Indiana State Income TaxesYour federal state income tax return and your Indiana state income tax return are due on the same date, April 15th
This page:
• Lists basic Indiana state tax information
• Links to the major Indiana income tax forms
• Shows you how you can save time and money by e-filing
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Indiana state taxes at a glance:Tax Rate Range: Low - 3.4%; High - 3.4% Income Brackets: Flat Rate Number of Brackets: 1 Personal Exemptions: Single - $1,000; Married - $2,000; Dependents - $1,000; Standard Deduction: None Medical/Dental Deduction: None Federal Income Tax Deduction: None
Filing your Indiana state income tax returnFirst, the filing status on your Indiana state tax return has to be the same as on your federal tax return.
Furthermore, the deduction method used on your federal return must match the one used on your state return. Therefore, if you choose to itemize on your federal return, you must dot he same on your state tax return.
Indiana offers a few state tax credits. These are:
• the state and county withholding tax credit, • the college credit, and • the credit for taxes paid to other states.
Furthermore, Indiana offers the following state tax deductions:
• Governmental Obligations tax deduction • Indiana Real estate tax deduction • Lake county Residential tax deduction
Although most income is subject to Indiana state tax, your out-of state retirement income is not taxable in Indiana.
Capital gains, however, are taxed. The rate at which they are taxed is the same as the rest of your income
As a nonresident of Indiana working in Indiana, you may have to still pay state income tax. Check out the filing requirements for Indiana on the state's Department of Revenue website.
Finally, a lot of Indiana counties collect taxes too. A listing of these counties and the taxes they levy is located in the IT-40 Instruction manual.
Sidebar You can work on your Indiana tax return online while filing your federal return (you can work on it for free, and pay nothing until you are ready to file).
Note: if you are filing more than one state return, you must file a paper return for each additional state, as TurboTax for The Web only allows one state prep.
Indiana income tax formsThe main Indiana tax forms are:
IT-40 | 2006 Indiana Individual Income Tax Return| Instructions
Schedule 1 & 2 | Credits and Deductions
If you need Indiana income tax forms that are not listed here, you can download them from the Indiana tax forms site.
Or, just simply e-file!
Additional IN state taxes helpIf you need help with your federal tax return, start with our basic guide to tax filing.
For additional help with filing IN income tax returns, see the official site of the Indiana Department of Revenue.
State income tax info:
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