Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2012 Page 25
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64Brandon is eligible for both Indiana military deductions. First, he will
Example. Greg and Constance have three children ages 7, 9 and 11.
claim the $5,000 maximum military service deduction on Schedule 2,
The two oldest children attend a private school. The youngest child at-
line 7, based on the $6,000 income earned through October 15. Then,
tends the neighborhood public school. The parents purchased school-
he will claim the National Guard and reserve components deduction
books for all three children. They will be eligible for a $2,000 deduc-
of $7,000 (full amount of income earned after his unit was federalized)
tion (the youngest does not qualify as he attends a public school).
under line 11. Note: He will not deduct the $3,000 income earned
Note. A qualifying child may be claimed for this deduction only once
while stationed in a combat zone because it was not taxed to begin
with.
per year. For example, if a husband and wife are married and filing
separately, whichever parent is eligible to claim the child as a depen-
Military withholding statements must be attached to the tax return
dent for exemption purposes is eligible to claim this deduction.
when claiming this deduction.
How to report the deduction. If the private school or homeschool is
Enter code 621 on Schedule 2 under line 11 if claiming this deduction.
registered with the Indiana Department of Education (IDOE), enter
the school’s name and identifying number assigned by the IDOE.
626
Private school/homeschool deduction
Examples.
You may be eligible for a deduction based on education expenditures
•
On Schedule 2 line 11a enter “XYZ Homeschool 019999Z” in the
paid for each dependent child who is enrolled in a private school or is
“Enter deduction name” box, followed by code no. 626 and the
homeschooled.
amount of the deduction.
Dependent child qualifications
•
If the school is not registered with the IDOE, just enter the name
•
Your dependent child must be eligible to receive a free elementary
“XYZ Homeschool” in the “Enter deduction name” box, followed
or high school education (K-12 range) in an Indiana school cor-
by code no. 626 and the amount of the deduction.
poration;
•
You must be eligible to claim the child as a dependent on your
•
If the school has no designated name, enter “private school/home-
federal tax return; and
school” in the “Enter deduction name” box, followed by code
•
The child must be your natural or adopted child or, if not, you
no. 626 and the amount of the deduction.
must have been awarded custody of the child in a court proceed-
ing making you the court appointed guardian or custodian of the
For more information about this deduction, see Income Tax Informa-
child.
tion Bulletin #107 at
Education expenditure. This refers to any expenditures made in con-
Qualified patents income exemption deduction
622
nection with enrollment, attendance, or participation of your depen-
Some of the income from qualified patents included in federal taxable
dent child in a private elementary or high school education program.
income may be exempt from Indiana adjusted gross income tax. A
The term includes tuition, fees, computer software, textbooks, work-
qualified patent is a utility patent or a plant patent issued after Dec. 31,
books, curricula, school supplies (other than personal computers), and
2007, for an invention resulting from a development process conduct-
other written materials used primarily for academic instruction or for
ed in Indiana. The term does not include a design patent.
academic tutoring, or both. The term does not include the delivery of
instructional service in a home setting to your dependent child who is
The exemption includes licensing fees or other income received for the
enrolled in a school corporation or a charter school.
use of the patent, royalties received for the infringement, receipts from
the sale of a qualified patent, and income from the taxpayer’s own use
A “private elementary or high school education program” means at-
of the patent to produce the claimed invention.
tendance at a nonpublic school (including a private school, a parochial
school and a homeschool) in Indiana that satisfies a child’s obligation
Complete Schedule IN-PAT and enclose with your tax return when
for compulsory attendance at a school.
claiming this deduction. You may get Schedule IN-Pat at
The obligation for “compulsory attendance” means a child must be in
attendance in a school (public and/or private) for a minimum of 180
For more information about this deduction see Income Tax Informa-
days in a calendar year.
tion Bulletin #104 at
Note. No deduction will be available based on a child who is enrolled
Enter code 622 on Schedule 2 under line 11 if claiming this deduction.
in school for a period of less than 180 days in a calendar year.
Figure your deduction. If you made an unreimbursed education
expenditure during 2012 your deduction is:
(1) $1,000; multiplied by
(2) the number of qualified dependent children for whom you made
education expenditures.
Page 25
IT-40 Booklet 2012
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