Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2012 Page 22
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64Example. Enter the following information on line 11a to claim a $130
Disability retirement deduction
602
civil service annuity deduction and on 11b to claim a $5,200 NOL
To take this deduction you must have:
deduction:
•
Been permanently and totally disabled at the time of retirement,
•
Retired on disability before Dec. 31, 2012, and
11a. Civil Service Annuity
601
11a
130
•
Received disability retirement income during 2012.
b. Indiana Net Operating Loss
607
11b
5200
If you meet these qualifications, you must complete Schedule IT-2440
Airport development zone employee deduction
600
and have it signed by your doctor to claim this deduction. Schedule
IT-2440 must be enclosed with your tax return when claiming this
Certain areas within Indiana have been designated as airport develop-
deduction.
ment zones. If you lived in an airport development zone and worked
for a qualified employer in that zone, you may be able to take this
For more information about this deduction see Income Tax Informa-
deduction.
tion Bulletin #70 at
and Schedule IT-2440
Your employer will provide Form IT-40QEC to you if you are eligible
at
to claim this deduction.
This deduction is limited to a maximum of $5,200 per qualifying
individual.
The amount of the deduction is one-half (½) of the earned income
shown on that form or $7,500, whichever is less. You must enclose
Note. Social Security disability income does not qualify for this deduc-
Form IT-40QEC with the Form IT-40 to support any claimed deduc-
tion because Indiana does not tax this income.
tion.
Enter code 602 on Schedule 2 under line 11 if claiming this deduction.
Enter code 600 on Schedule 2 under line 11 if claiming this deduction.
Enterprise zone employee deduction
603
Civil service annuity deduction
601
Certain areas within Indiana have been designated as enterprise zones.
The income on line 1 of Form IT-40 may include federal civil service
annuity payments. If it does, you may be able to take a deduction if
Enterprise zones are established to encourage investment and job
growth in distressed urban areas.
you were at least 62 years of age by Dec. 31, 2012.
Enterprise zones have been established in areas of certain cities/loca-
To figure your deduction, begin with the amount of annuity payments
tions. Use this website to look up contact information for a particular
received or $2,000, whichever is less. Subtract from that amount any
Social Security and railroad retirement benefits (issued by the Railroad
enterprise zone:
Retirement Board) you received.
Your employer will provide Form IT-40QEC to you if you are eligible
Example. Your civil service annuity is $6,000. Your Social Security
to claim this deduction.
income is $1,200. Here is how to figure your deduction:
The amount of the deduction is one-half (½) of the earned income
shown on Form IT-40QEC or $7,500, whichever is less. If you and
Lesser of the amount of the
annuity ($6,000) or $2,000 .............................. $2,000
your spouse both have received Form IT-40QEC, you may each take
this deduction for a combined maximum of $15,000 (no more than
Social Security benefits .................................... $1,200
$7,500 per qualifying person).
Allowable deduction ........................................ $ 800
Enter code 603 on Schedule 2 under line 11 if claiming this deduction.
If you and your spouse both received civil service annuities, you
may each take this deduction for a maximum of $4,000 (no more
Human services deduction 605
than $2,000 per qualifying person), provided you both meet the age
requirement.
The human services deduction is intended to eliminate any individual
income tax imposed on Medicaid recipients who are living in a:
This deduction is available only to the annuitant and is not available to
•
Hospital,
the annuitant’s beneficiary. For more information about this deduction
•
Skilled nursing facility,
see Income Tax Information Bulletin #6 at .
•
Intermediate care facility,
•
Licensed county home,
Enter code 601 on Schedule 2 under line 11 if claiming this deduction.
•
Licensed boarding or residential home, or
•
Certified Christian Science facility.*
The goal of the human services tax deduction is to reduce the affected
individual’s adjusted gross income tax liability to zero (0).
Page 22
IT-40 Booklet 2012
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial