Indiana allows an increased dependent child exemption for the first taxable year a qualifying dependent child is claimed on an Indiana state tax return. A qualifying child claimed for the first time may be eligible for a larger exemption than the standard additional dependent child exemption.
Program Entry
Indiana Return → Personal Information → Dependents Claimed for the First Time
What Information is Required?
Dependent Claimed for the First Time
Select the qualifying child being claimed as a dependent for the first taxable year in which the additional dependent child exemption is allowable and claimed on an Indiana state tax return.
Dependent Claimed for the First Time vs. Additional Dependent Exemption
The Dependent Claimed for the First Time exemption is a special benefit available in the first year a qualifying child is claimed on an Indiana state tax return. Indiana permits a $3,000 exemption instead of the $1,500 exemption for that one tax year. This special exemption is not available if the child could have been claimed for the $1,500 exemption in a prior year, even if the exemption was not actually claimed.
The Additional Dependent Exemption allows an additional $1,500 exemption for each qualifying dependent child who meets the state's eligibility requirements.
A dependent child may qualify for the Additional Dependent Exemption and also qualify as a Dependent Claimed for the First Time if all requirements are met.
Notes
- This exemption applies only to qualifying dependent children who are being claimed for the first time on an Indiana state tax return.
- A child is not considered to be claimed for the first time if the additional dependent child exemption was previously claimed by another taxpayer.
- A child is not considered to be claimed for the first time if the additional dependent child exemption was previously claimed or could have been claimed while the child was living outside Indiana.
- The dependent must also qualify for Indiana's additional dependent child exemption.
- Dependents claimed for the first time are reported on Schedule IN-DEP.