Indiana Tax Filing
How to File Your Indiana Taxes
Indiana tax returns have to be filed by April 18th.
There is a fixed tax rate of 3.4% placed on your federal adjusted gross income. Most of the state’s counties have other income taxes. You can found a list of the counties and the respective tax rates on the State of Indiana Department of Revenue website.
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Indiana Tax Forms
- Indiana Form IT-40X - Indiana Amended Individual Income Tax Return
- Indiana Tax Booklet - Indiana Income Tax Instruction Booklet
- Indiana Schedule A - Indiana Income/Loss, Proration & Adjustments to Income
- Indiana Form IN-EIC - Indiana's Earned Income Credit
- Indiana Form IT-9 - Indiana Application for Extension of Time to File
- Indiana Form IT-40 - Indiana Individual Resident Income Tax Return (Long)
- Indiana Schedule CT-40 - Indiana County Tax Schedule
- Indiana Schedule 6 - Indiana Offset Credits
- Indiana Schedules 3 & 4 - Indiana Exemptions and Other Taxes Schedules
- Indiana Form IT-40PNR - Indiana Individual Part-Year and Full-Year Nonresident Individual Income Tax Return
- Indiana Form IT-40RNR - Indiana Individual Reciprocal Non-resident Income Tax Return
- Indiana Schedule IT-2210 - Indiana Individual Underpayment of Estimated Tax
- Indiana Form IT-40EZ - Indiana Individual Resident Income Tax Return (Short)
- Indiana Schedule 5 - Indiana Credit Schedule
- Indiana Schedule IT-2210A - Indiana Annualized Schedule of Underpayment of Estimated Tax
Determine Your Residency Status
The amount of your taxes depends on your residency status, so check below to see which category you fall in.
You Are a Resident of Indiana
In order to be an Indiana resident, you need to have maintained your residence in Indiana during the whole past tax year. However, you don’t need to be in Indiana the whole time and can leave temporarily and still retain your residency status. Retired people can maintain their full residency, even if they are away for several months during the year. The conditions are that they have the intention of returning to Indiana, keep an Indiana driver’s license, and retain their right of vote in Indiana.
If you are a resident in Indiana and your gross income exceeded the total of your exemptions, you have to file a tax return with Indiana. You can use Form IT-40, or, if you meet certain criteria, Form IT-40EZ. You can use Form IT-40EZ if you have no dependents, your income comes only from Indiana and you don’t have any withholding credits.
You Are a Part-Year Indiana Resident
If you moved to or from Indiana during the past year, you are considered a part-year resident. If you earned income while you were a resident or if you earned income from an Indiana source when you were residing in a different state, you must file Form IT-40PNR. This form can be also used if you (including your spouse, in case you file jointly as a couple) were residing in Indiana for just some time of the year, and you don’t meet the requirements to file your tax return using Form IT-40 RNR.
You Are an Indiana Resident Who Works in a Different State
If you are an Indiana resident and work in a different state and that state taxed you, you can claim tax credits from Indiana. There are two categories of credits. First, one for local taxes that you paid to a county, town, city or other local authority and second, one for taxes you paid to a different state. To apply for local credits, fill out Line 1, for state credits, Line 5.
You have to keep in mind that if you worked in Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin, you do not need to file with these states, because of reciprocal agreements with Indiana. That is also why Indiana does not grant tax refunds for income earned in these states, so if your employer withholds taxes for a different state (Indiana excluded), you have to be sure that the employer releases that income.
If you work in Arizona, California, Oregon, or Washington D.C., you will also not be eligible for any credits from Indiana, as these states should not tax you at all. Make sure your employer does not hold taxes for any of these states, as Indiana will not credit you for taxes paid to these states in error.
If you work in Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, you will not be eligible for Indiana tax credits, since these states do not have any income tax. However, you will need to pay taxes in Indiana for any income made in these states.
You Are a Nonresident Who Worked or Sold Property in Indiana
If you are not a resident of Indiana, but made money there from certain types of sources, you have to file a nonresident return with Indiana. See below for a list of taxable income sources that apply in this case, as well as a list of states that have special rules.
Indiana taxes income from sources like property, gambling, lotteries winnings, commission (salaries, wages, tips etc.), business, partnerships, S corporations, stocks, bonds, bank deposits, patents, trusts and estates given to nonresident heirs.
If you are a resident of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and you only earned income from commission sources in Indiana, you have to file Form IT-40RNR. If you are a resident of any other state, or if you had income from other types of Indiana sources, you have to file your taxes with Form IT-40PNR.
If you live in Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, you have to pay taxes to Indiana, as these states have no income tax, and Indiana claims taxes on income earned from Indiana sources.
If you reside in Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia, or a foreign country, you have to file your Indiana return for any income earned in Indiana. In order to avoid dual taxation, make sure you request a refund from the state or country in which you resided.