Form It-40 - Indiana Full-Year Resident Individual Income Tax Instruction Booklet - 2011 Page 43
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
60winnings from that state, enclose the W-2G issued by that state. Use
states do not have an income tax. You must file an Indiana resident
the amount of state tax withheld by that state on Line A of the Group A
return and pay Indiana tax on all your income.
Worksheet.
See the Combined Limitation on page 49.
Group B
Line 6
–
Other credits
Reciprocal Agreement (Wages, Salaries, Tips, and Commissions Only)
Each of the following credits has been assigned a three-digit code
Kentucky
Michigan
Ohio
number. When claiming the credit on Schedule 6 under line 6, enter
Pennsylvania
Wisconsin
the name of the credit, the three-digit code number and the amount
claimed.
If you were an Indiana resident during 2011 and had income from
one of the states listed in Group B, you are covered by a reciprocal
About airport development zone credits
agreement. However, this agreement only applies to income from
Certain areas within Indiana have been designated as airport
wages, salaries, tips and commissions. If you had other types of income
development zones (ADZ). These zones are established to encourage
from these states (such as business income, farm income, etc.), use the
investment and job growth in distressed urban areas.
Group A Worksheet to figure your credit.
Who is eligible to claim these credits?
Normally, employers in these states will withhold Indiana state tax from
your wages because of the reciprocal agreement. However, if the state
The following are eligible to claim the airport development zone
tax they withheld is not for Indiana, you must file a claim for refund
employment expense credit and/or the airport development zone loan
with that state. You still have to include this income on your Indiana
interest credit:
return and pay the Indiana tax. You’ll get some or all of the other state’s
•
Sole proprietors who operate and/or invest in a business located in
taxes back by filing a refund claim with them.
a zone, and/or
•
Businesses organized as partnerships, S corporations and
Note. Winnings from Indiana riverboats are not eligible for the
fiduciaries (who may pass through airport development zone
reciprocal agreement.
credits to their partners or shareholders).
Caution: You may have to make estimated tax payments to Indiana. If
Contact the Indiana Economic Development Corporation, One North
the reciprocal state employer does not withhold Indiana withholding
Capitol, Suite 700, Indianapolis, IN, 46204, or visit their website at
on your wage income, or doesn’t withhold enough, see page 10 for
for more information about these credits.
information on how to figure and pay estimated tax.
Airport development zone employment expense
If you were a full-year resident of one of the reciprocal states and your
credit 800
income from Indiana was from wages, salaries, tips and commissions,
This credit is based on qualified investments made within Indiana. It
you should file Form IT-40RNR, Reciprocal Nonresident Income
is the lesser of 10 percent of qualifying wages, or $1,500 per qualified
Tax Return. If you were a resident of one of the reciprocal states and
employee, up to the amount of tax liability on income derived from the
had other types of income from Indiana, or were a part-year Indiana
airport development zone.
resident, you will need to file Form IT-40PNR.
For more information, and how to calculate this credit, see Income Tax
Group C
Information Bulletin #66 at
and Indiana
Reverse Credit (Credit taken on nonresident return)
Schedule EZ, Parts 1, 2 and 3 at
Arizona
California
Oregon
Washington D.C.
Enter code 800 under line 6 if claiming this credit. See the Combined
If you were an Indiana resident during 2011 and had income from one
Limitation on page 49.
of the states in Group C, you must pay Indiana tax on all your income.
You will also need to file a nonresident return with the other state and
Note. A substitute Schedule EZ for the ADZ must be enclosed if
claim a credit on their tax return for the Indiana tax paid.
claiming this credit.
Group D
Airport development zone investment cost credit
No State Income Tax (No credit allowed)
801
Alaska
Florida
Nevada
This credit is based on qualified investments made within Indiana. It
South Dakota
Texas
Washington
can be up to a maximum of 30 percent of the investment, depending
Wyoming
on the number of employees, the type of business and the amount of
investment in an airport development zone.
If you were an Indiana resident during 2011 and had income from one
of the states in Group D, you are not allowed to claim this credit. These
For more information about this credit see Income Tax Information
Bulletin #66 at , contact the Indiana
Page 43
IT-40 Booklet 2011
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial