Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2012 Page 45
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64He will enter the following information on the Group A Worksheet.
If you were an Indiana resident during 2012 and had income from one
of the states in Group C, you must pay Indiana tax on all your income.
A. $300 (tax paid to Illinois)
You will also need to file a nonresident return with the other state and
B. $340 ($10,000 x .034, tax due to Indiana)
claim a credit on their tax return for the Indiana tax paid.
C. $870 (Form IT-40 line 8)
Group D
Ryan’s credit is $300, which is the lesser of A, B and C.
No State Income Tax (No credit allowed)
Alaska
Florida
Nevada
Exception: Gambling winnings from other states. If you’re not
South Dakota
Texas
Washington
required to file another state’s income tax return to report gambling
Wyoming
winnings from that state, enclose the W-2G issued by that state. Use
the amount of state tax withheld by that state on Line A of the Group
If you were an Indiana resident during 2012 and had income from one
A Worksheet.
of the states in Group D, you are not allowed to claim this credit. These
states do not have an income tax. You must file an Indiana resident
Group B
return and pay Indiana tax on all your income.
Reciprocal Agreement (Wages, Salaries, Tips, and Commissions
Only)
See the Combined Limitation on page 51.
Kentucky
Michigan
Ohio
Line 6
–
Other credits
Pennsylvania
Wisconsin
Each of the following credits has been assigned a three-digit code
If you were an Indiana resident during 2012 and had income from one
number. When claiming the credit on Schedule 6 under line 6, enter
of the states listed in Group B, you are covered by a reciprocal agree-
the name of the credit, the three-digit code number and the amount
ment. However, this agreement only applies to income from wages,
claimed.
salaries, tips and commissions. If you had other types of income from
these states (such as business income, farm income, etc.), use the
About airport development zone credits
Group A Worksheet to figure your credit.
Certain areas within Indiana have been designated as airport develop-
ment zones (ADZ). These zones are established to encourage invest-
Normally, employers in these states will withhold Indiana state tax
ment and job growth in distressed urban areas.
from your wages because of the reciprocal agreement. However, if the
state tax they withheld is not for Indiana, you must file a claim for
Who is eligible to claim these credits?
refund with that state. You still have to include this income on your
The following are eligible to claim the airport development zone
Indiana return and pay the Indiana tax. You’ll get some or all of the
employment expense credit and/or the airport development zone loan
other state’s taxes back by filing a refund claim with them.
interest credit:
•
Sole proprietors who operate and/or invest in a business located
Note. Winnings from Indiana riverboats are not eligible for the recip-
in a zone, and/or
rocal agreement.
•
Businesses organized as partnerships, S corporations and fiducia-
ries (who may pass through airport development zone credits to
Caution: You may have to make estimated tax payments to Indiana.
their partners or shareholders).
If the reciprocal state employer does not withhold Indiana withhold-
ing on your wage income, or doesn’t withhold enough, see page 11 for
Contact the Indiana Economic Development Corporation, One North
information on how to figure and pay estimated tax.
Capitol, Suite 700, Indianapolis, IN, 46204, or visit their website at
for more information about these credits.
If you were a full-year resident of one of the reciprocal states and your
income from Indiana was from wages, salaries, tips and commissions,
Airport development zone employment expense
you should file Form IT-40RNR, Reciprocal Nonresident Income Tax
credit 800
Return. If you were a resident of one of the reciprocal states and had
This credit is based on qualified investments made within Indiana. It
other types of income from Indiana, or were a part-year Indiana resi-
is the lesser of 10 percent of qualifying wages, or $1,500 per qualified
dent, you will need to file Form IT-40PNR.
employee, up to the amount of tax liability on income derived from
the airport development zone.
Group C
Reverse Credit (Credit taken on nonresident return)
For more information, and how to calculate this credit, see Income
Arizona
California
Oregon
Washington D.C.
Tax Information Bulletin #66 at
and Indi-
ana Schedule EZ, Parts 1, 2 and 3 at
Page 45
IT-40 Booklet 2012
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