Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 25
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60Dependent child qualifications
Examples.
•
Your dependent child must be eligible to receive a free elementary
•
On Schedule 2 line 11a enter “XYZ Homeschool 019999Z” in
or high school education (K-12 range) in an Indiana school cor-
the “Enter deduction name” box, followed by code 626 and the
poration;
amount of the deduction.
•
You must be eligible to claim the child as a dependent on your
federal tax return; and
•
If the school is not registered with the IDOE, just enter the name
•
The child must be your natural or adopted child or, if not, you
“XYZ Homeschool” in the “Enter deduction name” box, followed
must have been awarded custody of the child in a court proceed-
by code 626 and the amount of the deduction.
ing making you the court appointed guardian or custodian of the
child.
•
If the school has no designated name, enter “private school/home-
school” in the “Enter deduction name” box, followed by code
Education expenditure. This refers to any expenditures made in con-
626 and the amount of the deduction.
nection with enrollment, attendance, or participation of your depen-
dent child in a private elementary or high school education program.
For more information about this deduction, see Income Tax Informa-
The term includes tuition, fees, computer software, textbooks, work-
tion Bulletin #107 at
books, curricula, school supplies (other than personal computers), and
other written materials used primarily for academic instruction or for
Qualified patents income exemption deduction
622
academic tutoring, or both. The term does not include the delivery of
Some of the income from qualified patents included in federal taxable
instructional service in a home setting to your dependent child who is
income may be exempt from Indiana adjusted gross income tax. A
enrolled in a school corporation or a charter school.
qualified patent is a utility patent or a plant patent issued after Dec. 31,
2007, for an invention resulting from a development process conduct-
A “private elementary or high school education program” means at-
ed in Indiana. The term does not include a design patent.
tendance at a nonpublic school (including a private school, a parochial
school and a homeschool) in Indiana that satisfies a child’s obligation
The exemption includes licensing fees or other income received for the
for compulsory attendance at a school.
use of the patent, royalties received for the infringement, receipts from
the sale of a qualified patent, and income from the taxpayer’s own use
The obligation for “compulsory attendance” means a child must be in
of the patent to produce the claimed invention.
attendance in a school (public and/or private) for a minimum of 180
days in a calendar year.
Complete Schedule IN-PAT and enclose with your tax return when
claiming this deduction. You may get Schedule IN-Pat at
Note. No deduction will be available based on a child who is enrolled
in school for a period of less than 180 days in a calendar year.
For more information about this deduction see Income Tax Informa-
Figure your deduction. If you made an unreimbursed education
tion Bulletin #104 at
expenditure during the year your deduction is:
•
$1,000; multiplied by
Enter code 622 on Schedule 2 under line 11 if claiming this deduction.
•
the number of qualified dependent children for whom you made
education expenditures.
Railroad unemployment and sickness benefits
624
Benefits issued by the U.S. Railroad Retirement Board are not taxable
Example. Greg and Constance have three children ages 7, 9 and 11.
to Indiana.
The two oldest children attend a private school. The youngest child at-
tends the neighborhood public school. The parents purchased school-
Deduct unemployment and/or sick pay benefits issued by the U.S.
books for all three children. They will be eligible for a $2,000 deduc-
Railroad Retirement Board on this line if:
tion (the youngest does not qualify as he attends a public school).
•
You included these benefits as taxable income on your federal tax
return, and
Note. A qualifying child may be claimed for this deduction only once
•
You did not already deduct these benefits on Schedule 2, lines 5
per year. For example, if a husband and wife are married and filing
and/or 6.
separately, whichever parent is eligible to claim the child as a depen-
dent for exemption purposes is eligible to claim this deduction.
Do not include any supplemental sick pay benefits on this line.
How to report the deduction. If the private school or homeschool is
Make sure to keep the statements (such as Form 1099G) issued by the
registered with the Indiana Department of Education (IDOE), enter
U.S. Railroad Retirement Board as the department may request them
the school’s name and identifying number assigned by the IDOE.
at a later date.
Enter code 624 on Schedule 2 under line 11 if claiming this deduction.
Page 25
IT-40 Booklet 2013
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