1 (or Indiana’s Schedule A, line
36A), must be less than $49,399. If it is the same amount or more,
If you are required to file Form IT-40 you may claim the credit on STOP. You are not eligible to claim Indiana’s EIC.
Schedule 5, line 4. You can claim the credit on either Form IT-40 or • Schedule IN-EIC must be completed and enclosed by all filers
Form SC-40, but file only one of these forms, and only file once. claiming the EIC.
Important. To figure the EIC, go to Indiana’s Publication EIC at www.in.gov/
• If your spouse died after Jan. 1, 2022, you can claim this credit by dor/tax-forms/2022-individual-income-tax-forms. This publication
filing a joint return. includes all worksheets and tables, along with any 2022 federal EIC
• If a person dies and does not have a surviving spouse, then no one changes that Indiana is not following.
can claim the credit on behalf of the deceased person.
• If you are claiming an automatic taxpayer refund for 2022, do not Line 6 – Lake County (Indiana) Residential Income
include the amount on this line. Enter that amount on Line 11. Tax Credit
You may be eligible to claim a Lake County (Indiana) Residential
To Figure Your Unified Tax Credit for the Elderly: Income Tax credit if you meet all three of the following requirements.
Use Table A if: 1. You paid property tax to Lake County (Indiana) on your
You meet all the requirements listed above, and: residence. Your “residence” is your principal dwelling. You must
• You are filing a joint return, lived with your spouse during the tax either own or be buying the residence under contract, and must
year, both were Indiana residents for at least six months and both pay property tax to Lake County (Indiana) on that residence.
were age 65 or older by Dec. 31, 2022, or
• Both you and your spouse met all the above-requirements and 2. Your Modified Indiana Adjusted Gross Income is less than
your spouse died after Jan. 1, 2022. $18,600.
IT-40 Booklet 2022 Page 29
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Schedule 5: Credits Continued Worksheet B: Indiana AGI Phaseout
3. You are not claiming the Homeowner’s Residential Property Tax Complete if the answer from Step 2, line 3 is between $18,000 and
Deduction on Indiana Schedule 2, line 2. If you are claiming this $18,600 and you are filing as single or married filing jointly.
credit, make sure to see the Final Step after Worksheet B in the B1 Allowable maximum Indiana AGI ............. B1 $ 18,600
next column. B2 Enter the amount from Step 2, line 3... ...... B2 $ ____________
B3 Subtract B2 from B1 (if answer is zero
Complete the following steps to see if you are eligible to claim this
or a negative amount, STOP.
credit.
You do not qualify for this credit) .............. B3 $ ____________
Step 1 B4 Multiply the amount on B3 by 0.5.
• Did you pay property tax to Lake County (Indiana) on your Round answer; see page 5 for
residence during the year? ☐ Yes No☐ rounding instructions ..................................B4 $ ____________
• If you answered “no,” STOP. You do not qualify for this credit. B5 Enter the amount of Indiana property tax
• If you answered “yes,” continue to Step 2. you paid on your Lake County residence ... B5 $ ____________
B6 Enter the smaller of B4 or B5. This is your
Step 2 credit. Enter here and on Schedule 5, line 6,
1. First, prepare your state tax return and continue to the Final Step below ......... B6 $ ____________
(Form IT-40) through line 7.
Enter amount from line 7 here ..............................1 __________
2. Enter any Homeowner’s Residential Property Worksheet C:
Tax Deduction reported on Schedule 2, line 2 ....2 __________ Complete if the answer from Step 2, line 3 is less than $9,000 and
3. Modified Indiana AGI. Add lines 1 and 2, you are a married individual filing separately.
enter result here and continue to Step 3 ...............3 __________ C1 Enter the amount of Indiana
property tax you paid on your
Step 3 Lake County residence ................................. C1 $ ____________
If you are filing as a single individual or as married filing jointly: C2 Maximum credit ........................................... C2 $ 150
• If the amount from Step 2, line 3 is greater than $18,599, STOP.
You do not qualify for this credit. C3 Enter the smaller of C1 or C2. This is
• If the amount from Step 2, line 3 is less than $18,000, go to your credit. Enter here and on Schedule 5,
Worksheet A to figure your credit. line 6, and skip to the Final Step below .... C3 $ ____________
• If the amount from Step 2, line 3 is between $18,000 and $18,599,
go to Worksheet B to figure your credit. Worksheet D: Indiana AGI Phaseout
Complete if the answer from Step 2, line 3 is between $9,000 and
If you are filing as a married individual filing separately: $9,300 and you are a married individual filing separately.
• If the amount from Step 2, line 3 is greater than $9,299, STOP. D1 Allowable maximum Indiana AGI ............. D1 $ 9,300
You do not qualify for this credit.
• If the amount from Step 2, line 3 is less than $9,000, go to D2 Enter the amount from Step 2, line 3... ...... D2 $ ____________
Worksheet C to figure your credit. D3 Subtract D2 from D1 (if answer is zero
• If the amount from Step 2, line 3 is between $9,000 and $9,299, go or a negative amount, STOP.
to Worksheet D to figure your credit. You do not qualify for this credit) .............. D3 $ ____________
D4 Multiply the amount on D3 by 0.5.
Worksheet A: Round answer; see page 5 for
Complete if the answer from Step 2, line 3 is less than $18,000 and rounding instructions ..................................D4 $ ____________
you are filing as single or married filing jointly. D5 Enter the amount of Indiana property tax
A1 Enter the amount of Indiana you paid on your Lake County residence ... D5 $ ____________
property tax you paid on your D6 Enter the smaller of D4 or D5. This is your
Lake County residence ................................. A1 $ ____________ credit. Enter here and on Schedule 5, line 6,
A2 Maximum credit ........................................... A2 $ 300 and continue to the Final Step below ......... D6 $ ____________
A3 Enter the smaller of A1 or A2. This is
Final Step
your credit. Enter here and on Schedule 5,
Remember, you are not eligible to claim both the Homeowner’s Property
line 6, and skip to the Final Step below .... A3 $ ____________
Tax Deduction and the Lake County Residential Income Tax Credit in the
same year. Therefore, if you are claiming this credit, make sure to remove
any Homeowner’s Property Tax Deduction reported on Schedule 2, line 2.
Page 30 IT-40 Booklet 2022
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Schedule 5: Credits Continued Line 10 – Adoption Credit
You are eligible to claim an adoption credit on your state tax return if
Lines 7 and 8: Economic Development for a Growing you claimed an adoption credit on your federal tax return. The amount
Economy Credit (EDGE); Economic Development for of the credit is 20% of the federal credit allowed per child, or $2,500
a Growing Economy Retention Credit (EDGE-R) per child, whichever is less. If you are claiming a credit because of a
If you have business income (including partnership or S corporation federal carryover of the adoption credit, the total credit allowable for
income) you may be eligible for one or both of these credits. These the child is limited to $2,500.
credits are available to businesses who conduct certain activities that
are designed to foster job creation and/or job retention in Indiana. Federal adoption carryforward credit
A carryforward credit claimed on federal Form 8839 may be allowed if it
This credit is available to owners of pass-through entities such as S is from the preceding five tax years (2017, 2018, 2019, 2020 and/or 2021).
corporations, partnerships, limited liability companies, etc. However, if all To figure the credit, use the Adoption Credit Worksheet on page 32.
or part of your share of the credit is claimed by the pass-through entity, Use lines 6 through 30 if you are carrying forward a credit from a previous
you may not claim the previously-claimed credit on your own behalf. year. Complete only the lines applicable to the year(s) from which you are
carrying forward a credit. If you are not claiming a credit based on any
Contact the Indiana Economic Development Corporation (IEDC), federal adoption credit carryforward, skip lines 6 through 30.
One North Capitol, Suite 700, Indianapolis, IN, 46204, for eligibility
requirements, or visit iedc.in.gov for additional information. See Income Tax Information Bulletin #111 at www.in.gov/dor/files/
reference/ib111.pdf for more information about this credit.
To claim these credits you must complete and enclose Schedule IN-
EDGE or Schedule IN-EDGE-R, which are located online at www. Maintain with your records a copy of the federal Form 8839, federal
in.gov/dor/tax-forms/2022-individual-income-tax-forms. Adoption Credit Carryforward Worksheets (if applicable), and federal
Form 1040 as DOR can require you to provide this information at a
The information to be reported on Schedule IN-EDGE or Schedule later date.
IN-EDGE-R is located on the Indiana Schedule IN K-1 or on the
approved credit agreement letter from the IEDC. Line 11 – 2022 Additional Automatic Taxpayer Refund
If you or your spouse (if married filing jointly) were not eligible for
Line 9 – Headquarters Relocation Credit the combined $325 automatic taxpayer refund issued during 2022, you
(refundable portion) or your spouse may be eligible for a $200 automatic taxpayer refund.
A business with annual worldwide revenue of $50 million, at least 75 You are eligible for this additional taxpayer refund only if you (or your
employees (for credits awarded before July 1, 2022), and which relocates spouse if married filing jointly) meet all of the following criteria:
its corporate headquarters to Indiana may be eligible for a credit. The credit • You were not eligible to receive the combined $325 automatic
may be as much as 50% of the cost incurred in relocating the headquarters. taxpayer refund paid in 2022. If you had all or part of the $325
offset due to other liabilities, you are considered eligible for the
Beginning with the 2022 tax year, this credit must be reported on $325 combined automatic taxpayer refund and are not eligible to
Schedule IN-OCC, found at www.in.gov/dor/tax-forms/2022-individual- claim the refund on this return.
income-tax-forms. Make sure to enclose this schedule with your tax filing. • You were not claimed as a dependent on another individual’s
Indiana income tax return in 2022.
Some or all of this credit may be refundable. If the IEDC has ruled some • You received Social Security income in 2022.
or all of this credit to be refundable, enter on this line the refundable ο This can include any benefit received from the Social Security
amount of the credit less the portion of the credit used to offset your tax Administration regardless of age.
liability. You must maintain the documentation provided to you that ο This does not include benefits issued by a state, territory,
supports the refundable portion of this credit as DOR may request it. or foreign county, Railroad Retirement Board benefits, or
federal Civil Service Retirement benefits.
Caution. The combination of the headquarters relocation credit claimed ο Benefits received in 2022 but required to be repaid are not
here (offset amount) and on lines 29 through 31 (refundable amount) considered to be received.
may not exceed the total of the credit that is available. See the instructions • You file a resident return before January 1, 2024.
for the Headquarters Relocation Credit beginning on page 39.
If you are married filing jointly, your eligibility and your spouse’s
For more information (including limitations on the credit and the eligibility must be determined separately. Enter $200 if you or your
application process), see Income Tax Income Tax Information Bulletin spouse (if married filing jointly) are eligible to claim the automatic
#97, available at www.in.gov/dor/files/reference/ib97.pdf. This credit is taxpayer refund if you meet the requirements above. Enter $400 if
administered by the IEDC. Contact them at One North Capitol, Suite you are married filing jointly and both you and your spouse meet the
700, Indianapolis, IN 46204, via website at iedc.in.gov, or by phone at requirements above.
(317) 232-8800.
IT-40 Booklet 2022 Page 31
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Schedule 5: Credits Continued
Adoption Credit Worksheet
Child 1 Child 2 Child 3
1. First Name
2. Last Name
3. Year of Birth
4. Identification Number
5. Check if this child is NOT claimed as a dependent
6. Enter amount from 2017 Form 8839, line 11 $ $ $
7. Enter the amount from 2017 Form 8839, line 12 $ $ $
8. Divide line 6 by line 7; round answer to four decimal places
9. Enter the amount of 2017 carryforward credit used in 2022 (line 2 minus line 10 of the
2022 Adoption Credit Carryforward Worksheet from the Form 8839 instructions) $ $ $
10. Multiply line 8 by line 9; round to nearest whole dollar. Enter this amount on line 36 $ $ $
11. Enter amount from 2018 Form 8839, line 11 $ $ $
12. Enter the amount from 2018 Form 8839, line 12 $ $ $
13. Divide line 11 by line 12; round answer to four decimal places
14. Enter the amount of 2018 carryforward credit used in 2022 (line 3 minus line 12 of the
2022 Adoption Credit Carryforward Worksheet from the Form 8839 instructions) $ $ $
15. Multiply line 13 by line 14; round to nearest whole dollar. Enter this amount on line 37 $ $ $
16. Enter amount from 2019 Form 8839, line 11 $ $ $
17. Enter the amount from 2019 Form 8839, line 12 $ $ $
18. Divide line 16 by line 17; round answer to four decimal places
19. Enter the amount of 2019 carryforward credit used in 2022 (line 4 minus line 14 of the
2022 Adoption Credit Carryforward Worksheet from the Form 8839 instructions) $ $ $
20. Multiply line 18 by line 19; round to nearest whole dollar. Enter this amount on line 38 $ $ $
21. Enter amount from 2020 Form 8839, line 11 $ $ $
22. Enter the amount from 2020 Form 8839, line 12 $ $ $
23. Divide line 21 by line 22; round answer to four decimal places
24. Enter the amount of 2020 carryforward credit used in 2022 (line 5 minus line 16 of the
2022 Adoption Credit Carryforward Worksheet from the Form 8839 instructions) $ $ $
25. Multiply line 23 by line 24; round to nearest whole dollar. Enter this amount on line 39 $ $ $
26. Enter amount from 2021 Form 8839, line 11 $ $ $
27. Enter the amount from 2021 Form 8839, line 12 $ $ $
28. Divide line 26 by line 27; round answer to four decimal places
29. Enter the amount of 2021 carryforward credit used in 2022 (line 6 minus line 18 of the
2022 Adoption Credit Carryforward Worksheet from the Form 8839 instructions) $ $ $
30. Multiply line 28 by line 29; round to nearest whole dollar. Enter this amount on line 40 $ $ $
31. Enter amount from 2022 Form 8839, line 11 $ $ $
32. Enter the amount from 2022 Form 8839, line 12 $ $ $
33. Divide line 31 by line 32; round answer to four decimal places
34. Enter the amount from line 16 of Form 8839 reduced by the amount on line 13 of
Form 8839. If less than zero, enter 0 $ $ $
35. Multiply line 33 by line 34; round to nearest whole dollar. Enter this amount on line 41 $ $ $
Page 32 IT-40 Booklet 2022
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Schedule 5: Credits Continued
Adoption Credit Worksheet (continued)
Child 1 Child 2 Child 3
36. Enter the amount on line 10 $ $ $
37. Enter the amount on line 15 $ $ $
38. Enter the amount on line 20 $ $ $
39. Enter the amount on line 25 $ $ $
40. Enter the amount on line 30 $ $ $
41. Enter the amount on line 35 $ $ $
42. Enter the sum of lines 36 through 41 $ $ $
43. Multiply line 42 by 20% (0.20) $ $ $
44. Enter $2,500 $ $ $
45. Enter the sum of any previous Indiana adoption credits claimed for the child $ $ $
46. Enter line 44 minus line 45. If less than zero, enter 0 $ $ $
47. Enter the lesser of line 43 and line 46. Enter this amount on IT-40, Schedule 5, line 10,
or IT-40PNR, Schedule F, line 10 $ $ $
IT-40 Booklet 2022 Page 33
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Schedule IN-DONATE Enter both the name of the fund and the amount you wish to donate
under line 1, and enter 201 as the designated 3-digit code number.
If you are claiming this credit and filing this return on paper, you must Also, see the Limitation below.
attach a copy of Form SSA-1099 if you (or your spouse if married filing
jointly) received benefits other than Supplemental Security Income If you do not have an overpayment, but want to support the Military
(SSI). If you (or your spouse if married filing jointly) received only SSI, Family Relief Fund, you may make a contribution by writing a check
please attach a letter from the Social Security Administration indicating made payable to the Military Family Relief Fund and send it to the
qualification for benefits. If you are claiming a $400 credit, you must Indiana Department of Veterans Affairs, 302 W. Washington Street,
attach the required forms for both you and your spouse. Failure to Suite E-120, Indianapolis, IN 46204.
include the required form will result in your credit being denied.
Read more about this fund and other programs available for Hoosier
If you are filing this return electronically, you must provide the veterans online at www.in.gov/dva.
information from boxes 1, 2, and 5 of the Form SSA-1099 you (or
your spouse if married filing jointly) or check the box indicating SSI • Public K – 12 Education Fund 202
eligibility (if you are claiming based solely on receiving SSI). Failure You may donate all or a portion of your overpayment to help fund
to properly provide the requested information will result in your public education for kindergarten through grade 12 in Indiana. Enter
credit being denied. both the name of the fund and the amount you wish to donate under
line 1, and enter 202 as the designated 3-digit code number. Also, see
Note. It is possible for one spouse to receive the $325 combined the following Limitation.
automatic taxpayer refund paid in 2022 and the other spouse to
qualify for the $200 automatic taxpayer refund on this return. Limitation
The combination of the amounts you wish to donate to these funds
cannot exceed the overpayment shown on Form IT-40, line 16.
Schedule IN-DONATE
Each of the following funds has been assigned a three-digit code • If the total of the donations designated on this schedule is more
number. When listing your contribution on Schedule IN-DONATE than your available overpayment, the donation(s) will be reduced
under line 1, enter the name of the fund, the three-digit code number on a pro rata basis. For example, Sam wants to donate $20 to
and the amount to be contributed. each fund, for a total of $60. His actual overpayment is $51. The
donations to the three funds will be evenly reduced to $17 each.
You may contribute all or a portion of your Form IT-40, line 16 • If you entered a donation to one or more of these funds, and
overpayment to the following funds: wish to apply some of your overpayment to next years estimated
tax account, the overpayment will be applied first to the selected
• Indiana Nongame Wildlife Fund 200 fund(s) and then to the estimated tax account. Any remaining
The Indiana Wildlife Diversity Program offers you the opportunity to overpayment will be refunded to you. For example, Aaron donated
play an active role in conserving Indiana’s nongame and endangered $100 to the Indiana Nongame Wildlife Fund, and is applying $50
wildlife. This program is funded through public donations to the to next year’s estimated tax account. His actual overpayment is
Indiana Nongame Wildlife Fund. The money you donate goes directly only $110. The full $100 will be applied to the selected fund; the
to the protection and management of more than 750 wildlife species remaining $10 will be applied to next year’s estimated tax account.
in Indiana - from songbirds and salamanders to state-endangered
Trumpeter swans and spotted turtles.
Schedule IN-W: Indiana Withholding
Enter both the name of the fund and the amount you wish to donate
under line 1, and enter 200 as the designated 3-digit code number. Statements
You must complete and enclose Schedule IN-W if you are reporting
Also, see the Limitation below.
any tax withheld on your behalf and when filing your IT-40, IT-40PNR
or IT-40RNR by paper. Enter information from each withholding
If you do not have an overpayment, but want to support the Wildlife
statement, including Form W-2, 1099, IN-MSID-A or Schedule IN K-1.
Diversity Section, do not change your tax return. You may make a
contribution online at www.in.gov/dnr/fish-and-wildlife/nongame-and-
If you have a withholding statement that withholds tax for multiple
endangered-wildlife/donate-to-the-indiana-nongame-wildlife-fund.
Indiana counties, enter the Indiana state income and Indiana state tax
withheld once for that statement. Do not duplicate the Indiana state
• Military Family Relief Fund 201 income and Indiana state tax withheld on multiple lines.
The Indiana Department of Veterans Affairs’ Military Family Relief Fund
provides emergency grants to be used by military and veteran families.
Column A – Social Security Number
The funds can be utilized for needs such as food, housing, utilities,
Enter your or your spouse’s (if married filing jointly) social security
medical services, transportation, and other essential family support
number from your W-2, 1099, IN-MSID-A, IN K-1, or other form on
expenses which have become difficult to afford. The Military Family Relief
which Indiana state and/or local tax withholding is reported for you or
Fund has helped more than 2000 families since its inception in 2007.
your spouse (if married filing jointly).
Page 34 IT-40 Booklet 2022
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Schedule IN-W: Indiana Withholding Statements Continued Line 1 – Credit for Local Taxes Paid Outside of Indiana
If you figured county tax on Form IT-40, line 9, and had to pay a local
Column B – Form Code income tax outside Indiana, you may be able to take a credit. This
Enter the appropriate form code listed on the Reference Chart credit applies only if the tax you paid outside Indiana was to another
provided at the bottom of this schedule. Leave blank if your W-2, city, county, town, or other local governmental entity; and they did not
1099, or other federal form type is not listed or if your withholding is refund the tax, or give you a credit for Indiana county tax.
from IN-MSID-A or IN K-1.
The credit can be used to reduce your county tax liability. Carefully
Column C – Employer or Payer Identification Number read instructions for Line B below.
Enter the employer’s or State/payer’s identification number (ID).
Complete lines A, B and C to figure your credit.
Column D – State Income
A. Enter the amount of tax paid to the
Enter the amount of Indiana income.
non-Indiana locality .............................................. A_________
Column E – State Tax Withheld B. Multiply the amount of income taxed by
Enter the amount of Indiana State Tax withheld. the non-Indiana locality by the rate from
Schedule CT-40, line 2. Enter result here ........... B _________
Important. Complete Columns F, G, and H only if there is Indiana C. Enter the amount of Indiana county
local withholding. income tax shown on Form IT-40, line 9 ........... C _________
Column F – Local Income The amount of the credit is the lesser of the amounts on A, B or C.
Enter the amount of Indiana local income.
Note. See the Combined Limitation page 36.
Column G – Local Tax Withheld
Enter the amount of County Tax withheld. Important. You must enclose either a copy of your W-2s or other
withholding statements showing the non-Indiana locality amount
Column H – Locality Code withheld or a copy of the non-Indiana locality tax return.
Enter the appropriate Indiana 2-digit county code. Refer to the back of
Schedule CT-40, CT-40PNR or IT-40RNR for a list of county codes. Remember, you can use this credit only if you have both:
• A county tax amount on Form IT-40, line 9, and
Line 26 • A local income tax that you had to pay outside Indiana.
Add Column E, lines 1 through 25. Enter this total on line 1 of IT-40
Schedule 5, or line 1 of IT-40PNR Schedule F, or line 7 of IT-40RNR Line 2 – Community Revitalization Enhancement
District Credit
Line 27 A state and local income tax liability credit is available for a qualified
Add Column G, lines 1 through 25. Enter this total on line 2 of IT-40 investment made within a community revitalization enhancement
Schedule 5, or line 2 of IT-40PNR Schedule F, or line 8 of IT-40RNR. district. The expenditure must be made under a plan adopted by an
advisory commission on industrial development and approved by the
Note. You must enclose your W-2s, 1099s, IN-MSID-As, IN K-1s, or Indiana Economic Development Corporation before it is made. The
other forms reporting Indiana state or county tax withholding with credit is equal to 25% of the qualified investment made by the taxpayer
this completed schedule. during the taxable year.
If you are reporting more than 25 withholding statements, complete This credit is available to owners of pass-through entities such as
and attach additional Schedule IN-W as needed, but do not complete S corporations, partnerships, limited liability companies, etc. It is
lines 26 and 27. On the first schedule, enter the total of state tax nonrefundable and cannot be carried back. You may carry forward any
withheld (Column E) from all pages on line 26 and enter the total of excess credit to the next tax year.
local tax withheld (Column G) from all pages on line 27. Use these
totals numbers on lines 1 and 2 of IT-40 Schedule 5 or IT-40PNR The allowable credit is the lesser of the available credit or the
Schedule F, or lines 7 and 8 of IT-40RNR. county tax due on line 9 of Form IT-40. Also, claim any unused
amount (within certain limitations) on Schedule 6 under line 6 (see
instructions for this credit on page 38).
Schedule 6: Offset Credits Contact the Indiana Economic Development Corporation, One North
Capitol, Suite 700, Indianapolis, IN, 46204 for additional information.
The following credits cannot be refunded; their purpose is to help
reduce your state and/or county tax amounts due. See the Combined
See the Restriction for Certain Tax Credits - Limited to One per
Limitation areas after the instructions for line 3 and line 7.
Project below for additional limitations. Also, see the Combined
Limitation below.
IT-40 Booklet 2022 Page 35
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Schedule 6: Offset Credits Continued Important. You must maintain documentation of your contributions.
DOR can require you to provide this information at a later date.
Line 3 – Other Local Credits
Currently, there are no other local credits available to be reported in Note. Tuition paid to a college or university is not a contribution, and
this space. does not qualify for this credit.
Restriction for Certain Tax Credits – Limited to One See the Combined Limitation on page 43.
per Project
A taxpayer may not be granted more than one credit for the same Line 5 – Credit for Taxes Paid to Other States
project. The credits that are subject to this limitation are the If you received income from another state while you were an Indiana
alternative fuel vehicle manufacturer credit, community revitalization resident, you must report that income on your Indiana income tax
enhancement district credit, enterprise zone investment cost credit, return. You may be able to take a credit for taxes paid to another state.
Hoosier business investment credit, industrial recovery credit, and the If you had income from another state, and had to pay taxes to that
venture capital investment credit. state, read the following instructions carefully.
For more information see Income Tax Information Bulletin #59 If you were an Indiana resident during the tax year and had income
available at www.in.gov/dor/files/reference/ib59.pdf. from any of the states listed in Group A below, you should first find
out what the other state’s rules are concerning the taxation of your
Apply this restriction first when figuring your credits. Then apply the income.
Combined Limitation.
Group A
Combined Limitation No Agreement (Credit taken on resident return)
There is one final limitation if you claim more than one credit on lines Alabama Louisiana New York
1 through 3 of Schedule 6. These credits, when combined, cannot be
Arkansas Maine North Carolina
greater than the county tax shown on Form IT-40 line 9; if they are,
adjust the amounts before you enter them. See the following Order of California Maryland North Dakota
Application and example for guidance. Colorado Massachusetts Oklahoma
Connecticut Minnesota Rhode Island
Order of Application Delaware Mississippi South Carolina
First, use the credits which cannot be carried over and applied Georgia Missouri Utah
against your county tax in another year. This means apply any credit Hawaii Montana Vermont
for local taxes paid outside Indiana first, then apply any community Idaho Nebraska Virginia
revitalization enhancement district credit.
Illinois New Hampshire* West Virginia
How to Adjust the Amount of Credit to be Entered Iowa New Jersey
(Example) Kansas New Mexico
Example. Megan is eligible to claim a $100 credit for local taxes paid Any foreign countries or U.S. possessions
outside Indiana plus a $200 community revitalization enhancement * Capital gain, interest, and dividends only.
district credit (CREED), for a $300 total amount in offset credits. Her
county tax due (IT-40, line 9) is $160. Since her combined credits are If you are personally subject to the District of Columbia Unincorporated
more than her county tax due, she should reduce the last entry (the Business Franchise Tax (D-30) on income that you received while you
$200 CREED credit) by the $140 difference to $60. She will enter the are an Indiana resident, you may claim a credit against your Indiana
full $100 credit for local taxes paid outside Indiana on Schedule 6, line adjusted gross income tax for those taxes. Do not claim a credit for taxes
1, and the $60 limited CREED credit on line 3a. paid to the District of Columbia from Form D-40.
Note. Megan may use the $140 remaining CREED credit to offset any Note. If you are an owner or beneficiary of a partnership, S corporation,
state adjusted gross income tax due on this year’s tax return (IT-40, trust, or similar pass-through entity and the entity is subject to a tax
line 8). See additional instructions for the CREED credit on page 38. imposed by another state at the entity level, you cannot take a credit for the
tax imposed at the entity level, even if the tax is allowable as a credit against
Line 4 – College Credit your personal tax liability imposed by that state. This disallowance does
If you donated money or property to an Indiana college or university, not apply to composite or withholding taxes imposed by another state.
you may be able to take a credit of up to $100 on a single return or
$200 on a joint return. To claim this credit you must complete and
enclose Schedule CC-40. For additional information, see Schedule
CC-40 at www.in.gov/dor/tax-forms/2022-individual-income-tax-
forms and Income Tax Information Bulletin #14 at www.in.gov/dor/
files/reference/ib14.pdf.
Page 36 IT-40 Booklet 2022
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Schedule 6: Offset Credits Continued Exception 2. If you are subject to state income tax on income from a non-
United States country or territory that is not currently subject to tax in that
Group A Worksheet country but will be, enclose the following information with your return:
• The country or territory in which the income is subject to tax
A. Enter the amount of tax paid to the other • The type of income (dividends, interest, etc.)
state. (This does not mean the tax withheld • The amount of income
from your wages, but the actual tax figured • The reason the income is deferred by the country
on the other state’s return) ..................................... A _________ • The tax that will be due upon the income upon recognition by the
B. Multiply the amount of income from the foreign country
other state (that is subject to Indiana tax) • The credit for taxes paid to another state claimed on the income
by 3.23% (.0323) ......................................................B _________ (include a computation similar to the Group A worksheet above).
C. Enter the amount of Indiana state income
tax shown on Form IT-40 line 8 .......................... C _________ Group B
Reciprocal Agreement (Wages, Salaries, Tips, and Commissions Only)
The lesser of the amounts on A, B or C is your allowable credit for Kentucky Ohio Wisconsin
taxes paid to other states. Michigan Pennsylvania
You must enclose a copy of the income tax return (not just the W-2 If you were an Indiana resident during the tax year and had income
forms) you filed with the other state to claim this credit. If the other from one of the states listed in Group B, you are covered by a
state’s return is not enclosed, the credit will not be allowed. Likewise, reciprocal agreement. However, this agreement only applies to income
if you have a foreign tax credit, complete the Group A Worksheet and from wages, salaries, tips and commissions. If you had other types of
enclose federal Form 1116. If Form 1116 was not required, enclose income from these states (such as business income, farm income, etc.),
Forms 1099-INT and/or 1099-DIV (or a substitute statement) to verify use the Group A Worksheet to figure your credit.
the foreign tax and amount of income being taxed.
Normally, employers in these states will withhold Indiana state tax
Example. Ryan reported $10,000 Illinois-source wage income on the from your wages because of the reciprocal agreement. However, if the
Illinois nonresident individual income tax return, and paid $300 tax state tax they withheld is not for Indiana, you must file a claim for
to Illinois on that income. His Indiana state tax liability from line 8 of refund with that state. You still have to include this income on your
Form IT-40 is $870. Indiana return and pay the Indiana tax. You’ll get some or all of the
other state’s taxes back by filing a refund claim with them.
He will enter the following information on the Group A Worksheet.
A. $300 (tax paid to Illinois) Note. Winnings from Indiana riverboats and lotteries are not eligible
B. $323 ($10,000 x .0323, tax due to Indiana) for the reciprocal agreement.
C. $870 (Form IT-40 line 8)
Caution. You may have to make estimated tax payments to Indiana. If
Ryan’s credit is $300, which is the lesser of A, B and C. the reciprocal state employer does not withhold Indiana withholding
on your wage income, or does not withhold enough, see page 8 for
Example. Sarah owns an interest in a partnership. Her share of the information on how to figure and pay estimated tax.
partnership’s income is $100,000 and her share of the partnership’s
bonus depreciation is $10,000. The partnership derived 40% of its If you were a full-year resident of one of the reciprocal states and your
income from Illinois sources, and Sarah paid $2,000 of state income income from Indiana was from wages, salaries, tips and commissions,
tax to Illinois. Her Indiana state tax liability is $5,000. you should file Form IT-40RNR, Reciprocal Nonresident Income
Tax Return. If you were a resident of one of the reciprocal states and
She will enter the following: had other types of income from Indiana, or were a part-year Indiana
A. $2,000 (tax paid to Illinois) resident, you will need to file Form IT-40PNR.
B. $1,421 (($100,000 income +$10,000 bonus depreciation)
*.4 (share of partnership income from Illinois sources) Group C
*.0323 (tax due to Indiana) Reverse Credit (Credit taken on nonresident return)
C. $5,000 (Form IT-40 line 8)
Arizona Oregon Washington D.C.
Sarah’s credit is $1,421, the lesser of A, B, and C.
If you were an Indiana resident during the tax year and had income
Exception 1 – Gambling winnings from other states. If you’re not from one of the states in Group C, you must pay Indiana tax on all
required to file another state’s income tax return to report gambling your income. You will also need to file a nonresident return with the
winnings from that state, enclose the W-2G issued by that state. Use other state and claim a credit on their tax return for the Indiana tax
the amount of state tax withheld by that state on Line A of the Group paid. For Indiana residents who are subject personally to the District
A Worksheet. of Columbia Unincorporated Business Franchise Tax (D-30) on
income that you received, please see the Group A instructions.
IT-40 Booklet 2022 Page 37
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Schedule 6: Offset Credits Continued Coal Gasification Technology Investment Credit 806
A credit may be available for a qualified investment in an integrated
Group D coal gasification power plant or a fluidized bed combustion technology.
No State Income Tax (No credit allowed) This credit is available to owners of pass-through entities such as
Alaska South Dakota Washington S corporations, partnerships, limited liability companies, etc. You
Florida Tennessee Wyoming must file an application for certification with the Indiana Economic
Development Corporation (IEDC). For more information, contact
Nevada Texas
the Indiana Economic Development Corporation, One North Capitol,
If you were an Indiana resident during the tax year and had income Suite 700, Indianapolis, IN, 46204, or visit their website at iedc.in.gov.
from one of the states in Group D, you are not allowed to claim Also, see Income Tax Informa tion Bulletin #99 www.in.gov/dor/files/
this credit. These states do not have an income tax. You must file an reference/ib99.pdf.
Indiana resident return and pay Indiana tax on all your income.
Enclose the certificate of compliance issued by IEDC to support this
See the Combined Limitation on page 43. credit. Enter 806 under line 6 if claiming this credit.
See the Combined Limitation on page 43.
Line 6 – Other Credits
Each of the following credits has been assigned a three-digit code Community Revitalization Enhancement District
number. When claiming the credit on Schedule 6 under line 6, enter the Credit 808
name of the credit, the three-digit code number and the amount claimed. See the Schedule 6 line 3 instructions for details about this credit. This
credit is available to offset both your state and local tax liabilities, and
any unused remainder is available to be carried forward. Owners of
Airport Development Zone Credits
The following credits have been repealed: pass-through entities are eligible for this credit.
Airport Development Zone Employment Expense Credit 800
Airport Development Zone Investment Cost Credit 801 If you did not use all of the available community revitalization
Airport Development Zone Loan Interest Credit 802 enhancement district credit on Schedule 6, line 3, the remaining credit
should be claimed on this line.
However, any previously approved yet unused credit is available to be
claimed. For more information, contact the Indiana Economic Development
Corporation, One North Capitol, Suite 700, Indianapolis, IN, 46204,
Enter the appropriate 3-digit code under line 6 if claiming any of these or visit their website at iedc.in.gov.
credits. See the Combined Limitation on page 43.
Note. See the Restriction for Certain Tax Credits - Limited to
One per Project and the Combined Limitation on page 43 for
Alternative Fuel Vehicle Manufacturer Credit 845
This credit has been repealed. However, any previously approved yet additional limitations.
unused credit is available to be claimed. Enter code 845 under line 6 if
claiming this credit. Enter code 808 under line 6 if claiming this credit.
See the Restriction for Certain Tax Credits – Limited to One per Project Economic Development for a Growing Economy –
and the Combined Limitation on page 43 for additional limitations. Nonresident Employees (EDGE-NR) 865
This credit is for incremental state income tax amounts that would
have been withheld on employees from reciprocal states if those
Indiana’s CollegeChoice 529 Education Savings Plan
employees had been subject to Indiana state tax withholding. Owners
Credit 837
You may be eligible for a credit for contributions made to Indiana’s of pass-through entities such as S corporations, partnerships, limited
CollegeChoice 529 education savings plan. Also, you may make liability companies, etc., are eligible for this credit. Unlike the EDGE
contributions to this fund for Indiana K-12 education purposes. While and EDGE-R credits, the EDGE-NR credit is a non-refundable credit.
there are many 529 college savings plans available both in Indiana and
nation-wide, only contributions made to this specific CollegeChoice This credit is administered by the IEDC. Contact them at One North
529 Education Savings Plan are eligible for this credit. Capitol, Suite 700, Indianapolis, IN 46204, via website at iedc.in.gov, or
by phone at (317) 232-8800.
For more information about this credit, see Income Tax Information
Bulletin #98 at www.in.gov/dor/files/reference/ib98.pdf. This plan is The approved credit must be reported on Schedule IN-OCC, found at
administered through the Indiana Education Savings Authority. More www.in.gov/dor/tax-forms/2022-individual-income-tax-forms. Make
information can be obtained online at www.in.gov/tos/iesa and at sure to enclose this schedule with your tax filing. If you are claiming
www.collegechoicedirect.com. See Schedule IN-529 at www.in.gov/ this credit as an owner of a pass-through entity such as S corporations,
dor/tax-forms/2022-individual-income-tax-forms to figure your partnerships, limited liability companies, etc., make sure to keep
credit. This schedule must be enclosed when claiming the credit. Schedule IN K-1 with your records as DOR can require you to provide
this information.
Enter code 837 under line 6 if claiming this credit. See the Combined
Limitation on page 43.
Page 38 IT-40 Booklet 2022
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Schedule 6: Offset Credits Continued Note. Schedule LIC must be enclosed if claiming this credit. Contact
the Indiana Economic Development Corporation, One North Capitol,
About Enterprise Zone Credits Suite 700, Indianapolis, IN, 46204, call (317) 232-8827, or visit their
Certain areas within Indiana have been designated as enterprise zones. website at iedc.in.gov for additional information.
Enterprise zones are established to encourage investment and job
growth in distressed urban areas. Visit www.aiez.org/#mem to look up Enter code 814 under line 6 if claiming this credit. Also, see the
contact information for a particular enterprise zone. Combined Limitation on page 43.
Sole proprietors who operate and/or invest in a business located in a zone Ethanol Production Credit 815
and owners of pass-through entities such as S corporations, partnerships, This credit has been repealed. However, any previously approved yet
limited liability companies, etc., are eligible to claim the enterprise zone unused credit is available to be claimed.
employment expense credit and/or the enterprise zone loan interest
credit. Contact the Indiana Economic Development Corporation, One Enter code 815 under line 6 if claiming this credit. See the Combined
North Capitol, Suite 700, Indianapolis, IN, 46204, or visit their website at Limitation on page 43 for additional limitations.
iedc.in.gov for more information about these credits.
Film and Media Production Tax Credit 869
Enterprise Zone Employment Expense Credit 812 Effective July 1, 2022, a credit is available for expenses incurred for
This credit is based on qualified investments made within Indiana. qualified film and media production expenses. The amount of the
It is the lesser of 10% of qualifying wages, or $1,500 per qualified taxpayer’s credit is equal to the taxpayer’s qualified film and media
employee, up to the amount of tax liability on income derived from production expenses multiplied by a percentage determined by the
the enterprise zone. Indiana Economic Development Corporation, but not more than 30%
of the expenses.
For more information see Income Tax Information Bulletin #66
at www.in.gov/dor/files/reference/ib66.pdf and Indiana Schedule Note. Certification for this credit must be obtained from the Indiana
EZ, Parts 1, 2 and 3 at www.in.gov/dor/tax-forms/enterprise-zone- Economic Development Corporation. See iedc.in.gov/indiana-
forms. Also, you may contact the Indiana Economic Development advantages/investments/film-and-media-tax-credit for further
Corporation, One North Capitol, Suite 700, Indianapolis, IN, 46204, information.
call (317) 232-8827, or visit their website at iedc.in.gov.
This credit must be reported on Schedule IN-OCC, found at www.
Note. Schedule EZ must be enclosed if claiming this credit. in.gov/dor/tax-forms/2022-individual-income-tax-forms. Make sure
to enclose this schedule with your tax filing.
Enter code 812 under line 6 if claiming this credit. Also, see the
Combined Limitation on page 43. Enclose the certification letter from the IEDC with the return,
otherwise the credit will be denied.
Enterprise Zone Investment Cost Credit 813
This credit is based on qualified investments made within Indiana. Foster Care Donations Credit 867
It can be up to a maximum of 30% of the investment, depending on Effective starting in taxable year 2022, a credit for donations to
the number of employees, the type of business and the amount of qualifying foster care organizations is available. The credit is 50%
investment in an enterprise zone. of the donation made to qualifying organizations, up to a maximum
of $10,000 per taxable year. In addition, no more than $2,000,000 in
For more information about this credit, see Income Tax Information credits can be awarded during a state fiscal year. See www.in.gov/
Bulletin #66 at www.in.gov/dor/files/reference/ib66.pdf, contact the dor/tax-forms/foster-care-credit-donation-information for further
Indiana Economic Development Corporation, One North Capitol, information regarding the application and approval process.
Suite 700, Indianapolis, IN, 46204, or visit their website at iedc.in.gov.
This credit must be reported on Schedule IN-OCC, found at www.
Note. See the Restriction for Certain Tax Credits - Limited to in.gov/dor/tax-forms/2022-individual-income-tax-forms. Make sure
One per Project and the Combined Limitation on page 43 for to enclose this schedule with your tax filing.
additional limitations.
Enclose the approval letter from the Department of Revenue with the
Enter code 813 under line 6 if claiming this credit. return, otherwise the credit will be denied.
Enterprise Zone Loan Interest Credit 814 Headquarters Relocation Credit 818
This credit can be for up to 5% of the interest received from all qualified Some or all of this credit may be available to be refunded. See below
loans made before January 1, 2018, for use in an Indiana enterprise zone. for more information.
For more information, and how to calculate this credit, see Income A business may be eligible for a credit if it meets one of two sets of
Tax Information Bulletin #66 at www.in.gov/dor/files/reference/ criteria. The first set of criteria (“first test”) is that the business meets
ib66.pdf and Indiana Schedule LIC at www.in.gov/dor/tax-forms/ all of the following:
enterprise-zone-forms.
IT-40 Booklet 2022 Page 39
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Schedule 6: Offset Credits Continued Report any recapture on the Credit Recapture Schedule IN-CR, and
Schedule 4, line 3, Recapture of certain Indiana offset credits. See
• Has an annual worldwide revenue of $50 million; instructions on page 28 for more information.
• Has at least 75 Indiana employees (for credits awarded before July
1, 2022); and Hoosier Business Investment Credit 820
• Relocates its corporate headquarters to Indiana. This credit is for qualified investments, which include the purchase
of new telecommunications, production, manufacturing, fabrication,
The second set of criteria (“second test”) is that the business meets processing, refining or finishing equipment. Owners of pass-through
either (1) or (2), meets (3), and meets (4) or (5): entities such as S corporations, partnerships, limited liability
1. Received at least $4 million in venture capital in the six months companies, etc., are eligible for this credit.
immediately preceding the business’s application for this tax credit.
2. Closes on at least $4,000,000 in venture capital not more than six This credit is administered by the Indiana Economic Development
months after submitting the business’s application for this tax credit. Corporation (IEDC), One North Capitol, Suite 700, Indianapolis, IN,
3. Has at least 10 Indiana employees (for credits awarded before July 46204. Visit the IEDC website at iedc.in.gov or call (317) 232-8800 for
1, 2022). additional information.
4. Relocates its corporate headquarters to Indiana.
5. Relocates the number of jobs equal to 80% of the business’s total Also, see Income Tax Information Bulletin #95 at www.in.gov/dor/
payroll during the immediately preceding quarter to an Indiana files/reference/ib95.pdf.
location.
Note. See the Restriction for Certain Tax Credits - Limited to
The credit may be as much as 50% of the cost incurred in relocating One Per Project and the Combined Limitation on page 43 for
the taxpayer’s headquarters. For more information (including additional limitations.
limitations on the credit and the application process), see Income Tax
Information Bulletin #97, available at www.in.gov/dor/files/reference/ The approved credit must be reported on Schedule IN-OCC, found at
ib97.pdf. This credit is administered by the IEDC. Contact them at www.in.gov/dor/tax-forms/2022-individual-income-tax-forms. Make
One North Capitol, Suite 700, Indianapolis, IN 46204, via website at sure to enclose this schedule with your tax filing. If you are claiming
iedc.in.gov, or by phone at (317) 232-8800. this credit as an owner of a pass-through entity such as S corporation,
partnership, limited liability company, etc., make sure to keep
Beginning with the 2022 tax year, this credit must be reported on Schedule Schedule IN K-1 with your records as DOR can require you to provide
IN-OCC, found at www.in.gov/dor/tax-forms/2022-individual-income- this information.
tax-forms. Make sure to enclose this schedule with your tax filing.
Hoosier Business Investment Credit – Logistics 860
Submit a copy of the certificate from the IEDC verifying the amount This credit is for qualified expenditures for certain logistics investments.
of tax credit for the taxable year with the return. Otherwise, the credit Owners of pass-through entities are eligible for this credit.
will be denied.
This credit is administered by the Indiana Economic Development
Enclose proof of the relocation costs as well as proof of employment Corporation (IEDC), One North Capitol, Suite 700, Indianapolis, IN,
of the minimum number of employees in Indiana and, if applicable, 46204. Visit the IEDC website at iedc.in.gov or call (317) 234-4046,
payroll in both Indiana and everywhere. See the Combined and get Income Tax Information Bulletin #95 at www.in.gov/dor/files/
Limitation on page 43 for additional limitations. reference/ib95.pdf for additional information.
Important. If the IEDC has granted a refundable credit under the Note. See the Restriction for Certain Tax Credits - Limited to
second test, see the instructions on page 31 for completing Schedule One Per Project and the Combined Limitation on page 43 for
5, line 9. Maintain the documentation provided to you that supports additional limitations.
the refundable portion of this credit as DOR may request it.
The approved credit must be reported on Schedule IN-OCC, found at
Historic Building Rehabilitation Credit 819 www.in.gov/dor/tax-forms/2022-individual-income-tax-forms. Make sure
This credit has been repealed. However, any previously approved yet to enclose this schedule with your tax filing. If you are claiming this credit
unused credit is available to be claimed. as an owner of a pass-through entity such as S corporations, partnerships,
limited liability companies, etc., make sure to keep Schedule IN K-1 with
Enter code 819 under line 6 if claiming this credit. See the Combined your records as DOR can require you to provide this information.
Limitation on page 43 for additional limitations.
Indiana’s Research Expense Credit 822
Important. The credit will need to be recaptured if, within five years Indiana has a research expense credit that is similar to the federal
of the completion of the project: credit for research and experimental expenses paid in carrying on your
• Ownership of the property, and/or trade or business in Indiana. Owners of pass-through entities such as S
• Additional modifications are undertaken to the property that do corporations, partnerships, limited liability companies, etc., are eligible to
not meet required standards. claim this credit. Enclose your Schedule IN K-1 to support your claim.
Page 40 IT-40 Booklet 2022
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Schedule 6: Offset Credits Continued For additional information regarding procedures for obtaining this
credit, contact the Indiana Economic Development Corporation, One
A completed Form IT-20REC must be kept with your records as DOR North Capitol, Suite 700, Indianapolis, IN 46204, call (317) 232-8800,
can require you to provide this information. Get Form IT-20REC at www. or visit their website at iedc.in.gov.
in.gov/dor/tax-forms/2022-corporatepartnership-income-tax-forms.
Note. See the Restriction for Certain Tax Credits - Limited to One
Enter code 822 under line 6 if claiming this credit. Also, see the per Project and the Combined Limitation on page 43 for additional
Combined Limitation on page 43. limitations. Enter code 824 under line 6 if claiming this credit.
Individual Development Account Credit 823 Military Base Investment Cost Credit 826
A credit is available for qualified contributions made to a community This credit has been repealed. However, any previously approved yet
development corporation participating in an Individual Development unused credit is available to be claimed. You must enclose approval
Account (IDA) program. Owners of pass-through entities such as S certification from IEDC or a letter of assignment with your return.
corporations, partnerships, limited liability companies, etc. may are
eligible to claim this credit. Enter code 826 under line 6 if claiming this credit. See the Combined
Limitation on page 43 for additional limitations.
The organization must have an approved program number from the
Indiana Housing and Community Development Authority (IHCDA) Military Base Recovery Credit 827
before a contribution qualifies for pre-approval. Applications for the This credit has been repealed. However, any previously approved yet
credit are filed through the IHCDA. unused credit is available to be claimed. You must enclose approval
certification from IEDC or a letter of assignment with your return.
S corporations and partnerships may take this credit and pass through
the unused portion to their shareholders and partners. Enter code 827 under line 6 if claiming this credit. See the Combined
Limitation on page 43 for additional limitations.
To request additional information about the definitions, procedures
and qualifications for obtaining this credit, contact: Indiana Housing Natural Gas Commercial Vehicle Credit 858
and Community Development Authority, 30 S. Meridian St., Suite This credit has sunset. No new credit will be allowed for vehicles
1000, Indianapolis, IN 46204, telephone number (317) 232-7777. placed in service after Dec. 31, 2016. However, any previously
approved yet unused credit is available to be claimed. This
Keep the approval certification from IEDC or letter of assignment with carryforward credit is available to owners of pass-through entities such
your records as DOR can require you to provide this information. as S corporations, partnerships, limited liability companies, etc.
Enter code 823 under line 6 if claiming this credit. Also, see the The carryforward portion of the previously approved credit must
Combined Limitation on page 43. be reported on Schedule IN-OCC, found at www.in.gov/dor/tax-
forms/2022-individual-income-tax-forms. Make sure to enclose this
Industrial Recovery Credit 824 schedule with your tax filing. If you are claiming this credit as an
This credit is based on a taxpayer’s qualified investment in a vacant owner of a pass-through entity, such as S corporations, partnerships,
industrial facility located in a designated industrial recovery site. If the limited liability companies, etc., make sure to keep Schedule IN K-1
Indiana Economic Development Corporation approves the application with your records as DOR can require you to provide this information.
and the plan for rehabilitation, you are entitled to a credit based on the
“qualified investment.” The minimum age for a facility to be eligible Note. See the Combined Limitation page 43 for additional limitations.
for this credit has been reduced from 20 years to 15 years. This credit
is available to owners of pass-through entities such as S corporations, Neighborhood Assistance Credit 828
partnerships, limited liability companies, etc. If you made a contribution or engaged in activities to upgrade areas
in Indiana, you may be able to claim a credit for this assistance.
Note. Except for in situations described in the next sentence, a Contact the Indiana Housing & Community Development Authority,
taxpayer is entitled to receive this credit only for a qualified investment Neighborhood Assistance Program, 30 S. Meridian, Suite 1000,
made before January 1, 2020. A taxpayer is entitled to receive a credit Indianapolis, IN 46204, telephone number (317) 232-7777 (800-872-
for a qualified investment made after December 31, 2019, and before 0371 outside Indianapolis), for more information.
January 1, 2030, if the taxpayer is awarded a credit under:
• An application approved by the Indiana Economic Development Owners of pass-through entities such as S corporations, partnerships,
Corporation (IEDC) before January 1, 2020; or limited liability companies, etc., are eligible for this credit.
• An agreement entered into by the taxpayer and IEDC before
January 1, 2021. Important. Do not report fees paid to your neighborhood association
on this line. They are not eligible for this credit.
Important. Any unused credit existing before Jan. 01, 2020, is still
eligible for carryforward for an unlimited number of years. Enter code 828 under line 6 if claiming this credit. Also, see the
Combined Limitation on page 43.
IT-40 Booklet 2022 Page 41
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Schedule 6: Offset Credits Continued Example 2. Quincy is an 8th grade teacher at an Indiana public school.
During the year he spent $314 for qualified supplies. He is eligible to
New Employer Credit 850 claim a $100 credit.
This credit has been repealed. However, any previously approved yet
unused credit is available to be claimed. Example 3. Chris and Pat are employed as teachers at an Indiana public
high school. They are filing a joint tax return. During the year Chris
Enter code 850 under line 6 if claiming this credit. See the Combined spent $74 for qualified supplies; Chris’s credit is $74. Pat spent $214 for
Limitation on page 43 for additional limitations. qualified supplies; Pat’s credit is $100 (limited to the lesser of the amount
Pat spent or $100). They will claim a $174 combined credit.
Public School Educator Expense Credit 861
If you are an eligible educator working for an Indiana school Important. Make sure to keep a copy of the expense receipts used to
corporation, you may be entitled to a credit for qualified expenses figure this credit as DOR can require you to provide this information
paid for certain classroom supplies. The credit can be as much as $100 at a later date.
($200 if married filing joint and both spouses meet the requirements,
but not more than $100 each). Note. Claiming an educator expense deduction on your federal tax
return in no way prohibits you from being eligible to claim this credit
You are an eligible educator if, during the taxable year, you are on your state tax return.
employed as a Kindergarten -12 Indiana public school:
• Teacher Enter code 861 under line 6 if claiming this credit. See the Combined
• Librarian Limitation on page 43.
• Counselor
• Principal Redevelopment Tax Credit 863
• Superintendent You may be eligible for a credit if you make a qualified investment for
the redevelopment or rehabilitation of real property located within a
Public school means a school maintained by an Indiana school qualified redevelopment site.
corporation, and includes charter schools. Private schools, parochial
schools and homeschools are not public schools. This credit is administered by the Indiana Economic Development
Corporation (IEDC), One North Capitol, Suite 700, Indianapolis, IN,
Qualified expenses are amounts you paid or incurred during the tax 46204. Visit the IEDC website at iedc.in.gov or call (317) 232-8800 for
year for certain classroom supplies, which include books, supplies, additional information.
computer equipment (including related software and services),
other equipment, and supplementary materials that you use in the The approved credit must be reported on Schedule IN-OCC, found
classroom. For courses in health and physical education, expenses for at www.in.gov/dor/tax-forms/2022-individual-income-tax-forms.
supplies are qualified expenses only if related to athletics. Make sure to enclose this schedule with your tax filing. Also, see the
Combined Limitation on page 43.
Non-qualified expenses are certain expenses not allowed when
figuring this credit. They include: Residential Historic Rehabilitation Credit 831
• Certain expenses for professional development courses related to A credit is available for the repair and rehabilitation of residential
the curriculum, or to the students, that the educator teaches. property that is listed on the Indiana Register of Historic Sites and
• COVID-19 protective items, such as face masks; disinfectant for Structures, is at least 50 years old, and will be used as your primary
use against COVID-19; hand soap; hand sanitizer; disposable residence. All work must meet the Secretary of the Interior’s Standards
gloves; tape, paint, or chalk to guide social distancing; physical for Rehabilitation of Historic Properties.
barriers (for example, clear plexiglass); air purifiers; and other
items recommended by the CDC to be used for the prevention of For more information about this credit, see Income Tax Information
the spread of COVID-19. Bulletin #87A at www.in.gov/dor/files/reference/ib87a.pdf. Also,
contact the Office of Community and Rural Affairs at One North
Reimbursements. You must reduce your expenses for the qualified Capitol, Suite 600 Indianapolis, IN 46204-2027, call (317) 233-3762, or
supplies by any reimbursements you received that were not included visit www.in.gov/ocra.
in box 1 of your Form W-2.
Enter code 831 under line 6 if claiming this credit. Also, see the
Example 1. Jonah spent $40 for qualified supplies; he was reimbursed Combined Limitation on page 43.
for $30 out of petty cash, none of which was included on his W-2. He
will claim the $10 difference as a credit. Riverboat Building Credit 832
This credit has been repealed. However, any previously approved yet
Figure the credit. The amount of the credit is the lesser of: unused credit is available to be claimed.
• The total amount paid for qualified supplies, less any
reimbursements for those qualified supplies not included on line Enter code 832 under line 6 if claiming this credit. See the Combined
1 of your W-2, or Limitation below for additional limitations.
• $100.
Page 42 IT-40 Booklet 2022
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Schedule 6: Offset Credits Continued Apply online through the IEDC’s website at iedc.in.gov or call (317)
232-8800 for more information.
School Scholarship Credit 849
A credit is available for donations to certain scholarship-granting Enclose the certification letter from the IEDC with the return,
organizations (SGOs). The amount of a taxpayer’s credit is equal otherwise the credit will be denied.
to 50% of the amount of the contribution made to the SGO for a
school scholarship program. In some cases, the department may Restriction for Certain Tax Credits - Limited to One
round the credit down to the nearest dollar if the department receives Per Project
information that the credit should be the amount as rounded down. A taxpayer may not be granted more than one credit for the same
project. The credits that are included are the alternative fuel vehicle
While there are no limits to how much a donor can contribute to a manufacturer credit, community revitalization enhancement district
qualified SGO, the entire tax credit program cannot award more than credit, enterprise zone investment cost credit, Hoosier business
$18.5 million in credits per state fiscal year of July 1, 2022 – June 30, 2023. investment credit, industrial recovery credit, and the venture capital
investment credit. Apply this restriction first when figuring your
To qualify for the credit, you must make a contribution to a scholarship credits. Then apply the Combined Limitation below.
granting organization that is certified by Department of Education.
Visit the Indiana Department of Education’s website www.in.gov/ Combined Limitation
doe/students/indiana-choice-scholarship-program for additional There is one final limitation if you have more than one credit to
information. be entered on lines 4 through 7 of Schedule 6. These credits, when
combined, cannot be greater than the state adjusted gross income tax
The approved credit must be reported on Schedule IN-OCC, found shown on Form IT-40 line 8; if they are, adjust the amounts before you
at www.in.gov/dor/tax-forms/2022-individual-income-tax-forms. enter them. This includes any credits reported on Schedule IN-OCC,
Make sure to enclose this schedule with your tax filing. Also, see the and carried to line 7 of Schedule 6.
Combined Limitation below.
How to Adjust the Amount of Credit to Enter (Examples)
Venture Capital Investment Credit 835 Example. Miranda is eligible to claim both a $200 College Credit and a
A taxpayer that provides qualified investment capital to a qualified $300 Credit for Taxes Paid to Other States, for a $500 total amount of
Indiana business may be eligible for this credit. offset credits. Her state adjusted gross income tax due (IT-40, line 8)
is $360. Since her combined credits are $140 more than her state tax
Certification for this credit must be obtained from the Indiana due, she should reduce the last entry (the $300 Credit for Taxes Paid
Economic Development Corporation Development Finance Office, to Other States) by the $140 difference to $160. She will enter the full
VCI Credit Program, One North Capitol, Suite 700, Indianapolis, IN $200 College Credit on Schedule 6, line 4, and the $160 limited Credit
46204, telephone number (317) 232-8800, or visit iedc.in.gov. for Taxes Paid to Other States on line 5.
Beginning with the 2020 tax year, this credit must be reported on Example. Matthew has a $500 Indiana College Choice 529 Savings
Schedule IN-OCC, found at www.in.gov/dor/tax-forms/2022- Plan Credit and a $600 Industrial Recovery Credit. His state adjusted
individual-income-tax-forms. Make sure to enclose this schedule with gross income tax due (IT-40, line 8) is $700. He will report the full
your tax filing. If you are claiming this credit as an owner of pass- $500 Indiana College Choice 529 Savings Plan Credit on Schedule 6,
through entity such as S corporation, partnership, limited liability line 6a, and enter $200 of the Industrial Recovery Credit on line 6b. He
company, etc., make sure to keep Schedule IN K-1 with your records will carry the $400 remaining unused Industrial Recovery Credit over
as DOR can require you to provide this information. to next year’s tax return.
Note. See the Restriction for Certain Tax Credits - Limited to One per
Project and the Combined Limitation below for additional limitations.
Schedule 7: Additional Required
Venture Capital Investment Credit – Qualified Indiana Information
Investment Fund 868
A taxpayer who provides qualified investment capital (either debt or equity Line 1 – Federal Filing Information
capital) to a qualified Indiana investment fund may be eligible for this credit. You must place an “X” in the “yes” or “no” box to answer the question:
“Are you filing a federal income tax return for 2022?”
Note. Certification for this credit must be obtained from the Indiana
Economic Development Corporation, Development Finance Office, VCI Line 2 – Out-Of-State Income Information
Credit Program, One North Capitol, Suite 700, Indianapolis, IN 46204. If you and/or your spouse worked in Illinois, Kentucky, Michigan,
Ohio, Pennsylvania and/or Wisconsin during 2022, complete this area.
This credit must be reported on Schedule IN-OCC, found at www. Enter the salary, wage, tip and/or other compensation income from
in.gov/dor/tax-forms/2022-individual-income-tax-forms. Make sure those states in the appropriate boxes and the 2-digit code number for
to enclose this schedule with your tax filing. the appropriate state in the boxes. Find the 2-digit code number on the
chart in the next column.
IT-40 Booklet 2022 Page 43
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Schedule 7: Additional Required Information Continued Note. If the taxpayer and/or spouse died before 2022, or after Dec. 31,
2022, but before filing his or her tax return, do not enter his/her date
State Use Code # State Use Code # of death in this box.
Illinois 94 Ohio 97 Line 7 – Telephone Number and Email Address
Kentucky 95 Pennsylvania 98 Information
If this is a joint return, both you and your spouse must sign and date
Michigan 96 Wisconsin 99 the tax return. Please enter your daytime telephone number so we can
call you if we have any questions about your tax return. Also, enter your
Note. This entry is for information purposes only, and will not change email address if you would like us to be able to contact you by email.
your refund or the amount you may owe.
Personal Representative Information
Line 3 – Extension of Time to File Information Typically, DOR will contact you (and your spouse, if filing jointly) if there
Place an “X” in the box on line 3a if you have a federal extension of are any questions or concerns about your tax return. If you wish to allow
time to file (you filed federal Form 4868, Form 2350, or made an DOR to discuss your tax return with someone else (e.g. the person who
online extension payment). Place an “X” in the box on line 3b if you prepared it, a relative or friend, etc.), you will need to complete this area.
have an Indiana extension of time to file (you filed Form IT-9 or made
an online extension payment). First, you must check the “Yes” box, which follows the sentence, “I
authorize DOR to discuss my tax return with my personal representative.”
Line 4 – Farmers and Fishermen
Farmers and fishermen have special filing considerations. If at least Next, enter the name of the individual you are designating as your
two-thirds (2/3) of your gross income is from farming or fishing, personal representative, that person’s telephone number, and that
mark the box provided on Schedule 7, line 4. This will make sure person’s complete address.
that a penalty for the underpayment of estimated tax is not assessed
provided you have followed through by: If you complete this area, you are authorizing DOR to be in contact with
• Paying all your estimated tax on or by Jan. 17, 2023, and filing someone other than you concerning information about this tax return.
your Form IT-40 by April 18, 2023, or
• Filing your Form IT-40 by March 1, 2023, and paying all the tax Note. If you are due a refund, it will be paid to you (and your spouse,
due at that time. You are not required to make an estimated tax if filing jointly) even if you designate a personal representative.
payment if you use this option.
You may decide at any time to revoke the authorization for DOR to
Important. If you have checked the box, you must keep the completed speak with your personal representative. You will need to provide a
Schedule IT-2210 with your records as DOR may request it at a later date. signed statement indicating you revoke this authorization. Include
your name, Social Security number and the year of your tax return.
Line 5 – Non- or Partially- Responsible Spouse Mail your statement to Indiana Department of Revenue, P.O. Box 40,
Place an X in this box if you are a spouse who claims to not be liable Indianapolis, IN 46206-0040.
for all or part of a tax liability because the remaining liability is that of
the other spouse. You may be filing as a spouse who claims to not be Paid Preparer Information
liable for all or part of a tax liability if: Have your paid preparer complete this area (even if the paid preparer
• You have a tax liability reported on a joint return for which you is the same individual designated as your personal representative). The
are not responsible; paid preparer must provide:
• You have a tax liability reported on a joint return, but you are • The name of the firm that he/she represents,
responsible only for a portion of the liability; or • The preparer’s tax identification number (PTIN), and
• You have received an assessment from the Indiana Department of • The firm’s address or his/her address if self-employed.
Revenue and you are not liable for all or part of the assessment
because the assessment arises from the tax attributable to your spouse. Opt-Out Designation
There are many benefits to electronic filing, which include:
If filing as a non- or partially- responsible spouse who claims to not • Elimination of math errors
be liable for all or part of a tax liability, complete and submit Schedule • Faster refunds
IN-40PA (www.in.gov/dor/tax-forms/miscellaneous-individual-
forms), along with any supporting documentation. Paid preparers are required to electronically file all Indiana individual
income tax returns if they prepare more than 10 tax returns annually.
Line 6 – Date of Death If you use a paid preparer and do not want your tax return to be filed
If the taxpayer and/or spouse died during 2022, and this return is electronically, you must complete a state Form IN-OPT. This form
being filed with his/her name on it, make sure to enter the month requires your signature (and your spouse’s, if filing jointly), and must
and day of death in the appropriate box. For example, a date of death be maintained by your paid preparer with his or her records. Get Form
of Jan. 9, 2022, would be entered as 01/09/2022. See instructions IN-OPT at www.in.gov/dor/tax-forms/2022-individual-income-tax-
beginning on page 6 for more information. forms for more information.
Page 44 IT-40 Booklet 2022
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County Tax Instructions Exception. If you worked in any of the following states on Jan. 1, 2022,
enter their two-digit code number (instead of 00):
Make sure you keep a copy of your completed tax return, including
all required enclosures, such as W-2s and schedules.
State Use Code # State Use Code #
Illinois 94 Ohio 97
County Tax Instructions Kentucky 95 Pennsylvania 98
If you live or work in an Indiana county as of January 1 of the tax year,
you will probably owe county tax. Complete the county tax Schedule Michigan 96 Wisconsin 99
CT-40 to figure if you do owe, and how much it will be.
Military Personnel
County Where You Lived Defined If you were stationed in Indiana, your county of residence is the
The county where you lived is the county where you maintained your county where you lived on Jan. 1 of the year you entered the military
home on Jan. 1, 2022. If you had more than one home in Indiana on service. If, on Jan. 1, 2022, you were single and stationed outside
this date, then your county of residence as of Jan. 1, 2022, was: Indiana, or you were stationed outside Indiana and your family was
• Where you were registered to vote. If this did not apply, then your with you, write county code “00” (out-of-state) in all the county boxes
county of residence was on Form IT-40 (you won’t owe a county tax).
• Where your personal automobile was registered. If this did not
apply, then your county of residence was If, however, you maintained your home in an Indiana county and/or
• Where you spent the majority of your time in Indiana during 2022. your spouse and family were still living in an Indiana county on Jan.
1, 2022, you are considered to be a resident of that county and will be
Enter the county two-digit code for the county where you lived on Jan. subject to county tax.
1, 2022, in the area beneath the name and address area on Form IT-40.
Find your county two-digit code number on the back of Schedule CT-40. Retired Persons, Homemakers or Unemployed
If you were retired, a homemaker, or were unemployed on Jan. 1,
Did You Move During the Year? 2022, put your county of residence two-digit code number in both
If you moved your residence to a different Indiana county during the the Indiana County where you lived and Indiana County Where You
year, but after Jan. 1, 2022, the county where you lived for tax purposes Worked boxes on Form IT-40. Do not write the word “Retired,”
will not change until next year. “Homemaker” or “Unemployed” over the boxes.
Example. William was a lifelong Scott County resident until he moved Special Note to Married Taxpayers Filing a
to Martin County on March 15, 2022. He will figure Scott County tax Joint Return
when filing his 2022 state tax return (he lived there on Jan. 1, 2022). If you lived in different counties on Jan. 1, 2022, both of you need
If he still lived in Martin County on Jan. 1, 2023, he will figure Martin to figure your county tax separately. See Schedule CT-40 Line 1
County tax when filing his 2023 state taxes. Instructions below for details on how to do this.
County Where You Worked Defined
The county where you worked (county of principal employment) is Schedule CT-40: Line-by-Line Instructions
the county where your main place of business was located or where
your main work activity was performed on Jan. 1, 2022. If you began Line 1
working in another county after Jan. 1, 2022, the county where you If you:
worked for reporting purposes will not change until next year. Enter • Are filing a single return, enter on line 1A the amount from Form
the two-digit code number for the county where you worked in the IT-40, line 7.
area beneath the name and address area on Form IT-40. • Are filing a joint return and you both lived in the same county on
Jan. 1, 2022, enter on line 1A the amount from Form IT-40, line 7.
Example. Jessie worked in Marion County on Jan. 1, 2022. She quit Leave Column B blank.
that job and began a new one in Johnson County on Feb. 10, 2022. She • Are filing a joint return and you lived in different counties on Jan.
will enter the Marion County two-digit code (49) as the county where 1, 2022, enter each person’s share of the amount reported on line 7
she worked even though she changed jobs during the year. of Form IT-40. See how to do this in the following example.
If you had more than one job on Jan. 1, 2022, your principal place of Following are two examples for when a taxpayer and spouse file
employment is the job where you worked the most hours and earned married filing jointly but live in different counties on January 1 of
the most income. the tax year.
If, on Jan. 1, 2022, your county of principal employment was not in Example. Jacob and Becca married in 2022 and are filing a joint return.
Indiana, write county code “00” (out-of-state) in the County Where On Jan. 1, 2022, Jacob lived in Greene County and Becca lived in
You Worked box on the front of the IT-40. Clay County. Their individual share of the $39,080* amount reported
on line 7 of their IT-40 is to be reported on Schedule CT-40 between
Column A and Column B in the following way:
IT-40 Booklet 2022 Page 45
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County Tax Instructions Continued
Column A Column B IT-40
Column A Column B IT-40 Breakdown Sam Molly Line 7
Breakdown Jacob Becca Line 7 Wages $49,000 $45,000 $94,000
Wages 23,000 21,000 44,000 Property tax deduction -1,250 -1,250 -2,500
Interest (joint account) + 40 + 40 + 80 Subtotal $47,750 $43,750 $91,500
Renter’s deduction - 1,500 -1,500 -3,000 Exemptions -1,000 -3,500 -4,500
Subtotal 21,540 19,540 41,080 Totals $46,750 $40,250 $87,000*
Exemption -1,000 -1,000 -2,000
Sam will enter $46,750 on line 1A and Molly will enter $40,250 on
Totals 20,540 18,540 39,080* line 1B.
Jacob will enter $20,540 on line 1A and Becca will enter $18,540 on line 1B. Line 2
Find the county where you lived on Jan. 1, 2022, on the 2022 Indiana
Use of exemptions when separating income. County Income Tax Rates and County Codes chart located on the back
Each spouse must use their own: of Schedule CT-40. Find the County Tax Rate on that county row and
• Personal $1,000 exemption (included on Schedule 3, line 1), enter it here.
• Age 65 or older exemption (included on Schedule 3, line 4),
• Age additional age 65 exemption (included on Schedule 3, line 5), If you are filing a single return or a joint return where you both lived
when figuring their share of net income subject to county tax. in the same county on Jan. 1, 2022, enter on line 2A the county tax
Additional exemptions for dependents should be divvied up in whole* rate. Leave line 2B blank.
in a way that provides the most benefit to the individuals. This usually
results with the individual with the higher county tax rate using all of If you are filing a joint return and you lived in different counties on
the dependent exemptions when figuring county tax. Jan. 1, 2022:
• Enter on line 2A your county tax rate from the county tax rate
*Exemptions must be used in whole. For example, a $1,000 exemption chart.
may not be separated into $700 to be used by one spouse, with the • Enter on line 2B your spouse’s county tax rate from the county tax
remaining $300 to be used by the other spouse. The full $1,000 must rate chart.
be used by one spouse only.
Line 4
Note. The total amount of exemptions used to reduce income may not Add the amounts from line 3, Columns A and B and enter the result
be greater than the total amount of exemptions reported on Schedule here. If you were a Perry County resident on Jan. 1, 2022, and worked
3, line 6. in the Kentucky counties of Breckinridge, Hancock and/or Meade,
review Lines 5 and 6 instructions. Otherwise, skip to line 7.
Example. Sam and Molly married in 2022 and are filing a joint return.
On Jan. 1, 2022, Sam lived in County A, which has a resident county Lines 5 and 6
tax rate of .01. Molly lived in County B, which has a resident county If you:
tax rate of .025. They claim their three-year old son Sebastian as a • Were a Jan. 1, 2022 Perry County resident,
dependent. Their total exemptions are $4,500 ($1,000 each for Sam, • Worked in the Kentucky counties of Breckinridge, Hancock and/
Molly and Sebastian, plus the $1,500 additional dependent exemption or Meade; and
for Sebastian). Sam’s wage income is $49,000; Molly’s is $45,000. They • The income from those counties was subject to either a Kentucky
claimed a $2,500 homeowner’s property tax deduction. county income tax or a local income tax for a locality in those
counties,
Molly will use all of the exemptions except for Sam’s $1,000 personal review the following instructions. Otherwise, skip these lines and go
exemption when figuring her share of income subject to county tax to line 7.
since she has the higher county tax rate.
Line 5 – If the Kentucky counties of Breckinridge, Hancock and/or
Their individual share of the $87,000* state taxable income reported Meade, or a locality located within these counties figured a locality tax
on line 7 of their Form IT-40 is to be reported on Schedule CT-40 on your income, enter the amount of that income here.
between Column A and Column B in the following way:
Line 6 – Multiply the amount on line 5 by .0181 and enter the result
here. Continue to line 7.
Line 7
Subtract any entry on line 6 from the amount on line 4. Enter the
result here and on line 9 of Form IT-40.
Page 46 IT-40 Booklet 2022
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NOTES:
IT-40 Booklet 2022 Page 47
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NOTES:
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Government or Civic Group Capital Contribution
Index to Instructions
Deduction.................................................................................. 19
Human Services Deduction ............................................................. 19
2022 Changes ............................................................................................ 3 Indiana Lottery Winnings Annuity Deduction ............................. 20
Indiana Net Operating Loss Deduction ......................................... 17
A Indiana-only Tax-exempt Bonds Deduction ................................. 20
Add-Backs Indiana Partnership Long-Term Care Policy
Bonus Depreciation Add-Back ........................................................ 12 Premiums Deduction .............................................................. 20
Conformity Add-Back Infrastructure Fund Gift Deduction ............................................... 20
Conformity Add-Back – Negative Entry..................................... 13 Interest on U.S. Government Obligations Deduction .................. 16
Conformity Add-Back – Positive Entry ...................................... 13 Nontaxable Portion of Unemployment Compensation ............... 18
Discontinued Add-Backs: How and When to Report a Olympic/Paralympic Medal Winners Deduction ......................... 21
Final Catch-Up Modification ................................................. 14 Private School/Homeschool Deduction ......................................... 17
Employer Student Loan Payment Add-Back ................................. 13 Qualified Patents Income Exemption Deduction ......................... 22
Excess Federal Interest Deduction Modification .......................... 14 Railroad Unemployment and Sickness Benefits Deduction ........ 22
Federal Repatriated Dividend Deduction Recovery of Deductions ................................................................... 22
Add-Back ................................................................................... 14 Repayment of Previously Taxed Income Deduction .................... 22
Meal Deduction Add-Back .............................................................. 13 State Tax Refund Reported on Federal Return .............................. 16
Net Operating Loss Add-Back ......................................................... 12 Taxable Social Security and/or Railroad Retirement
OOS Municipal Obligation Interest Add-Back ............................. 12 Benefits Deduction................................................................... 16
Qualified Preferred Stock ................................................................. 14 Dependents, Definitions and Special Rules for .......................... 25–27
Section 179 Expense Add-Back ....................................................... 13 District Office, Visit ................................................................................ 3
Student Loan Discharge Add-Back ................................................. 13
Treatment of Previously Discontinued Add-Back ........................ 12 E
Adoption Credit .................................................................................... 31 Employer Student Loan Payment Interest Deduction ..................... 19
Adoption Credit Carryforward Worksheets ............................... 32–33 Exemptions
Amended (Corrected) Tax Return ....................................................... 4 Additional Exemption for Age 65 or Older ................................... 24
Amount Due ......................................................................................... 11 Age 65 or Older or Blind .................................................................. 24
Annual Public Hearing .......................................................................... 4 Dependent Exemptions, Additional ............................................... 24
Extension
C Extension Filing Deadline .................................................................. 8
Combined Limitation .................................................................... 36, 43 Extension of Time to File ................................................................... 7
County Tax Instructions ................................................................ 45–46 Extension of Time to File Information ........................................... 44
County Where You Lived Defined ..................................................... 45 Form IT-9 ............................................................................................. 8
County Where You Worked Defined ................................................. 45 Penalty and/or Interest ....................................................................... 8
Credits Where to Report Your Extension Payment ...................................... 8
Economic Development for a Growing Economy
Credit (EDGE) .......................................................................... 31 F
Economic Development for a Growing Economy Farmers and Fishermen ....................................................................... 44
Retention Credit (EDGE-R) ................................................... 31 File Your Return
Estimated Tax Paid ............................................................................ 28 Electronic Filing Program .................................................................. 4
Headquarters Relocation Credit ...................................................... 31 INfreefile ............................................................................................... 4
Indiana’s Earned Income Credit (EIC) ........................................... 29 Foreign Country Code ........................................................................... 5
Indiana State and County Tax Withheld ........................................ 28
Lake County (Indiana) Residential Income Tax Credit ............... 29 H
Unified Tax Credit for the Elderly ................................................... 28
Help With Your Return
D Information Line ................................................................................. 4
Internet Address .................................................................................. 4
Deceased Taxpayer Local Help ............................................................................................ 4
Date of Death ..................................................................................... 44 Telephone ............................................................................................. 4
Refund Check for a Deceased Individual ......................................... 7 Homeowner’s Residential Property Tax Deduction ......................... 15
Signing the Deceased Individual’s Tax Return ................................ 7
Deductions I
Civil Service Annuity Deduction .................................................... 18
Important Information About Possible Year-End
COVID-related Employee Retention Credit Disallowed
Federal Legislation ................................................................... 12
Expenses Deduction ................................................................ 19
Indiana Education Scholarship Account Deduction ....................... 20
Disability Retirement Deduction .................................................... 19
Indiana Enrichment Scholarship Account Deduction .................... 20
Enterprise Zone Employee Deduction ........................................... 19
Indiana Nongame Wildlife Fund ........................................................ 34
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Individual Taxpayer Identification Number (ITIN) .......................... 5 Retired Persons, Homemakers or Unemployed ............................... 45
Information Bulletins, Obtaining ......................................................... 3 Returned Checks and Payments ......................................................... 11
Interest ................................................................................................... 11 Rounding Required ................................................................................ 5
L S
Losses ...................................................................................................... 5 Sales/Use Tax Worksheet ..................................................................... 28
Schedule 1: Add-Backs .................................................................. 12–15
M Schedule 2: Deductions ................................................................. 15–22
Married Filing Requirements Schedule 3: Exemptions ................................................................. 23–24
Married Filing Jointly ......................................................................... 5 Schedule 4: Other Taxes ...................................................................... 27
Married Filing Separately ................................................................... 5 Schedule 5: Credits ......................................................................... 28–34
Married Persons Who Live Apart Filing Status ............................... 5 Schedule 6: Offset Credits ............................................................. 35–43
Military Family Relief Fund ................................................................ 34 Schedule 7: Additional Required Information ........................... 43–45
Military Personnel Schedule IN-DEP ........................................................................... 24–25
Military Address .................................................................................. 5 Schedule IN-DEP-A ............................................................................. 25
Military Personnel, County .............................................................. 45 Schedule IN-DONATE ........................................................................ 34
Military Retirement Income and/or Survivor’s Schedule IN-W: Indiana Withholding Statements .......................... 34
Benefits Deduction............................................................. 16, 20 Schedules, Enclosing .............................................................................. 6
Military Service Deduction .............................................................. 16 Social Security Number ................................................................... 5, 27
National Guard and Reserve Component Members
T
Deduction............................................................................ 16, 21
Residency .............................................................................................. 7 Tax Forms, Obtaining ............................................................................ 3
Move During the Year .......................................................................... 45 Taxpayer Advocate ............................................................................... 11
Moving? ................................................................................................... 4 Taxpayer Refund, Additional Automatic .......................................... 31
N U
Negative Entries ...................................................................................... 5 Unemployment Compensation Worksheet ...................................... 18
Non- or Partially- Responsible Spouse .............................................. 44
W
O
W-2s, Enclosing ...................................................................................... 6
Offset Credits Wagering Taxes ..................................................................................... 12
College Credit .................................................................................... 36 Website ..................................................................................................... 4
Community Revitalization Enhancement District Credit ........... 35 What if You Can’t File on Time? ........................................................... 7
Credit for Local Taxes Paid Outside of Indiana ............................ 35 When Should You File?.......................................................................... 7
Credit for Taxes Paid to Other States .............................................. 36 Where to Mail Your Tax Return ......................................................... 12
Other Credits ............................................................................... 38–43 Which Indiana Tax Form Should You File? ........................................ 3
Other Local Credits ........................................................................... 36 Who Should File? ................................................................................... 6
Opt-Out Designation ........................................................................... 44
Order of Application ............................................................................ 36 Z
Out-Of-State Income Information ..................................................... 43 ZIP/Postal Code ..................................................................................... 5
P
Paid Preparer Information .................................................................. 44
Payment Options .................................................................................. 11
Penalty .................................................................................................... 11
Personal Representative Information ................................................ 44
Public K – 12 Education Fund ............................................................ 34
R
Refund
Direct Deposit .................................................................................... 10
Refund Offsets ................................................................................... 10
Statute of Limitations for Refund Claims ....................................... 10
When to Expect Your Refund .......................................................... 10
Where’s Your Refund? ....................................................................... 10
Renter’s Deduction ............................................................................... 15
Restriction for Certain Tax Credits .............................................. 36, 43
IT-40 Booklet 2022 Page 51
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• • • • • • • • • • • • • • This IT-40 Indianapolis, IN 46204-2253 100 North Senate Avenue Indiana Department of Revenue
Statements Schedule IN-W, Indiana Withholding Payment Form Form ES-40 Estimated Tax Credit Schedule IN-EIC, Earned Income Dependent Information Schedule IN-DEP-A, Adopted Dependent Child Information Information and Additional Schedule IN-DEP, Dependent tax rates Schedule CT-40, County Tax with Information Schedule 7 Additional Required Schedule 6 Offset Credits DONATE Schedule 5 Credits/Schedule IN- Schedule 4 Other Taxes Schedule 3 Exemptions Schedule 2 Deductions Schedule 1 Add-Backs Form IT-40 and Instructions
booklet contains:
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