Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet

duction. File your return without claiming the deduction and a refund

Enclose Schedule A from federal Form 1045 and a completed Indiana

will be issued. However, if an amount is due, you are eligible to use a

Schedule IT-40NOL when claiming this deduction.

deduction.

Also, maintain with your records a copy of the federal Form 1040 from

Enter code 605 on Schedule 2 under line 11 if claiming this deduction.

the loss year as the department can require you to provide this infor-

mation at a later date.

Indiana lottery winnings deduction

606

Enter code 607 on Schedule 2 under line 11 if claiming this deduction.

If you win any prize money from the Indiana Hoosier Lottery Com-

mission, either by winning an instant game, an online game such as

Indiana partnership long-term care policy premiums

Hoosier Lotto, Powerball, Mega Millions, etc., you must report those

winnings as income on your federal income tax return.

deduction

608

You may take a deduction for the amount of premiums paid for Indi-

Most of these winnings are fully taxable by Indiana. However, some of

ana partnership long-term care insurance.

the winnings may be exempt from Indiana tax. Also, annuity pay-

ments received for drawings held by the Indiana Hoosier Lottery

Important. The Indiana partnership policy will have the following box

Commission before July 1, 2002, are exempt from Indiana tax.

of information on the outline of coverage, the application or on the

front page of the policy:

The maximum allowable deduction is up to $1,200 per qualifying

W-2G. Complete the worksheet below to see if you are both eligible for

This policy qualifies under the Indiana Long-Term Care program

a deduction and, if so, how to figure it.

for Medicaid Asset Protection. This policy may provide benefits in

excess of the asset protection provided in the Indiana Long-Term

Note. Winnings from other state lotteries, Indiana pari-mutuel horse

Care program.

races or out-of-state tracks, Indiana and out-of-state riverboats and

other gambling winnings (from both Indiana and out-of-state casi-

nos), are fully taxable in Indiana and should not be deducted from

If the information shown in the box above is not located in a box on

your taxable income.

your policy, you do not have a qualifying policy, and are not eligible to

take this deduction.

Enter code 606 on Schedule 2 under line 11 if claiming this deduction.

The deduction is the amount of premiums paid during the year on the

Indiana net operating loss deduction

607

policy for the taxpayer and/or spouse.

You may take a deduction for the Indiana portion of the federal net

No double benefit allowed. Certain self-employed individuals will

operating loss deduction (NOL) you added back on line 2 of

claim these premiums as a deduction on the front page of federal

Schedule 1. (This will be a net operating loss deduction from an earlier

Form 1040. The Indiana deduction will be the actual amount of these

year(s) carried forward to 2013.) Write the amount you deduct as a

premiums paid, minus any amount of these already reported on fed-

positive figure.

eral Form 1040.

Note. It is possible to have an Indiana NOL without also having a fed-

Example. Sam paid $4,500 in Indiana partnership long-term care

eral NOL. See Schedule IT-40NOL, which can be found at

premiums and deducted $1,360 of that amount as an expense on his

, for more information.

Lottery Winnings Worksheet

A. Enter the amount of winnings from the Hoosier Lottery Commission that you have reported

on your federal Form 1040, line 21 ............................................................................................................................................... A $

B. Locate those W-2Gs (issued by the Hoosier Lottery

Commission) showing Indiana state withholding in Box 14.

Add the amounts from Box 1 of each of those W-2Gs; enter

total here .......................................................................................................................................... B $

C. Exemption ......................................................................................... C $

1, 2 0 0

D. How many W-2Gs* did you locate in line B above (e.g. 1, 2, etc.)? .

*Exception. Include the W-2G from an annuity payment ONLY in

the first year in which you receive it. .............................................. D X

E. Multiply line C by line D; enter result here ..................................................................................... E $ -

F. Subtract line E from line B; enter result here .............................................................................................................................. F $ -

G. Subtract line F from line A. Enter here and on Schedule 2 under line 11 .................................................................................. G $

Page 23

IT-40 Booklet 2013

Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 23

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