Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2012 Page 19
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64Tuition and fees add-back 123
Important. Keep copies of your rental receipts, landlord identifying
information and lease agreements as the Department can require you
If you claimed a deduction for qualified tuition and related expenses
to provide this information.
under Section 222 of the Internal Revenue Code on Form 1040, line
34, or Form 1040A, line 19, you must add the amount back.
For more information about this deduction, see Income Tax Informa-
tion Bulletin #38 at
Enter code 123 on Schedule 1 under line 7 if reporting this add-back.
Line 2 – Homeowner’s residential property tax
Schedule 2: Deductions
deduction
You may be able to take a deduction of up to $2,500 of the Indiana
property taxes (residential real estate taxes) paid on your principal
Line 1 – Renter’s deduction
place of residence. Your principal place of residence is the place where
You may be able to take the renter’s deduction if:
you have your true, fixed home and where you intend to return after
•
You paid rent on your principal place of residence, and
being absent.
•
The place you rented was subject to Indiana property tax.
Note. Property tax paid for summer homes or vacation homes is not
Your “principal place of residence” is the place where you have your
deductible.
true, fixed, permanent home and where you intend to return after be-
ing absent.
Important. You cannot claim this deduction for property tax paid in
2012 if you are claiming the Lake County residential income tax credit
If you rented a manufactured home or paid rent for your manufac-
on Schedule 5, line 6.
tured home lot, you may claim the renter’s deduction if the above
requirements are met. Rent paid for summer homes or vacation homes
How do I claim my deduction? Complete the information area on
is not deductible.
Schedule 2, line 2. Enter the address of your principal residence where
the Indiana property tax was paid if it is different from the address on
You cannot claim the renter’s deduction if the rental property was not
the front of the return. If you had more than one principal residence
subject to Indiana property tax. Examples of this type of property are:
during the year, and you paid Indiana property tax on both residences,
•
Government owned housing,
list the additional residence on a separate piece of paper.
•
Property owned by a nonprofit organization,
•
Student housing,
Example. Sue and Mack each owned their own home; they married
•
Property owned by a cooperative association, and
in 2012. They sold both of their homes during the year and began
•
Property located outside of Indiana.
renting. They are eligible to claim a property tax deduction on the
combined property taxes paid on both homes if they are filing a joint
How do I report my deduction? First, complete the information area
return (limited to $2,500 altogether).
by entering:
•
The address where rented if it’s different from the address on the
•
Enter the number of months you lived there. If you claim more
front of the return (leave blank if it is not different),
than one residence, enter the number of months lived at the other
•
The landlord’s name and address,
residence(s) on a separate sheet of paper.
•
The total amount of rent paid, and
•
The number of months you lived there.
•
Enter the amount of Indiana property tax paid. If you lived in
more than one residence during the year, enter the combined
If you moved during the year or had more than one landlord, you
amount of Indiana property tax paid on all principal residences.
must list the same information for each place that you rented. Enclose
additional pages if necessary.
•
Enter the smaller of $2,500 or the amount of Indiana property tax
paid.
How much rent can I deduct? You can deduct up to $3,000 or the
amount of rent paid, whichever is less.
No double benefit allowed. If any portion of property taxes paid on
your principal residence was deducted as an expense on federal Sched-
Example. Emily paid $4,800 in rent on her principal place of residence.
ule C, C-EZ, E or F, then do not deduct that amount on this line.
She will claim a $3,000 renter’s deduction.
Example. Jean paid $1,200 in Indiana property tax on her home. She
Example. Bill paid $400 rent for his first apartment. He moved to
used one room of her home for her business, and deducted $200
another location during the year and paid $2,800 rent for the rest of
Indiana property tax as an expense on her federal Schedule C. Jean
the year. His deduction will be limited to $3,000, even though he paid
is allowed a deduction of $1,000 ($1,200 minus the $200 deduction
$3,200 altogether.
already taken on federal Schedule C).
Page 19
IT-40 Booklet 2012
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