Who Should File?
You may need to file an Indiana income tax return if:
- You lived in Indiana and received income, or
- You lived outside Indiana and had any income from Indiana.
Note: If you and your spouse file a joint federal return, you must file a joint return with Indiana. If you and your spouse file separate federal returns, you must file separate returns with Indiana.
There are four types of returns available. The type you need to file is generally based on your residency status. Read the following to decide if you are a full-year resident, part-year resident, or nonresident of Indiana, and which type of return you should file.
Full-year residents:
Full-year residents must file Form IT-40, Indiana Full-Year Resident Individual Income Tax Return or Form IT-40EZ for Full-Year Indiana Resident Filers with No Dependents. If you filed a federal Form 1040EZ, were a full-year resident of Indiana, claim only the renterÆs deduction and/or unemployment compensation deduction, and have only Indiana state and county tax withholding credits or an earned income credit, then you should file the simplified Form IT-40EZ. If you are not eligible to file Form IT-40EZ, or have any other deductions or credits, you must file Form IT-40.
You are a full-year Indiana resident if you maintain your legal residence in Indiana from Jan. 1 û Dec. 31 of the tax year. You do not have to be physically present in Indiana the entire year to be considered a full-year resident. Residents, including military personnel, who leave Indiana for a temporary stay, are considered residents during their absence.
Retired persons spending the winter months in another state may still be full-year residents if:
- They maintain their legal residence in Indiana and intend to return to Indiana during part of the taxable year,
- They retain their Indiana driverÆs license,
- They retain their Indiana voting rights, and/or
- They claim a homestead deduction on their Indiana home for property tax purposes.
Indiana allows $1,000 for each exemption claimed on your federal return, plus an additional $1,500 for certain dependent children. If you did not have to file a federal return, you should complete a "sample" federal return to see how many exemptions you are eligible to claim.
If you were a full-year resident of Indiana and your gross income (the total of all your income before deductions) was greater than your total exemptions, you must file Indiana Form IT-40 or IT-40EZ.
If your gross income is less than your total exemptions, you are not required to file. However, you may want to file a return to get a refund of any state and/or county tax withheld by your employer, or other refundable credits, such as an earned income credit.
Part-year residents and full-year nonresidents
If you were a part-year resident and received income while you lived in Indiana, you must file Indiana Form IT-40PNR, Part-Year Resident or Nonresident Individual Income Tax Return.
If you were a legal resident of another state and had income from Indiana (except certain interest, dividends, or retirement income), you must file Form IT-40PNR.
Full-year residents of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin
If you were a full-year resident of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and your only income from Indiana was from wages, salaries, tips or commissions, then you need to file Form IT-40RNR, Indiana Reciprocal Nonresident Individual Income Tax Return.
*Exception. In Revenue Ruling 2013-17, the U.S. Department of the
Treasury and the Internal Revenue Service (IRS) ruled that same-sex
couples, legally married in jurisdictions that recognize their marriages,
will be treated as married for federal tax purposes. Under
Indiana law, same-sex couples are required to file separate individual
income tax returns with Indiana. Check the Department’s webpage at
www.in.gov/dor/4895.htm for guidance on how to properly file with
Indiana.