Form It-40 - Indiana Full-Year Resident Individual Income Tax Instruction Booklet - 2011 Page 24
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60•
If the school has no designated name, enter “private school/home-
reimbursements and rebates of deductions previously itemized on
school” in the “Enter deduction name” box, followed by code no.
federal Schedule A.
626 and the amount of the deduction.
Enter code 616 on Schedule 2 under line 11 if claiming this deduction.
For more information about this deduction, see Income Tax
Information Bulletin #107 at
Solar powered roof vent or fan deduction
623
An Indiana resident may be eligible for a deduction up to $1,000 if a
Qualified patents income exemption deduction
622
solar powered roof vent or fan was installed on a building owned or
leased by the individual. A solar powered roof vent or fan is a roof vent
Some of the income from qualified patents included in federal taxable
income may be exempt from Indiana adjusted gross income tax. A
or fan that is powered by solar energy and used to release heat from a
qualified patent is a utility patent or a plant patent issued after Dec.
building.
31, 2007, for an invention resulting from a development process
conducted in Indiana. The term does not include a design patent.
The deduction must be claimed in the installation year, and is limited
to the smaller of:
The exemption includes licensing fees or other income received for the
•
One-half of the amount paid for labor and materials for the
use of the patent, royalties received for the infringement, receipts from
installation of a solar powered roof vent or fan, or
the sale of a qualified patent, and income from the taxpayer’s own use
•
$1000.
of the patent to produce the claimed invention.
Important. When claiming this deduction, maintain with your records
Complete Schedule IN-PAT and enclose with your tax return when
the following information (as the Department can require you to
claiming this deduction. You may get Schedule IN-Pat at
provide this information at a later date):
•
The installation date(s),
•
Proof of your costs for the installation of a solar powered roof
For more information about this deduction see Income Tax
vent or fan, and
Information Bulletin #104 at .
•
A list of the persons or corporation that supplied labor or
materials for the installation of the solar powered roof vent or fan.
Enter code 622 on Schedule 2 under line 11 if claiming this deduction.
Enter code 623 on Schedule 2 under line 11 if claiming this deduction.
Railroad unemployment and sickness benefits
624
Benefits issued by the U.S. Railroad Retirement Board are not taxable to
Indiana.
Schedule 3: Exemptions
Deduct unemployment and/or sick pay benefits issued by the U.S.
Important. Keep detailed information about the exemption(s) you are
Railroad Retirement Board on this line if:
claiming, such as full name(s), age(s), Social Security number(s), etc.
•
You included these benefits as taxable income on your federal tax
The Department can require you to provide this information at a later
return, and
date.
•
You did not already deduct these benefits on Schedule 2, lines 5
and/or 6.
Line 1
–
Exemptions
You are allowed $1,000 for each exemption claimed on your federal
Do not include any supplemental sick pay benefits on this line.
return. Enter in the box on line 1 the total number of exemptions
claimed on your federal return. Multiply $1,000 by that number, and
Make sure to keep the statements (such as Form 1099G) issued by the
enter the answer here.
U.S. Railroad Retirement Board as the Department may request them
at a later date.
Example. John and Lisa have a 12-year-old daughter. On John and
Lisa’s joint federal return they claim themselves and their daughter as
Enter code 624 on Schedule 2 under line 11 if claiming this deduction.
exemptions. They’ll enter 3 in the box on line 1 for a total of $3,000.
Recovery of deductions 616
If you do not have to file a federal return, you will need to complete a
You are not eligible for this deduction if you did not complete the
“sample” federal return to see how many federal exemptions you are
“other income” line on your federal Form 1040.
allowed to claim.
Generally, Indiana does not allow you to claim itemized deductions
Important. If no exemption is claimed on your federal return, you can
from federal Schedule A. However, if you reported recovered itemized
still claim yourself (even if you are claimed on a parent’s or guardian’s
deductions as “other income” on line 21 of your federal Form 1040,
return).
enter that amount on this line.
Line 2
–
Additional exemption for dependent child
A recovery is a return of an amount you deducted in an earlier year.
Important: The new Schedule IN-DEP must be filed when claiming
The most common recoveries are refunds (see Schedule 2, line 3),
this exemption. Keep reading to find instructions for this schedule.
Page 24
IT-40 Booklet 2011
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