Indiana offers several credits that may reduce the amount of tax owed or increase a refund. Some credits are refundable, while others are nonrefundable. Many credits require additional schedules, worksheets, certificates, or supporting documentation. Review each credit carefully to determine eligibility before entering information on the return.
Unified Tax Credit for the Elderly
A credit available to qualifying taxpayers who are age 65 or older and meet Indiana's income requirements. The credit may be up to $140 and is based on the taxpayer's filing status and income.
You may qualify for this credit if you (and your spouse) meet all of the following requirements:
- You and/or your spouse were age 65 or older by the end of the tax year.
- If you were married and living together at any time during the year, you must file a joint return.
- Your federal adjusted gross income (AGI) is less than $10,000.
- You were a resident of Indiana for at least six months during the tax year.
- You were not imprisoned for more than 180 days during the tax year.
Credit for Contributions Made to Indiana Colleges and Universities (Schedule CC-40)
A credit equal to 50% of qualified contributions, up to a maximum credit of $100, for contributions made to eligible Indiana colleges, universities, and scholarship foundations.
Schedule IN-529: Education Savings Plan Credit
A credit for contributions made to an Indiana CollegeChoice 529 Education Savings Plan. Contributions may qualify for a credit subject to Indiana limitations and annual maximums.
Schedule IN-ABLE: ABLE 529 Savings Plan Credit
A credit for contributions made to an Indiana ABLE Authority savings account established for an eligible individual with disabilities.
Credit for Local Taxes Paid Outside of Indiana
A credit available to Indiana residents who:
- Paid local income taxes to another state or locality;
- Did not receive a refund of those taxes; and
- Did not claim a credit for those same taxes against Indiana county income tax.
A worksheet is required to calculate the allowable credit.
Lake County Residential Income Tax Credit
A credit available to qualifying Lake County residents who meet all of the following requirements:
- Paid Lake County residential income tax during the tax year;
- Had Indiana adjusted gross income below the annual limit established by Indiana law; and
- Claimed the Indiana Residential Property Tax Deduction on the Indiana return.
Headquarters Relocation Credit (Refundable Portion)
A refundable credit available to businesses that relocate qualifying headquarters operations to Indiana and receive approval through the Indiana Economic Development Corporation (IEDC).
Credit for Taxes Paid to Another State
A credit available when the same income is taxed by both Indiana and another state. This credit helps prevent double taxation of income earned outside Indiana but taxed by Indiana residents.
Community Revitalization Enhancement District Credit
A credit available for qualified investments, redevelopment activities, or expenditures made within a designated Community Revitalization Enhancement District (CRED).
Adoption Credit
A credit available for qualified adoption expenses related to the adoption of an eligible child.
Other Credits
A category used to enter Indiana credits that are not separately listed in the Credits menu but are supported by Indiana forms, schedules, or credit certificates.
Schedule IN-EDGE - Economic Development for a Growing Economy Credit
A credit available to approved businesses that create new jobs and make qualifying investments in Indiana through the Economic Development for a Growing Economy (EDGE) program.
Schedule IN-EDGE-R - Economic Development for a Growing Economy Retention Credit
A credit available to approved businesses that retain existing jobs and business operations within Indiana through the EDGE Retention program.
Schedule IN-OCC - Other Certified Credits
Used to report certified Indiana credits approved by the Indiana Economic Development Corporation or another authorized Indiana agency. Eligible credits may include a variety of economic development, redevelopment, and investment incentive programs.
Program Entry
To claim an Indiana income tax credit, go to:
- State
- Edit Indiana using the three dots
- Credits
Notes
- Some credits require additional schedules, worksheets, certificates, approval letters, or supporting documentation.
- Certain credits are refundable, while others may only reduce Indiana tax liability to zero.
- Credits claimed through Schedule IN-EDGE, Schedule IN-EDGE-R, and Schedule IN-OCC generally require certification from the appropriate Indiana agency.
- Taxpayers claiming the Credit for Local Taxes Paid Outside of Indiana must complete the applicable worksheet to determine the allowable credit.
- Retain copies of all schedules, worksheets, certifications, and supporting documentation used to claim a credit.