Enlarge image | 01 0000000000111111111122222222223333333333444444444455555555556666666666777777777788888 1234567890123456789012345678901234567890123456789012345678901234567890123456789012345 04 Schedule IN-2058SP Indiana Department of Revenue Enclosure State Form 54259 Sequence No. 23 05 (R15 / 9-24) Nonresident Military Spouse 2024 06 Earned Income Deduction 07 Enclose this schedule with the filing of Form IT-40PNR. 08 09 Servicemember’s Spouse’s 10 Military servicemember’s spouse’s name Social Security Number 11 12 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 999 99 9999 13 14 Servicemember’s 15 Military servicemember’s name Social Security Number 16 17 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 999 99 9999 18 19 20 21 Part 1: Figure Your Deduction 22 23 Military spouse’s earned income from Indiana sources Round all entries 24 25 1. Servicemember’s spouse’s wages as reported on Line 1B or 2B of Indiana’s Schedule A _______ 1 99999999999.00 26 27 2. a. Business income from line 7B of Indiana’s Schedule A ___ 2a 99999999999.00 28 29 b. Servicemember’s spouse’s portion of line 2a ________________________________________ 2b 99999999999.00 30 31 3. Add lines 1 and 2b. This is the servicemember’s spouse’s earned income from Indiana 32 sources. Enter on Indiana’s Schedule C under line 11. Identify by using 3-digit code 625 _______ 3 99999999999.00 33 34 35 36 37 Part 2: Additional Information 38 39 1. Enter 2-letter code for your state of domicile (e.g., IN for Indiana) XX 40 41 2. Are you including the income from line 3 on your state of domicile’s tax return? Yes X No X N/A X 42 43 If you answered No or N/A, explain 44 45 46 47 48 Note. Pursuant to IC 6-8.1-7-1(b), information provided on this form may, upon request, be disclosed to the tax department in your state 49 of domicile. Any information disclosed will remain confidential and used solely for tax collection purposes. 50 51 You must enclose a copy of the servicemember’s military W-2 when claiming this deduction. 52 53 54 55 56 57 58 59 60 61 62 *24100000000* 63 24100000000 64 65 66 |
Enlarge image | Instructions for the Nonresident Military Spouse Earned Income Deduction Based on provisions within the Military Spouse Residency Relief Line 2. Enter the amount of the military servicemember’s Act of 2009 (Public Law No. 111-97), a spouse of a nonresident spouse’s Indiana-source sole proprietorship income reported on military servicemember may not owe tax to Indiana on earned Schedule A, line 7B. DO NOT include any servicemember’s sole income from Indiana sources. proprietorship income included on line 7B. The spouse may claim Indiana-source earned income* as a Example. The same set of circumstances as the example above, deduction if the spouse has elected the same state of residence except Tom has $27,000 sole proprietorship income from Indiana as the military servicemember under federal law or: sources, and no wage income. He reported the $27,000 income • Indiana is not the military servicemember’s state of domicile on Schedule A, line 7B. Mary did not have any sole proprietor as reported on the servicemember’s Form DD-2058; income. Tom should enter $27,000 on lines 2a and 2b. • The military servicemember and spouse are domiciliaries of the same state; Line 3. Add lines 1 and 2 and enter the total here. This is your • The military servicemember is in Indiana on military orders; deduction. Enter this amount on Indiana Schedule C: Deductions, • Either: under line 11. Identify this deduction by using the 3-digit code ο The military servicemember’s spouse is in Indiana in number 625. order to live with the servicemember, and resides at the same address; or Important. If any of the conditions above change, you will no ο The military servicemember and spouse live together longer be eligible for the deduction of Indiana-source earned in a state other than Indiana, but the servicemember’s income. Only the income earned up to the time the condition spouse works in Indiana; and changed will be exempt. • The Indiana-source income is included on Indiana Schedule A on line 1B, 2B and/or 7B. Example. Mary was assigned to a post overseas, and left Indiana on October 1; Tom remained in Indiana. $24,000 of Tom’s $32,000 *Earned income for purposes of this deduction includes: total wage income was earned before October 1. His deduction is • Wages, salaries, tips and other compensation from Indiana limited to $24,000. sources, and/or • Income from a sole proprietorship (reported on federal Part 2 – Additional Information Schedule C or C-EZ) from Indiana sources. Line 1. Enter the 2-letter code of the spouse’s state of domicile in the box. Important. You must enclose a copy of the military servicemember’s W-2 when claiming this deduction. Example. Tom should enter KS for Kansas. Part 1 – Figure Your Deduction Line 2. Tell us if you are including the Indiana-source earned Line 1. Enter the amount of the military servicemember’s income on your state of domicile’s tax return. spouse’s Indiana-source earned wages, salaries, tips and other compensation reported on Schedule A, line 1B or line 2B. DO Example. Tom and Mary are domiciliaries of Kansas. They filed a NOT include any servicemember’s income reported on these tax return with Kansas, and included the Indiana-source income lines. on the tax return. Tom should check the Yes box. Example. Mary is a military servicemember. She is stationed Note. If you answered No or N/A to the question on line 2, include in Indiana, and her husband Tom resides with her in Indiana. an explanation. Her state of domicile on Form DD-2058 is Kansas. Tom’s state of domicile is also Kansas. Tom meets the requirements to be Final Thoughts eligible to claim this deduction. He earned $32,000 wage income Remember, you must enclose a copy of the military while working in Indiana during the year, and included that income servicemember’s W-2 when claiming this deduction. Otherwise, on Schedule A, Line 1B. He should enter $32,000 on line 1. the deduction will be denied. Get Income Tax Information Bulletin #27 at https://www.in.gov/dor/files/ib27.pdf for additional information. *24100000000* 24100000000 |