Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 22
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60Airport development zone employee deduction
600
For more information about this deduction see Income Tax Informa-
tion Bulletin #70 at
and Schedule IT-2440
Certain areas within Indiana have been designated as airport develop-
at
ment zones. If you lived in an airport development zone and worked
for a qualified employer in that zone, you may be able to take this
This deduction is limited to a maximum of $5,200 per qualifying
deduction.
individual.
Your employer will provide Form IT-40QEC to you if you are eligible
Note. Social Security disability income does not qualify for this deduc-
to claim this deduction.
tion because Indiana does not tax this income.
The amount of the deduction is one-half (½) of the earned income
Enter code 602 on Schedule 2 under line 11 if claiming this deduction.
shown on that form or $7,500, whichever is less. You must enclose
Form IT-40QEC with the Form IT-40 to support any claimed deduc-
Enterprise zone employee deduction
603
tion.
Certain areas within Indiana have been designated as enterprise zones.
Enter code 600 on Schedule 2 under line 11 if claiming this deduction.
Enterprise zones are established to encourage investment and job
growth in distressed urban areas.
Civil service annuity deduction
601
Enterprise zones have been established in areas of certain cities/loca-
The income on line 1 of Form IT-40 may include federal civil service
tions. Use this website to look up contact information for a particular
annuity payments. If it does, you may be able to take a deduction if
enterprise zone:
you were at least 62 years of age by Dec. 31, 2013.
Your employer will provide Form IT-40QEC to you if you are eligible
To figure your deduction, begin with the amount of annuity payments
to claim this deduction.
received or $2,000, whichever is less. Subtract from that amount any
Social Security and railroad retirement benefits (issued by the Railroad
The amount of the deduction is one-half (½) of the earned income
Retirement Board) you received.
shown on Form IT-40QEC or $7,500, whichever is less. If you and
your spouse both have received Form IT-40QEC, you may each take
Example. Your civil service annuity is $6,000. Your Social Security
this deduction for a combined maximum of $15,000 (no more than
income is $1,200. Here is how to figure your deduction:
$7,500 per qualifying person).
Lesser of the amount of the annuity ($6,000) or $2,000 .............$2,000
Enter code 603 on Schedule 2 under line 11 if claiming this deduction.
Social Security benefits ..................................................................$1,200
Allowable deduction ......................................................................$ 800
Human services deduction 605
If you and your spouse both received civil service annuities, you
The human services deduction is intended to eliminate any individual
may each take this deduction for a maximum of $4,000 (no more
income tax imposed on Medicaid recipients who are living in a:
than $2,000 per qualifying person), provided you both meet the age
•
Hospital,
requirement.
•
Skilled nursing facility,
•
Intermediate care facility,
This deduction is available only to the annuitant and is not available to
•
Licensed county home,
the annuitant’s beneficiary. For more information about this deduction
•
Licensed boarding or residential home, or
see Income Tax Information Bulletin #6 at .
•
Certified Christian Science facility.*
Enter code 601 on Schedule 2 under line 11 if claiming this deduction.
The goal of the human services tax deduction is to reduce the affected
individual’s adjusted gross income tax liability to zero (0).
Disability retirement deduction
602
*An eligible Christian Science facility must be listed with and certified
To take this deduction you must have been:
by the Commission for Accreditation of Christian Science Nursing
•
Permanently and totally disabled at the time of retirement,
Organizations/Facilities, Inc.
•
Retired on disability before Dec. 31, 2013, and
•
Received disability retirement income during 2013.
Generally, the deduction should not be used in conjunction with most
tax credits in order to create a refund.
If you meet these qualifications, you must complete Schedule IT-2440
and have it signed by your doctor to claim this deduction. Schedule
If you are a Medicaid recipient and live in one of the facilities listed
IT-2440 must be enclosed with your tax return when claiming this
above, to determine whether you are eligible for the deduction you
deduction.
must first prepare your tax return without claiming a human services
deduction. Generally, if a refund is due, you are not eligible for a de-
Page 22
IT-40 Booklet 2013
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