Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 41
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60Example. Sue has $17,000 wage income, $300 interest income and
Important. Remember, you can claim either this credit OR the home-
$7,000 pension income. Even though her total income is $24,300,
owner’s residential property tax deduction on Schedule 2, line 2, but
Sue will qualify for the credit because her earned income is less
not both.
than $18,600 (it is $17,000).
Lines 7 and 8:
Important. You are not required to have earned income to be eli-
•
Economic development for a growing economy
gible for this credit.
credit (EDGE);
•
Economic development for a growing economy
You are not claiming the homeowner’s residential property tax
3.
retention credit (EDGE-R)
deduction on Indiana Schedule 2, line 2.
If you have business income (including partnership or S corporation
income) you may be eligible for one or both of these credits. These
How do I figure my credit?
credits are available to businesses who conduct certain activities that
are designed to foster job creation and/or job retention in Indiana.
Step 1
Did you pay property tax to Lake County (Indiana) on
□
□
This credit is available to pass-through entities, such as members of
your residence for 2013?
Yes
No
partnerships and S corporations.
•
If you answered yes, continue to Step 2.
•
If you answered no, STOP. You do not qualify for this credit.
Contact the Indiana Economic Development Corporation (IEDC),
One North Capitol, Suite 700, Indianapolis, IN, 46204, for eligibility
Step 2
Enter your earned income. This will include your (and
requirements, or visit
for additional information.
your spouse’s, if filing a joint return) wage, salary, tip and other
compensation, plus net earnings from self-employment.
To claim these credits you must complete and enclose Schedule IN-
EDGE or Schedule IN-EDGE-R, which are located online at
$ _________________________________________
The information to be reported on Sched-
ule IN-EDGE or Schedule IN-EDGE-R is located on the Indiana
Step 3
Schedule IN K-1 or on the approved credit agreement letter from the
•
If the amount in Step 2 is greater than $18,600, STOP.
IEDC.
You do not qualify for this credit.
•
If the Step 2 amount is less than $18,000, skip to
Worksheet A.
Schedule 6: Offset Credits
•
If the Step 2 amount is between $18,000 and $18,600, skip to
Worksheet B.
The following credits cannot be refunded; their purpose is to help
Worksheet A:
reduce your state and/or county tax amounts due. See the limitation
areas after the instructions for line 3 and line 6.
Complete if your earned income is less than $18,000.
Line 1 – Credit for local taxes paid outside of Indiana
A1 Enter the amount of Indiana property
If you figured county tax on Form IT-40, line 9, and had to pay a lo-
tax you paid on your Lake County
cal income tax outside Indiana, you may be able to take a credit. This
residence ......................................................... A1 $ __________
credit applies only if the tax you paid outside Indiana was to another
A2 Maximum credit ............................................. A2 $
300
A3 Enter the smaller of A1 or A2. This is
city, county, town, or other local governmental entity, and they did not
refund the tax, or give you a credit for Indiana county tax.
your credit. Enter here and on line 6 .......... A3 $ __________
The credit can be used to reduce your Indiana county tax if it is the
Worksheet B: Earned Income Phaseout
County Adjusted Gross Income Tax or the County Option Income
Complete if your earned income is between $18,000 and $18,600.
Tax. It cannot be used to reduce any County Economic Development
Income Tax.
B1 Allowable maximum earned income ........... B1 $
18,600
B2 Enter your earned income from Step 2 ........ B2 $ __________
Step 1: Figuring your rate: If your Jan. 1, 2013 county of residence
B3 Subtract B2 from B1 (if answer is zero
has a rate on the Rate Conversion Chart on page 42, use the rate in
or a (negative) amount, STOP.
Column A to figure your credit.
You do not qualify for this credit) ............... B3 $ __________
B4 Multiply the amount on B3 by .5 ................. B4 $ __________
B5 Enter the amount of Indiana property tax
you paid on your Lake County residence .... B5 $ __________
B6 Enter the smaller of B4 or B5. This is your
credit. Enter here and on line 6 .................... B6 $ __________
Page 41
IT-40 Booklet 2013
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