Indiana offers a variety of deductions that may reduce Indiana taxable income. Most of these deductions require additional documentation or eligibility requirements established by Indiana law.
Program Entry
Indiana Return → Subtractions from Income → Other Deductions
The Following Information Can Be Added
Civil Service Annuity Deduction (Code 601)
A deduction for qualifying civil service retirement annuity income included in federal adjusted gross income.
Enterprise Zone Employee Deduction (Code 603)
A deduction available to qualified employees who live and work in an Indiana Enterprise Zone.
Human Services Deduction (Code 605)
A deduction for certain human services compensation received through approved Indiana programs.
Indiana Partnership Long-Term Care Policy Premiums Deduction (Code 608)
A deduction for qualifying premiums paid for Indiana Partnership Long-Term Care insurance policies.
Recovery of Deductions (Code 616)
A deduction for amounts included in federal income that represent a recovery of a previously deducted item.
National Guard and Reserve Component Members Deduction (Code 621)
A deduction for qualifying income received as a member of the National Guard or reserve component of the armed forces.
Qualified Patents Income Exemption (Code 622)
A deduction for qualifying income derived from approved patents.
Railroad Unemployment and Sickness Benefits Deduction (Code 624)
A deduction for railroad unemployment and sickness benefits included in federal income.
Olympic/Paralympic Medal Winners Deduction (Code 627)
A deduction for certain income related to Olympic and Paralympic medals and prize money.
Indiana Lottery Winnings Annuity Deduction (Code 629)
A deduction for qualifying annuity payments received from Indiana lottery winnings.
Repayment of Previously Taxed Income Deduction (Code 630)
A deduction for income that was previously taxed and later repaid.
Infrastructure Fund Gift Deduction (Code 631)
A deduction for qualifying contributions made to the Indiana Infrastructure Fund.
Government or Civic Group Capital Contribution Deduction (Code 633)
A deduction for certain capital contributions made to governmental entities or qualifying civic organizations.
COVID Related Employee Retention Credit Disallowed Expenses Deduction (Code 634)
A deduction for expenses related to the federal Employee Retention Credit that were disallowed federally but permitted by Indiana.
Indiana Education Scholarship Account Deduction (Code 635)
A deduction for contributions made to a qualifying Indiana Education Scholarship Account.
Indiana Only Tax-Exempt Bonds Deduction (Code 636)
A deduction for interest earned from qualifying Indiana tax-exempt bonds.
Employer Student Loan Payment Interest Deduction (Code 637)
A deduction for qualifying student loan interest paid on a taxpayer's behalf by an employer and included in income.
Indiana Enrichment Scholarship Account Deduction (Code 638)
A deduction for contributions made to a qualifying Indiana Enrichment Scholarship Account.
Small Employer Insurance Premium Deduction (Code 639)
A deduction available to qualifying small employers for certain health insurance premium expenses.
Specified Research or Experimental Expenditures Deduction (Code 641)
A deduction related to certain research or experimental expenditures allowed under Indiana law.
Career Scholarship Account (CSA) Deduction (Code 642)
A deduction for contributions made to an eligible Career Scholarship Account.
Health Care Sharing Ministry Deduction (Code 643)
A deduction for qualifying payments made to a health care sharing ministry.
Notes
- Most deductions require supporting documentation and should only be claimed if the taxpayer meets all eligibility requirements.
- Some deductions are limited by Indiana law and may require additional worksheets or schedules.
- Retain all records supporting any deduction claimed on the Indiana return.