Tax Add-Back--If you did not complete Federal Schedules C, C-EZ, E, or F, which include sole proprietorship income, farm income, rental, partnership, S corporation, and trust and estate income (or loss), then do not complete this line.
Net Operating Loss Add-Back--Any net operating loss (NOL) deduction reported on line 21 of your federal Schedule 1 must be added back on this line. Write the amount of the net operating loss as a positive figure. (You may be eligible to claim an Indiana net operating loss deduction on Schedule 2, under line 11.)
OOS Municipal Obligation Interest Add-Back--Interest earned from a direct obligation of a state or political subdivision other than Indiana (out of state, or OOS) is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. Interest earned from obligations held or acquired before Jan. 1, 2012, is not subject to Indiana income tax and should not be reported as an add back.
Current Year Conformity Add-Back--Before this publication was finalized Indiana had not conformed to any changes to the Internal Revenue Code (IRC) that may have become law after Feb. 11, 2018. Therefore, the IRC used to figure Indiana income may not be the same as the IRC used to figure federal income.
Bonus Depreciation Add-Back--You must make an exception for any bonus depreciation deduction used for property placed in service after Sept. 11, 2001. Bonus depreciation is the additional first-year special depreciation deduction allowed under Section 168(k) of the Internal Revenue Code (IRC).
Section 179 Expense Add-Back--You may have figured an IRC Section 179 expense using a ceiling of more than $25,000 for federal tax purposes. Indiana allows you to figure IRC Section 179 expense using a ceiling of no more than $25,000. If you figured IRC Section 179 expense using a ceiling amount of more than $25,000, you will need to add back the difference between it and $25,000 on line 6.