What credits are available on my Indiana return?

Below is a list of credits that are available to you on your Indiana return:

Unified Tax Credit for the Elderly

You may qualify for this credit if you (and you spouse) meet ALL of the following:

• You and/or your spouse must have been 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 AGI is less than $10,000
• You must have been a resident of Indiana for at least 6 months out of the current tax year.
• You were not in prison for more than 180 days in the current tax year.
• You must claim the tax credit by June 30 of the tax year.

Credit For Contributions Made To Indiana Colleges And Universities

You may be able to claim a $100 credit ($200 if filing MFJ) for money or property donated to an Indiana college. 

Schedule IN-529: Education savings Plan Credit Menu

Beginning in 2018, you may be able to claim a credit for contributions to fund K-12 education in Indiana. Only contributions made to CollegeChoice 529 Education Savings Plan qualify for the credit. 

Credit for local taxes paid outside of Indiana

If you figured local county tax on line 9 of Form It-40 AND paid local tax outside of Indiana, you may be able to claim a credit. To figure the credit, enter the lesser of 

1. Amount of tax paid to non-Indiana locality
2. The amount of income taxed by the non-Indiana locality multiplied by the rate on Schedule CT-40, line 2
3. The amount of the Indiana County Income Tax shown on Form IT-40, line 9

Lake County Residential Income Tax Credit

You may be able to claim a credit if:

1. You paid property tax to Lake County on your main home
2. Your modified adjusted gross income is less than $18,600
3. You do not claim the Homeowner's Residential Property Tax Deduction on Indiana Schedule 

Credit for Taxes Paid to Another State

If you have income that is taxed in both Indiana and another state, you may be able to claim a credit for taxes paid to the other state. Some states have reciprocal agreements and do not qualify for the credit. See our KB article here for more information. 

Community Revitalization Enhancement District Credit

Allowable credit is the lesser of the available credit (25% of the qualified investment) or the county tax due on line 9 of Form IT-40

Adoption Credit

Credit has been increased to 20% of the federal adoption credit or $2,500 per eligible child, whichever is less. The adoption credit is now a refundable credit for Indiana

Economic Development for a Growing Economy Credit (Schedule IN-EDGE)/ Economic Development For A Growing Economy Retention Credit (Schedule In-Edge-R)

These credits are limited to businesses who conduct activities designed to create jobs in Indiana. You can find more information on this credit at the Indiana Economic Development website here.

Other Certified Credits (Schedule IN-OCC)

• Hoosier Business Investment Credit
• Natural Gas Commercial Vehicle Credit 
• School Scholarship Credit

Other Credits

• Airport Development Zone
• Alternative Fuel Vehicle Manufacturer Credit (Repealed for 2018)
• Blended Biodiesel
• Coal Gasification Technology Investment Credit 
• Enterprise Zone
• Ethanol Production
• Headquarters Relocation Credit
• Historic Building Rehabilitation
• Indiana’s Research Expense Credit
• Individual Development Account Credit
• Industrial Recovery Credit
• Military Base
• Neighborhood Assistance Credit
• New Employee
• Public School Educator Expense Credit
• Residential Historic Rehabilitation Credit
• Riverboat Building
• Venture Capitalist Investment Credit 

Program Entry

These credits can be entered in your account by following the steps below:

1. State
2. Edit (three dots)
3. Credits

For more information on these credits, please click here to view the IT-40 Booklet.