Form It-40 - Indiana Full-Year Resident Individual Income Tax Instruction Booklet - 2011 Page 21
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60For more information about this deduction see Income Tax
•
Licensed boarding or residential home, or
Information Bulletin #70 at
and Schedule
•
Certified Christian Science facility.*
IT-2440 at
The goal of the human services tax deduction is to reduce the affected
This deduction is limited to a maximum of $5,200 per qualifying
individual’s adjusted gross income tax liability to zero (0).
individual.
*An eligible Christian Science facility must be listed with and certified
Note. Social Security disability income does not qualify for this
by the Commission for Accreditation of Christian Science Nursing
deduction because Indiana does not tax this income.
Organizations/Facilities, Inc.
Enter code 602 on Schedule 2 under line 11 if claiming this deduction.
Generally, the deduction should not be used in conjunction with most
tax credits in order to create a refund.
Enterprise zone employee deduction
603
If you are a Medicaid recipient and live in one of the facilities listed
Certain areas within Indiana have been designated as enterprise zones.
above, to determine whether you are eligible for the deduction you
Enterprise zones are established to encourage investment and job
must first prepare your tax return without claiming a human services
growth in distressed urban areas.
deduction. Generally, if a refund is due, you are not eligible for a
deduction. File your return without claiming the deduction and a
Enterprise zones have been established in areas of certain cities/
refund will be issued. However, if an amount is due, you are eligible to
locations. Use this website to look up contact information for a
use a deduction.
particular enterprise zone:
Enter code 605 on Schedule 2 under line 11 if claiming this deduction.
Your employer will provide Form IT-40QEC to you if you are eligible to
claim this deduction.
Indiana lottery winnings deduction
606
The amount of the deduction is one-half (½) of the earned income
If you win any prize money from the Indiana Hoosier Lottery
shown on Form IT-40QEC or $7,500, whichever is less. If you and your
Commission, either by winning an instant game, an online game such
spouse both have received Form IT-40QEC, you may each take this
as Hoosier Lotto, Powerball, Lucky 5, Daily 3 & 4, Max 5, etc., you must
deduction for a combined maximum of $15,000 (no more than $7,500
report those winnings as income on your federal income tax return.
per qualifying person).
Most of these winnings are fully taxable by Indiana. However, some of
Enter code 603 on Schedule 2 under line 11 if claiming this deduction.
the winnings may be exempt from Indiana tax. Also, annuity payments
received for drawings held before July 1, 2002, are exempt from Indiana
Human services deduction 605
tax.
The human services deduction is intended to eliminate any individual
Complete the worksheet below to see if you are eligible for a deduction.
income tax imposed on Medicaid recipients who are living in a:
•
Hospital,
Note. Winnings from other state lotteries, Indiana pari-mutuel horse
•
Skilled nursing facility,
races or out-of-state tracks, Indiana and out-of-state riverboats and
•
Intermediate care facility,
other gambling winnings, are fully taxable in Indiana and should not be
•
Licensed county home,
deducted from your taxable income.
Enter code 606 on Schedule 2 under line 11 if claiming this deduction.
Lottery Winnings Worksheet
A. Enter the amount of winnings from the Hoosier Lottery Commission that you have reported
on your federal Form 1040, line 21 ............................................................................................................................................... A $
B. Locate those W-2Gs (issued by the Hoosier Lottery
Commission) showing Indiana state withholding in Box 14.
Add the amounts from Box 1 of each of those W-2G’s; enter
total here .......................................................................................................................................... B $
C. Exemption ......................................................................................... C $
1, 2 0 0
D. How many W-2Gs did you locate in step B above (e.g. 1, 2, etc.)? .. D X
E. Multiply line C by line D; enter result here ..................................................................................... E $ -
F. Subtract line E from line B; enter result here .............................................................................................................................. F $ -
G. Subtract line F from line A. Enter here and on Schedule 2 under line 11 .................................................................................. G $
Page 21
IT-40 Booklet 2011
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