According to the Indiana instructions, the following changes are being made for tax year 2022:
- Adjustments have been made for the add back relating to student loan discharge.
- A new credit (867) is available for qualifying donations to approved foster care organizations.
- A new credit (868) is available for the venture capital investment credit for amounts provided to a Qualified Indiana Investment Fund.
- A new credit (869) is available for qualified film and media productions.
- The Adoption Credit has been increased to 20% of the federal adoption credit or $2,500 per eligible child, whichever is less. Also, there is a $2,500 cap per eligible child if the credit is claimed
over multiple years. In addition, the adoption credit is now a refundable credit.
- Beginning in 2022, the Headquarters Relocation Credit (818) must be reported on Schedule IN-OCC.
- School Scholarship Tax Credit Contribution ceiling increased. The total of allowable net contributions to the program has increased to $18.5 million for the program’s fiscal year of July 1, 2022 through June 30, 2023.
- Automatic Taxpayer Refund. A $200 per individual automatic taxpayer refund is available for certain taxpayers who did not qualify for the automatic taxpayer refunds issued during 2022.
- A new deduction (635) is available for amounts paid from Indiana education scholarship accounts for qualifying expenses, but only to the extent the payment is included in federal gross income. See page 20 for more information.
- A new deduction (637) is available to report student loan interest payments to the extent the interest was paid by your employer and required to be added back to Indiana adjusted gross income.
- A new deduction (638) is available for amounts paid from Indiana enrichment scholarship accounts for qualifying expenses, but only to the extent the payment is included in federal gross income.
- For 2022, the COVID-related Employee Retention Credit Disallowed Expenses Deduction (634) is limited to certain cases.
- A new $3,000 exemption is available for qualifying adopted children.
- A new Schedule IN-DEP-A has been created to report any qualifying adopted children for purposes of claiming the adopted child exemption.
- A new Schedule IN-W is available to report taxes withheld on your behalf (and your spouse, if married filing jointly).
To view the full list of changes, please see page 3 of IT-40 Instructions.