Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2012 Page 55
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. Daniel had two jobs at the same time. On Job #1 he worked
Note. You cannot claim your spouse’s personal exemption. Exemp-
30 hours a week and earned $270 a week. On Job # 2 he worked 10
tions for dependents can be claimed by either spouse, as long as the
hours a week and earned $80 a week. Daniel should enter only the
total of line 4, Columns A and B is not greater than your total exemp-
amount he earned from Job #1 ($270 a week) as his principal employ-
tions on Schedule 3, line 5.
ment income.
Example. On Jan. 1, 2012, Jack and Sue lived in a county that does not
Line 2
have a tax. Jack worked in a county that does have a tax. They claimed
themselves and their dependent child for exemption purposes. They
You may use certain deductions to lower the amount of income to be
claimed $4,500 in total exemptions ($1,000 each plus an additional
taxed. These deductions must have been claimed on your federal
$1,500 for their dependent child) on their tax return. Jack is allowed
tax return and/or on Indiana Schedule 2, and must have a direct
to use $3,500, or all of the total exemptions except for Sue’s $1,000
relationship to the income being taxed on line 1.
personal exemption.
Allowable deductions from your Indiana return can include:
Line 6
•
airport development zone employee deduction
•
enterprise zone employee deduction
Find your county on the County Income Tax Chart on the back of
•
active military pay deduction
Schedule CT-40. Find the rate from the Nonresident Rate column (the
•
National Guard and reserve component member’s deduction
second column of rates over) and enter it here.
•
(Indiana) medical savings account deduction
Important. This year Indiana counties were allowed to adopt or in-
Allowable deductions from your federal return can include:
crease their local income tax rates through Oct. 31, 2012. This publica-
•
certain business expenses of reservists, performing artists and fee-
tion was finalized before that date. This means your county tax rate
based government officials
on the chart on the back of Schedule CT-40 may not be correct. We
•
health savings account deduction
encourage you to contact us to get an updated list of the rates before
•
moving expenses*
filing. To get the updated list, you may:
•
deductible part of self-employment tax
•
Log on to the Department’s website at
•
SEP, SIMPLE and qualified plans
•
Call the form order request line at (317) 615-2581 to have one
•
self-employed health insurance deduction
mailed to you.
•
IRA deduction
•
Visit or call a district office. See page 42 for these locations.
•
Archer MSA deduction.
•
Call our main tax line at (317) 232-2240, Monday – Friday, 8 a.m.
to 4:30 p.m., and a representative will assist you.
Note. Do not include the domestic production activities deduction.
Tax returns filed using the wrong rates will be corrected. This may
* The moving expense deduction will be allowed only to the extent the
result in a reduced refund or an increase in the amount you owe.
income earned from that move is being taxed on Section 2, line 1.
Line 8
Example. Ann’s only income was $21,000 in wage income, which she
Add the amounts from line 7, Columns A and B. Enter the total here
reported on line 1. She claimed a $2,000 IRA deduction on her federal
and on line 9 of Form IT-40.
Form 1040. She should claim the $2,000 IRA deduction on this line.
Note. If you have figured a tax in Section 1 and Section 2, add the
Example. Tim and Jane file a joint tax return and live in a county that
amounts from Section 1, line 9 and Section 2, line 8, and enter it on
does not have a tax. Jane does not owe county tax, but Tim does be-
Form IT-40, line 9.
cause his business is in a county that has a tax. She has a $21,000 wage
income and a $1,400 moving expense. Tim has $23,000 net income
Special Instructions for Lake County
from his photography shop and claimed a $700 self-employed SEP
Residents
deduction. He will enter his $23,000 income on line 1 of Section 2 and
the $700 SEP deduction on line 2 of Section 2. He’s not eligible to take
If you and/or your spouse lived in Lake County on Jan. 1, 2012, then
the moving expense deduction because the wage income that it is in
read the following instructions.
relation to is not being taxed for county tax purposes.
For the 2012 tax year, Indiana counties were allowed to adopt or
Line 4
increase their county tax rates through Oct. 31, 2012. This publication
If you are filing a single or married filing separately tax return, enter
was finalized before that date. This means that even though no tax
your total exemptions from Schedule 3, line 5. If you are filing a joint
rates are listed with Lake County on the chart on the back of Schedule
tax return, enter your exemption(s) (personal, over 65 and/or blind)
CT-40, the county may have adopted a local income tax before the end
included on Schedule 3, line 5.
of the year.
Page 55
IT-40 Booklet 2012
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial