Indiana has made the following changes to the tax laws for 2019
- Your Indiana Adjusted Gross Income will conform to the Internal Revenue Code for federal changes adopted after Jan. 1, 2019. If the 2020 Indiana General Assembly does not conform to the most current changes to the Internal Revenue Code, you may have to amend your tax return at a later date to reflect any differences between Indiana and federal law. It may benefit you to check the Indiana Department of Revenue page periodically for updates.
- Bonus Depreciation and Section 179 Expense add-back has been updated. Please see page 13 of the IT-40 instructions for more information.
- Indiana has phased out the amount of wagering taxes required to be added back based on income. Please see page 12 of the IT-40 instructions for more information.
- Indiana has eliminated the June 30th deadline to claim the Unified Tax Credit for the Eldery
- School Scholarship Tax Credit Contribution Ceiling has increased allowable contributions to 15 million from July 1, 2019- June 30, 2020.
- Beginning with the 2019 tax year the Headquarters Relocation Credit may be refundable.
- Schedule IN-529R (Recapture of Indiana’s College Choice 529 Education Savings Plan Credit) has been replaced by IN-CR (Credit Recapture). Please see page 29 of the IT-40 instructions for more information.
- Indiana is phasing out tax on the Military Retirement Income and/or Survivor’s Benefits. See page 21 of the IT-40 instructions to calculate your deduction.
- The Civil Service Annuity Deduction worksheet has been adjusted to include both tier 1 and tier 2 railroad retirement income to calculate the deduction. Please see page 18 of the IT-40 instructions for more information.