You may be able to take the renter’s deduction if:
• You paid rent on your principal place of residence, and
• You rented a place that was subject to Indiana property tax.
Your “principal place of residence” is the place where you have your true, fixed, permanent home and where you intend to return after being absent. If you rented a manufactured home or paid rent for your manufactured home lot, you may claim the renter’s deduction if the above requirements are met. Rent paid for summer homes or vacation homes is not deductible.
You cannot claim the renter’s deduction if the rental property was not subject to Indiana property tax. Examples of this type of property are:
• Government owned housing,
• Property owned by a nonprofit organization,
• Student housing,
• Property owned by a cooperative association, and
• Property located outside of Indiana.
How do I report my deduction? First, complete the information area by entering:
• The address where rented if it’s different from the address on the front of the return (leave blank if it is not different),
• The landlord’s name and address,
• The total amount of rent paid, and
• The number of months you lived there.
If you moved during the year or had more than one landlord, you must list the same information for each place that you rented. Enclose additional pages if necessary.
How much rent can I deduct? You can deduct up to $3,000 or the amount of rent paid, whichever is less.
Example. Emily paid $4,800 in rent on her principal place of residence. She will claim a $3,000 renter’s deduction. Example. Bill paid $400 rent for his first apartment. He moved to another location during the year and paid $2,800 rent for the rest of the year. His deduction will be limited to $3,000, even though he paid $3,200 altogether.
Important. Keep copies of your rental receipts, landlord identifying information and lease agreements as the department can require you to provide this information.
For more information about this deduction, see Income Tax Information
Bulletin #38 at www.in.gov/dor/3650.htm.