Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 44
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60Second, use any community revitalization enhancement district credit;
Group A
then, use any voluntary remediation credit.
No Agreement (Credit taken on resident return)
How to adjust the amount of credit to be entered
Alabama
Maine
New York
(example)
Arkansas
Maryland
North Carolina
Example. Megan is eligible to claim a $100 credit for local taxes paid
Colorado
Massachusetts
North Dakota
outside Indiana plus a $200 community revitalization enhancement
Connecticut
Minnesota
Oklahoma
district credit (CREED), for a $300 total amount in offset credits. Her
Delaware
Mississippi
Rhode Island
county tax due (IT-40, line 9) is $160. Since her combined credits are
Georgia
Missouri
South Carolina
more than her county tax due, she should reduce the last entry (the
Hawaii
Montana
Tennessee*
$200 CREED credit) by the $140 difference to $60. She will enter the
Idaho
Nebraska
Utah
full $200 credit for local taxes paid outside Indiana on Schedule 6, line
Illinois
New Hampshire*
Vermont
1, and the $60 limited CREED credit on line 3a. Note: Megan may use
Iowa
New Jersey
Virginia
the $140 remaining CREED credit to offset any state adjusted gross
Kansas
New Mexico
West Virginia
income tax due on this year’s tax return (IT-40, line 8). See additional
Louisiana
Any foreign countries or U.S. possessions
instructions for the voluntary remediation credit on page 47.
*Capital gain, interest, and dividends only.
Line 4 - College credit
If you donated money or property to an Indiana college or university,
Group A Worksheet
you may be able to take a credit of up to $100 on a single return or
$200 on a joint return. To claim this credit you must complete and
A. Enter the amount of tax paid to the
enclose Schedule CC-40. For additional information see Schedule
other state. (This does not mean the
CC-40 at
and Income Tax Information Bul-
tax withheld from your wages, but
letin #14 at
the actual tax figured on the other
state’s return) ..................................................A ___________
Important. You must maintain documentation of your contributions.
B. Multiply the amount of income from the
The department can require you to provide this information at a later
other state (that is subject to Indiana tax)
date.
by 3.4% (.034) ................................................B ____________
C. Enter the amount of Indiana state income
Note. Tuition paid to a college or university is not a contribution, and
tax shown on Form IT-40 line 8 .................C ___________
does not qualify for this credit.
The lesser of the amounts on A, B or C is your allowable credit for
See the Combined Limitation on page 51.
taxes paid to other states.
Line 5 - Credit for taxes paid to other states
You must enclose a copy of the income tax return (not just the W-2
If you received income from another state while you were an Indiana
forms) you filed with the other state to claim this credit. If the other
resident, you must report that income on your Indiana income tax re-
state’s return is not enclosed, the credit will not be allowed. Likewise,
turn. You may be able to take a credit for taxes paid to another state. If
if you have a foreign tax credit, complete the Group A Worksheet and
you had income from another state, and had to pay taxes to that state,
federal Form 1116. If Form 1116 was not required, enclose Forms
read the following instructions carefully.
1099-INT and/or 1099-DIV (or a substitute statement) to verify the
foreign tax and amount of income being taxed.
If you were an Indiana resident during 2013 and had income from any
of the states listed in Group A below, you should first find out what the
Example. Ryan reported $10,000 Illinois-source wage income on the
other state’s rules are concerning the taxation of your income.
Illinois nonresident individual income tax return, and paid $300 tax
to Illinois on that income. His Indiana state tax liability from line 8 of
Form IT-40 is $870.
He will enter the following information on the Group A Worksheet.
A. $300 (tax paid to Illinois)
B. $340 ($10,000 x .034, tax due to Indiana)
C. $870 (Form IT-40 line 8)
Ryan’s credit is $300, which is the lesser of A, B and C.
Page 44
IT-40 Booklet 2013
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