Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2012 Page 18

Indiana’s Student Loan Interest Add-Back Worksheet

Complete the worksheet if you reported a student loan interest deduction on federal Form 1040, line 33, or Form 1040A, line 18.

Step A

1. Enter the total interest you (and your spouse, if married*) paid in 2012 on qualified student loans .................. 1 __________

2. Enter any amount included in line 1 that was paid on student loans after the first 60 months that interest

payments were required .....................................................................................................................................2 __________

3. Subtract line 2 from line 1. If answer is zero, skip to Step C and enter -0- on line 16. ....................................... 3 __________

4. Enter any amount included in line 1 that was a voluntary payment of interest and was paid within the first

60 months that interest payments were required. ...............................................................................................4 __________

5. Subtract line 4 from line 3. If the answer is zero, skip to Step C and enter -0- on line 16. ................................. 5 __________

Step B

6. Enter the lesser of the amount from Step A, line 5, or $2,500 .................................................. 6 _________

7. Enter the amount from Form 1040, line 22 (or Form 1040A, line 15) ....................................... 7 _________

8. Enter the total of the amounts from Form 1040, lines 23 through 32,

plus any write-in adjustments you entered on the dotted line next to line 36

(or Form 1040A, lines 16 plus 17) ............................................................................................. 8 _________

9. Subtract line 8 from line 7. This is your modified adjusted gross income ................................. 9 _________

10. Enter the amount** shown below for your filing status used on your federal

income tax return

•

Single, head of household, widow(er) $50,000

•

Married filing jointly $75,000 ............................................................................................ 10 _________

11. Is the amount on line 9 more than the amount on line 10?

No. Skip line 12, enter -0- on line 13

Yes. Subtract line 10 from line 9 .............................................................................................11 _________

12. Divide line 11 by $15,000. Enter the result as a decimal rounded to three places.

If the result is 1.000 or more, enter 1.000. .............................................................................. 12 _________

13. Multiply line 6 by line 12 .......................................................................................................... 13 _________

14. Subtract line 13 from line 6. (This is the Student Loan Interest Deduction allowable for

Indiana adjusted gross income tax purposes) ..................................................................................................14 __________

Step C

15. Enter the amount of student loan interest deduction claimed on your federal Form 1040, line 33,

or Form 1040A, line 18. ....................................................................................................................................15 __________

16. Enter the amount from one of the following:

Step A, line 3 (if you were instructed to); or

Step A, line 5 (if you were instructed to); or

Step B, line 14. ..................................................................................................................................................16 __________

17. Subtract line 16 from line 15.

•

If the amount is more than zero, round*** the amount and enter here and on Schedule 1, line 7

(identify using 3-digit code #128).

•

If the answer is zero or less than zero, enter -0- here and STOP. You have no amount to be

added back on Schedule 1. ........................................................................................................................17 __________

* Federal rules require married individuals to file as married filing jointly to be eligible to claim this deduction.

**Indiana limitation for 2012 and beyond.

***When rounding, drop amounts of less than $.50, and increase amounts of $.50 or more to the next whole dollar.

Page 18

IT-40 Booklet 2012