Indiana Filing Requirements: Everything You Need to Know
According to Indiana filing requirements, all state income tax returns must be filed by April 15.3 min read
According to Indiana filing requirements, all state income tax returns must be filed by April 15. In 2018, this would have been applicable to your 2017 Indiana State Income tax return.
You can get an automatic 60-day grace period by completing and filing Form IT-9, as long as you do so before the deadline. It is important to note that this does not extend the time you have to pay the taxes you owe to the state. Even if you have filed an Indiana state tax extension, you need to make sure you've paid 90 percent or more of the applicable taxes by the deadline. Failure to do so could result in penalties. If you owe Indiana state tax, you will need to fill out Form ES-40.
If you have paid 90 percent or more of the taxes you owe and have filed federal tax extension Form 4868, then you automatically get an extension of the deadline to file your state tax return. In this case, you don't need to submit Form IT-9.
Whether you filed Form 4868 or Form IT-9, your updated income tax return deadline in Indiana is Nov. 15, 2018. This particular state collects a flat tax of 3.4 percent of one's federal adjusted gross income with modification. In addition, most counties in Indiana have tax rates and collect income tax.
Requirements of Being Classified as a Resident of Indiana
If you have lived in Indiana for the entire tax year, then you are an Indiana resident. However, you can also leave the state temporarily and still retain your status as a resident. Retirees, for example, can retain full residency status even if they spent several months of the year out of state. The only conditions are:
- That they intend to return to Indiana.
- They retain their voting rights in the state.
- They keep their Indiana driver's license.
As an Indiana resident with a gross income that exceeds your total exemptions, you are required to file your tax return with the state. You will typically need to fill out Form IT-40. In certain circumstances, you might be able to file Form IT-40EZ. This applies in the following circumstances:
- If your income tax comes exclusively from Indiana.
- If you have no withholding credits.
- If you have no children or other dependents.
If you have moved to Indiana within the past year, or if you are a former Indiana resident who has permanently departed within the 12 months of the previous tax year, you are considered a part-time resident.
If you have made money from an Indiana-based company while living out of state or earned income while previously living in Indiana, you will need to submit Form IT-40PNR. You can also use this form if you were a resident of Indiana for a brief time during the year and are not able to meet the criteria to file your tax return with Form IT-40 RNR. This also applies to married couples filing their tax returns jointly.
If you have been living in another state while retaining your Indiana residency and have been taxed by that state, then you can claim tax credits from Indiana.
This applies to two types of credits:
- Any local taxes you were required to pay to a town, city, county, or any other local authority.
- Taxes you paid to a different state.
If you are applying for local credits, you must complete line 1. If you are applying for state credits, then you must complete line 5.
If you, as a resident of Indiana, have been working in Ohio, Kentucky, Pennsylvania, Wisconsin, or Michigan, you don't need to file a tax return with these states. This is thanks to reciprocal agreements these states have with Indiana. This is the why Indiana will not refund taxes paid on any income earned in those five states. If, for whatever reason, your employer holds back taxes payable in another state, you need to make sure they release this income.
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