Form It-40 - Indiana Full-Year Resident Individual Income Tax Instruction Booklet - 2011 Page 26
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60Schedule 5: Credits
When you make purchases from a company in Indiana, that company
is responsible for collecting the Indiana sales tax from you. When you
make purchases from an out-of-state company, you are responsible
Lines 1 and 2 – Indiana state and county tax withheld
for making sure the use tax is paid. Either the out-of-state company
The amount of state tax withheld is usually shown in box 17 and the
collects the tax from you, or you must pay the tax directly to the State
amount of county tax withheld is usually shown in box 19 of the W-2s.
of Indiana.
Indiana state withholding amounts may also be present on Form WH-
18, 1099G and 1099R.
Complete the worksheet on page 25 to figure your tax. If you paid
sales tax to the state where the item was originally purchased, you are
You must enclose your withholding statements with your tax return to
allowed a credit against your Indiana use tax for an amount paid up to
verify amounts withheld. Failure to enclose all necessary withholding
7 percent.
statements will result in a reduced refund or increase in the amount
you owe.
Line 2
–
Household employment taxes
If you paid cash wages during 2011 to an individual who is not
•
If you had more than one job, enclose withholding statements
•
Your spouse,
from each job so you can get credit for all Indiana state and county
•
Your child under age 21,
tax withheld.
•
Your parent,
•
If you had Indiana state and/or county tax withheld on any other
•
An employee under age 18;
federal form, such as a W-2G, 1099G or 1099R, you must enclose
the form with the tax return to get credit for the amounts withheld.
And the individual worked in and around your home as a baby-sitter,
•
If you are filing a joint return, be sure to include your spouse’s
nanny, health aide, private nurse, maid, caretaker, yard worker or
withholding statements if they show Indiana state and/or county
someone who does similar domestic duties, then that individual may
tax withholding amounts.
be defined as your employee.
•
Use of substitute W-2s will delay the processing of your return
and/or refund.
See Federal Publication 926, Household Employer’s Tax Guide, for more
information on how to define an employee. Visit
or call
Note. Do not claim credit for taxes withheld for states other than
the IRS at 1-800-829-1040.
Indiana or for localities outside Indiana.
If you paid cash wages over $1,700 to a household worker who is your
A note about your W-2s. It is important that your W-2 form is
employee, or total cash wages of $1,000 or more in any calendar quarter
readable. The income and state and county tax amounts withheld are
of 2010 or 2011 to all household employees, you should have withheld
verified on every W-2 form that comes in with your tax return. If you
state and county income taxes. To pay these taxes on your Indiana
are not filing electronically, we encourage you to enclose the best copy
income tax return, contact the Department for Schedule IN-H, or
available when you file.
download one from
Line 3
–
2011 Estimated tax paid
Line 3 – Indiana advance earned income credit
If you made estimated tax payments, enter the total paid for 2011 on
payment (from W-2s)
this line. Also, include any extension payment made with Form IT-9
Enter the total amount of Indiana advance earned income credit
“Extension of Time to File” for tax year 2011.
payments you received. This amount is shown on your W-2 form in
the box directly beneath box 19 (‘INADV’ should be in the box directly
Note. Do not include on this line any estimated tax paid for tax year
beneath box 20).
2012.
Line 4 – Recapture of Indiana’s CollegeChoice 529
Line 4 - Unified tax credit for the elderly
education savings plan credit
You may be able to claim a credit if you or your spouse meet all the
You may be eligible for a credit if you made a contribution(s) to
following requirements:
Indiana’s CollegeChoice 529 education savings plan (see instructions
•
You and/or your spouse must have been age 65 or older by Dec.
on page 44 for credit details). However, if you made a non-qualified
31, 2011,
withdrawal(s) from this plan, you will probably have to repay some or
•
If married and living together at any time during the year, you
all of any credits previously claimed.
must file a joint return,
•
The amount on line 1 of Form IT-40 must be less than $10,000,
Withdrawals made for higher education expenses tend to be qualified
•
You must have been a resident of Indiana for six months or more
withdrawals. Other withdrawals may fall under the category of “non-
during 2011, and
qualified”. For more information about withdrawals, contact the
•
You must not have been in prison for 180 days or more in 2011.
Department for Income Tax Information Bulletin #98 at
Get Schedule IN-529R at
Note. Disabled persons under age 65 do not qualify for this credit.
to figure any amount to be recaptured.
Page 26
IT-40 Booklet 2011
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