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The current local county tax rate is printed on the back of Schedule CT-40, Schedule CT-40EZ, and Schedule CT-40PNR. Additionally, tax rates can be determined by:
Tax returns filed using the wrong rates will be adjusted. This may result in a reduced refund or an increase in the amount owed.
OOS municipal obligation interest add-back; 137 is the 3-digit code (must be a positive amount).
Any interest earned from a direct obligation of the State of Indiana or a political subdivision of the State of Indiana is not taxable for Indiana income tax purposes.
Interest earned from a direct obligation of a state or political subdivision other than Indiana is subject to the adjusted gross income tax if the obligation is acquired after Dec. 31, 2011. An obligation will be considered to be acquired on the trade date. Interest earned from obligations held or acquired prior to Dec. 31, 2011, is not subject to Indiana income tax.
Interest earned from obligations of Puerto Rico, Guam, Virgin Islands, American Samoa, or Northern Mariana is not included in federal gross income and is exempt under federal law. There is no add-back for interest earned on these obligations.
Example. Martha, an Indiana resident, owns bonds issued by the city of Washington, Indiana. The $247 interest income received from these bonds is exempt from tax by Indiana. She also owns bonds issued by the city of San Antonio, Texas. She received $421 interest from these bonds, which were purchased after Dec. 31, 2011. She will have to add back the $421 received from the OOS municipal bonds.
The Indiana General Assembly passed Governor Daniels’ proposed legislation providing an Automatic Taxpayer Refund credit for eligible Indiana taxpayers when the state budget surplus exceeds the amount needed to protect against a downturn in the economy.
Most taxpayers are eligible for the credit, but there are three qualifications that must be met. An eligible taxpayer must have a
*A modified state tax liability is the:
The remaining balance (the modified state tax liability) must be $1 or more.
The refundable credit that has been authorized for 2012 is $111 per eligible taxpayer ($222 for an eligible married couple filing a joint return).
The department has created a Student Loan Interest Add-Back Worksheet for IT-40 filers and a Modified Student Loan Interest Deduction Worksheet for IT-40 PNR filers. These worksheets are located within the IT-40 and IT-40PNR instruction booklets: