Form It-40 - Indiana Full-Year Resident Individual Income Tax Instruction Booklet - 2011 Page 52
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60If only one of you is subject to county tax, then you may use all of the
Line 2
exemptions from Schedule 3, line 5, except for your spouse’s personal
If you claimed a non-Indiana locality earnings deduction on Schedule
exemption, to figure your tax. See Section 2: Line-by-Line Instructions
2, line 8, enter that amount on this line in Column A. If you are
below for more information.
completing Column B instead, and your spouse is the one taking this
deduction, then enter it in Column B.
County Tax Schedule CT-40
Line 4
Section 1: Line-by-Line Instructions
Find your county on the County Income Tax Chart on the back of
Schedule CT-40. Find the rate from the Resident Rate column and enter
Where did you live?
it here.
Did you live in a county on Jan. 1, 2011, that has a tax? If “yes”,
complete Section 1 for yourself, and skip Section 2. If your answer is
Important. This year Indiana counties were allowed to adopt or
“no”, skip Section 1 and go to Section 2: Line-by-Line Instructions.
increase their local income tax rates through Oct. 31, 2011. This
publication was finalized before that date. This means your county tax
Did your spouse live in a county on Jan. 1, 2011, that has a tax? If yes,
rate on the back of Schedule CT-40 may not be correct. We encourage
complete Section 1 for your spouse, and skip Section 2. If your answer
you to contact us in one of the following ways to get an updated list of
is no, skip Section 1 and go to Section 2: Line-by-Line Instructions.
the rates before filing. To get the updated list, you may:
•
Log on to the Department’s website at:
Line 1
•
Call the form order request line at (317) 615-2581 to have one
If you are filing a single return or are married filing separately, enter in
mailed to you.
Column A the state taxable income from line 7 of Form IT-40.
•
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.
If you are filing a joint return and you both lived in the same county on
Jan. 1, 2011
, enter in Column A the state taxable income from line 7 of
1
Tax returns filed using the wrong rates will be adjusted. This may result
Form IT-40. Leave Column B blank.
in a reduced refund or an increase in the amount you owe.
Example. On Jan. 1, 2011, Jack and Diane lived in the same county,
Line 6
and that county has a tax. They will enter their Form IT-40, line 7
Add the amounts from line 5, Columns A and B. If you were a Perry
combined state taxable income in Column A.
County resident and worked in the Kentucky counties of Breckinridge,
Hancock or Meade, complete lines 7 and 8. Otherwise, enter the total
If you are filing a joint return and you and your spouse lived in
here and on line 9.
different counties on Jan. 1, 2011, or if Lake County adopted a tax and
you lived in different Lake County cities or towns on Jan. 1, 2011
,
1
Line 7
enter each person’s share of state taxable income from Form IT-40, line
Enter here the amount of income taxed by any of the Kentucky counties
7 in the appropriate columns.
listed on line 6.
Lake County residents should see the Special Instructions for Lake
1
Line 9
County Residents on page 54 for more information.
Subtract the amount on line 8 from the amount on line 6. Enter that
amount here or, if there are no entries on those lines, enter the amount
Example. Simon and Tina married in 2011 and are filing a joint return.
from line 6. Also, enter this amount on your IT-40, line 9.
On Jan. 1, 2011, Simon lived in Greene County and Tina lived in
Clay County. Their Form IT-40 line 7 income of $36,300 includes the
following breakdown:
County Tax Schedule CT-40
Section 2: Line-by-Line Instructions
Simon: $20,000 wages
+
150 (1/2 joint interest income)
Complete Section 2 if, on Jan. 1, 2011, you were a resident of Lake
- 1,000 exemption
County, Lake County did not adopt a tax, and you worked in a county
$ 19,150 income for CT-40 Section 1, line 1, Column A
that does have a county tax.
Tina:
$18,000 wages
Line 1
+
150 (1/2 joint interest income)
Enter your principal employment income for the year. This includes
- 1,000 exemption
$ 17,150 income for CT-40 Section 1, line 1, Column B
income from wages, tips, salaries and commissions; net self-
employment income from federal Schedule C/C-EZ; federal Form
1065, Schedule K-1; and/or net farm income from federal Schedule F.
Example. The circumstances are the same as the example above except
Do not include passive-source income like non-business interest and
that Tina lived in Lake County, which does not have a county tax.
dividends, pension, capital gains, farm rental, etc. Also, do not include
Simon would still enter his $19,150 share of the Form IT-40 line 7
amount on CT-40 Section 1, line 1, Column A. However, Column B
income from a part-time job if you hold it at the same time you have a
full-time job.
will be left blank since Tina won’t owe a county tax.
Page 52
IT-40 Booklet 2011
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