The following information has been provided to assist in the
preparation of
IT-40
The county where you lived is the county where you maintained
your home on 1/1/2014. If you had more than one home on this
date, then your county of residence as of 1/1/2014, was:
a) where you were registered to vote. If this did not apply,
then your county of residence was;
b) where your personal automobile was registered. If this did
not apply, then your county of residence was;
c) where you spent the majority of your time in
Military Personnel
If you were stationed in
county where you lived on January 1 of the year you entered the
military service. If on 1/1/2014, you were stationed outside of
Indiana and your family was with you, enter OTHERSTATES in all
the county boxes.
Retired Persons
If you were retired by 1/1/2014, put your county of residence in
both the
You Worked boxes.
The county where you worked (county of principal employment) is
the county where your main place of business was located or
where your main work activity was performed on 1/1/2014. If you
had more than one job on 1/1/2014, your principal place of
employment is the job where you worked the most hours and earned
the most income.
If, on 1/1/2014, your county of principal employment was not in
Exception: If you worked in any of the following states on
1/1/2014, enter the state name:
Same rules apply as "Taxpayer County Where You Lived."
Same rules apply as "Taxpayer County Where You Worked."
Attach new Schedule 1 to enter Tax Addbacks.
NOL deduction: If you entered a Net Operating Loss deduction
Carry-forward from the Federal Pro-Forma Schedule, this amount
will automatically calculate on the line 21 of the Fed Form 1040
and then transfer to line 2 of the Schedule 1. If you enter the NOL
carry-forward deduction directly on the Federal Form 1040,
line 21, this amount will not transfer to the Schedule 1, line 2.
In that case, the NOL deduction must be entered on line 2 of
the Schedule 1. This line 2, Schedule 1 add-back is necessary because the
Indiana NOL carry-forward deduction must be entered on the
Schedule 2, line 11, other deduction worksheet, item 7.
Income Taxed on Federal Form 4972, Schedule 1, line 3.
When Federal Form 4972 is completed, the income from that form
will automatically transfer to line 3 of the Schedule 1.
Domestic production activities, Schedule 1, line 4.
If this deduction was claimed on Form 1040, line 35, it will
automatically be added back on line 4 of Schedule 1.
Attach new Schedule 2 to enter deductions.
Enter any
to the
carry to line 4 of the IT-40.
Attach new Schedule 4 to enter Other Taxes
Use Tax on Out-of-State Purchases, Schedule 4, line 1
If while a resident of
or directly from an out-of-state company, those purchases may
be subject to
the time of purchase. This tax, called "use" tax, is figured
by multiplying 7% (.07) times the total purchases that were made
between the period 1/1/2014 and 12/31/2014.
Household Employment Taxes, Schedule 4, line 2
If you paid cash wages during 2014 to an individual who is not:
a) your spouse; b) your child under age 21; c) your parent; or
d) an employee under age 18; and e) they worked in and around
your home as a baby-sitter, nanny, health aide, private nurse,
maid, caretaker, yard worker or someone who does similar
domestic duties, then they may be your employee.
If you paid cash wages over $1,500 to a household worker who
is your employee, you may have needed to have withheld state &
county income taxes. If you want to pay these taxes on your
to your IT-40.
This is the total of credits from new Schedule 5, line 9.
These credits are automatically calculated for
withholding except for "other state withholding." Enter on
Schedule 5, line 1 any
W-2's, W-2G's, 1099-R's or 1099-G's. For example, the
Federal Form 1099-Misc may have
Indiana County Tax Withheld, Schedule 5, line 2
Enter the "IN" state code on line 15 of the W-2 and enter the
amount of county tax withheld on line 19 of the W-2. You can now
enter the "
tax withheld will calculate correctly on line 2 of new
Schedule 5, line 2. Enter the "IN" state code on line 11 of the
1099-R & the amount of county tax withheld on line 13 of the 1099-R.
You can now enter the "
IN county tax withheld will calculate correctly on line 2, Schedule 5.
Estimated Tax Paid in 2014, Schedule 5, line 3
Enter estimated state income taxes paid for
Form 1040, line 62. These amounts will automatically calculate on
Schedule 5, line 3. If these amounts are not entered on the
federal 1040, line 62, then they are entered Schedule 5, line 3.
Unified Tax Credit for the Elderly, Schedule 5, line 4
You may be able to claim a credit if you or your spouse meet all
of the following requirements:
a) you and/or your spouse must have been age 65 or older by
12/31/2014;
b) if married & living together at any time during the year, you
must file a joint return;
c) the amount on line 1 of Form IT-40 must be less than $10,000;
d) you must have been a resident of
during 2014 ; and
e) you must not have been in prison for 180 days or more in 2014.
Disabled persons under age 65 do not qualify for this credit.
To figure the credit Use:
"Table A" for Joint Filers Both Age 65 or Older
If the income on Line 1
of Form IT-40 is: Your Allowable Credit is:
less than $1,000 $140
between $1,000 and $2,999 $ 90
between $3,000 and $9,999 $ 80
"Table B" Only One Person Age 65 or Older
If the income on Line 1
of Form IT-40 is: Your Allowable Credit is:
less than $1,000 $100
between $1,000 and $2,999 $ 50
between $3,000 and $9,999 $ 40
Enter the applicable credit on line 4 of schedule 5.
Earned Income Credit, Schedule 5, line 5
Enter qualifying child's information on Client Data Screen;
for example, enter son, daughter, fosterchild, or child for the
required relationship to child. Make sure to enter the birthdate
and number of months child lived with you. The relationship of
child, birthdate and months lived with information are required. The
IN Sch-EIC will automatically add after required data is entered.
You are eligible for to claim the In EIC if the following apply:
- you were an
- had income from
- you claimed the EIC on the federal return.
The credit is equal to (.09) 9% of the federal EIC.
Lake County Residential Tax Credit, Schedule 5, line 6
Answer questions 1 and 1A on the worksheet for Schedule 5, line 6
and the credit will automatically calculate if it applies based on
income and property taxes paid for the county.
Economic development for a growing economy credit, Schedule 5, line 7
If you have business income (including partnership or S corporation income)
you may be eligible for this credit. This credit is available to businesses who
conduct certain activities that are designed to foster job creation or
job retention in
such as members of partnerships and S corporations. Contact the
One North Capitol,
for eligibility requirements, or visit www.in.gov/iedc
for additional information.
Note: The approved credit agreement letter from the IEDC must
be enclosed, or this credit will not be allowed.
Media production expenditure credit, Schedule 5, line 8
This credit is for qualified media production expenditures. The
minimum qualified production expenditure for a feature length film,
including a short feature; an independent or studio production; a
documentary; and a television series, program, or feature, must be
at least $100,000 to qualify for the credit. The minimum qualified
production expenditure for a digital media production, an audio
recording, a music video, an advertising message broadcast on radio
or television, or a media production concerning training or external
marketing or communications is $50,000.
Pass-through entities (such as members of S corporations and
partnerships) are eligible for this credit.
Contact the
Capitol,
about this credit. The approved credit agreement letter from the IEDC
and a computation of the credit must be enclosed with the return.
Otherwise, this credit will not be allowed.
Get Commissioner’s Directive #36 at www.in.gov/dor/3617.htm for
additional information.
Attach new Schedule 6 to enter offset credits.
The worksheets on lines 1, 3, 5, and 6 of Schedule 6
must be completed to calculate these credits.
The College Credit shown on line 4 of Schedule 6 is determined
by completing Form CC-40.
Credit for Local Taxes Paid Outside Indiana, line 1, Schedule 6
If you figured county tax on Form IT-40, line 9, and had to pay a local
income tax outside
credit applies only if the tax you paid outside
city, county, town, or other local governmental entity, and they did not
refund the tax, or give you a credit for
The credit can be used to reduce your
County Adjusted Gross Income Tax or the
Tax. It cannot be used to reduce any County Economic Development
Income Tax.
Step 1: Figuring your rate: If your Jan. 1, 2014 county of residence has a
rate on the Rate Conversion Chart on page 27, use the rate in Column
A to figure your credit.
If your Jan. 1, 2014, county of residence is
1, 2014, county where you worked has a rate on the Rate Conversion
Chart, use the rate in Column B to figure your credit.1
Rate Conversion Chart
Rate Conversion Chart
County
Adams 006000 001500
Allen 006875 001719
Bartholomew 010000 002500
Benton 020000 002500
Blackford 010000 002500
Boone 010000 002500
Brown 019500 002500
Carroll 015539 002500
Cass 022500 002500
Clark 015000 002500
Clay 022500 002500
Clinton 015000 002500
Crawford 007500 002500
Daviess012500 002500
Dearborn 006000 001500
Decatur010000 002500
DeKalb 010000 002500
Delaware 006000 001500
Dubois 006000 001500
Elkhart 012500 002500
Fayette020000 005000
Floyd 007500 002500
Fountain 010000 002500
Franklin010000 002500
Fulton 015000 002500
Gibson 000000 000000
Grant 020000 005000
Greene 010000 002500
Hamilton 010000 002500
Hancock 014500 002500
Harrison 007500 002500
Hendricks 011500 002500
Henry 010000 002500
Howard014000 003500
Huntington 015000 002500
Jackson 011000 002500
Jasper 028265 002500
Jay 021000 002500
Jefferson 000000 000000
Jennings 010000 002500
Johnson 010000 002500
Knox 006000 001500
Kosciusko 007000 001750
LaGrange 010000 002500
Lake 003125 000625
LaPorte005000 002500
Lawrence 017500 002500
Madison 017500 004375
Marion 016200 004050
Marshall 012500 002500
Martin 013000 003250
Miami 021000 005250
Monroe010500 002625
Montgomery 020000 005000
Morgan024500 002500
Newton010000 002500
Noble 010000 002500
Ohio 010000 002500
Orange 010000 002500
Owen 010000 002500
Parke 018000 002500
Perry 005000 001250
Pike 000000 000000
Porter 000000 000000
Posey 005000 00125
Pulaski027000 002500
Putnam010000 002500
Randolph 010000 002500
Ripley 010000 002500
Rush 010000 002500
St. Joseph 013500 003375
Scott 012500 003125
Shelby 010000 002500
Spencer 003 000750
Starke 005000 002500
Steuben 015000 002500
Sullivan000000 000000
Switzerland 010000 002500
Tippecanoe 006000 001500
Tipton 012500 002500
Union 012500 002500
Vanderburgh 010000 002500
Vermillion 000000 000000
Vigo 007500 002500
Wabash 024000 002500
Warren 018000 002500
Warrick000000 000000
Washington 011250 002500
Wayne 012500 002500
Wells 016500 002500
White 010000 002500
Whitley010000 002500
The credit will automatically calculate if you qualify for the
federal schedule R elderly credit.
Credit for Taxes Paid to Another state, line 2, Schedule 6
On the worksheet, enter the other state code to automatically
calculate the credit provided that the other state package has
been added. If the other state package has not been added, then
lines 1 and 2 of the worksheet must be completed.
You might owe this penalty if:
a) the total of your estimated tax payments (plus all other
credits) is not at least 90% of this year's tax due or 100%
of your tax due last year; or
b) you underpaid the minimum amount due for one or more of the
installment periods.
If either of these cases apply to you, you must complete
Schedule IT-2210 to see if you owe a penalty or if you meet
an exception.
If your tax return is filed after the April 15, 2015 due date
and you have an amount due, you probably owe a penalty. The
Penalty is 10% of the amount due or $5.00, whichever is
greater. Exception: If you have an extension of time to file
(you filed IT-9), are filing by the extended filing due date,
and have prepaid at least 90% of the amount due by 4/15/2015,
then no penalty is due.
If your tax return is filed after the April 15, 2015 due date
and you have an amount due, you will owe interest (even if you
have an extension of time to file.) You can contact the
Department for the current interest rate by calling
(317) 232-2240.
Additional Information, new Schedule 7
Extension of Time to File, line 3, Schedule 7
Check the box or boxes that apply.
Farmers and Fisherman line 4, Schedule 7
If two-thirds of your gross income is from farming or fishing,
check the box. This ensures that a penalty for underpayment of
tax is not assessed provided your return is filed and all taxes
are paid by 1/31/2015. Also, fill out Form 2210 and check the box
on that form indicating that two-thirds of income were from
farming or fishing and that all taxes were paid by 1/31/2015.
Deceased Individual Information, Schedule 7, line 5
If the taxpayer and/or spouse died during 2014, and this return
is being filed with their name on it, the date(s) of death
will automatically calculate.
Taxpayer and Spouse PIN Information, Schedule 7
For all electronically filed tax returns the taxpayer PIN
(and spouse PIN if a joint return) must be entered.
Third Party Designee Information, Schedule 7
If you want to designate a third party, then enter the data here.
Paid Preparer Information, Schedule 7
If the paid preparer information is entered on the federal 1040,
then this information will automatically carry to schedule 7