Below is list of additional income that should be added to your Indiana return:
If you claimed a deduction on a Schedule C, C-EZ, E, or F for taxes paid based on, or measured by income and levied at a state level by any state in the U.S., you must add this deduction back to your Indiana return. DO NOT INCLUDE PROPERTY TAXES ON THIS LINE.
Net Operating Loss Add-Back
Any net operating loss that was reported on Schedule 1, line 8 of your federal return, must be added back to your Indiana return. List the amount of the loss as a positive number. (you may still be eligible to claim an Indiana NOL deduction on your state return)
OOS Municipal Obligation Interest Add-Back
Interest earned from a direct obligation of a state or political subdivision other than Indiana and was acquired after 12/31/2011 is taxable by Indiana. Interest earned from an obligation held before 1/1/2012 is not taxable by Indiana.
Current Year Conformity Add-Back
This add-back is specific to the annual current year conformity issues. Before the Indiana instructions were finalized, Indiana had not conformed to any changes to the IRC that may have become law after January 1, 2019. Therefore, the IRC used to figure the federal income may not be the same as the IRC used to figure the Indiana income. If the uncertainty still exists as to whether Indiana will conform, list your add-back as "other". If the items are adopted, you may have to amend your Indiana return at a different time.
Domestic Production Activities Add Back
This add-back has been repealed and is no longer required for tax year 2018.
For tax years prior to 2018, if you claimed a domestic production activities deduction on your federal Form 1040, line 35 for domestic production activities production, you must add it back to your Indiana return.
Section 179 Expense Excess Add Back
If you figured IRC section 179 using a ceiling amount of more than $25,000, you must add back the difference between it and $25,000. New- Special rules may apply if the Section 179 expensing is taken against property acquired in a like-kind exchange. See Information Bulletin #118 here.
Bonus Depreciation Amount
You must add back any bonus depreciation that was included in your federal adjusted gross income. To figure this amount, re-figure the net income (or loss) that would have been included in your federal AGI had the bonus depreciation not been used, then enter the difference which could be a negative or positive number.
Employer Student Loan Payment Add Back
If your employer paid any amount for your student loans and you excluded the payment from your federal gross income, add back the amount you excluded from your gross income. This amount must be added back regardless of whether your employer paid you the amount.
Meal Deduction Add Back
If you claimed a deduction for meal expenses with regard to food and beverages provided by a restaurant in computing your federal adjusted gross income; AND the deduction would have been limited to 50% of the meal expenses if the expenses had been incurred before Jan. 1, 2021, add back the amount deducted for federal purposes in excess of 50% of the food or beverage expenses.
Do not add back any amounts:
• Claimed as an itemized deduction for federal income tax purposes; or
• Any amount for which an exception to the 50% limitation was in effect for amounts paid before Jan. 1, 2021.
Student Loan Discharge Add Back
If you had a student loan discharged during the taxable year and you excluded the amount of the discharge from your federal gross income, add back the amount of discharged loans excluded from your federal gross income. Do not include amounts that would have been excluded from federal gross income prior to 2021. If you were insolvent at the time of the discharge, your addback is reduced by the amount that would have been excluded for federal income tax purposes if you had chosen to exclude the discharged debt from federal gross income under IRC § 108(a)(1)(B).
To enter these additions within your account, please follow the steps below:
- State Section
- Additions to Income
For more information on these Add-Backs, please click here.