Individual Income Tax FAQs

Filing your taxes

• When is my tax return due?

  April 15 following the end of the tax year.

  If April 15 falls on a weekend or holiday, the due date for filing your tax return is the next business day.

• Who must file a tax return?

  You must file an Indiana individual income tax return if you lived in Indiana and received income or lived outside Indiana and received income from Indiana.

• Which tax return should I file?

  Indiana has several different Individual income tax returns.

  • Full-year residents: IT-40
  • Part-year or full-year nonresidents: IT-40PNR
  • Reciprocal nonresident (Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin): IT-40RNR
  • Residents 65-years-old or older (meets income eligibility requirements): SC-40

  Those with one or more wage statements—such as Forms W-2 or 1099—must include Schedule IN-W to list all wage statements. Software vendors automatically include this form.

• Where can I go for assistance to file my taxes?

  Depending on income, INfreefile allows eligible Hoosiers to file their federal and state taxes for free using simple question and answer type software.

  If you are looking for assistance in preparing your individual income taxes, there are organizations that can help. These resources are not affiliated with DOR and operate independently.

• Where do I send my completed tax returns?

  You can pay your taxes to Indiana online via INTIME.

  Returns are accepted in person during office hours at any DOR district office or the Customer Service Center located at Indiana Government Center North.

  • Do not enclose a copy of the federal tax return with the Indiana tax return.
  • Place the main page of the return on top; then follow the enclosure sequence on the upper-right corner of each form for schedules.
  • Place copies of all W-2s, 1042-S, 1099s, and other documents that contain Indiana state/county withholding last.
  • Only enclose schedules that have an entry; do not send blank schedules.
  • If you are including payment of taxes owed with the return, print your SSN and tax year on the check or money order.

  Returns must be postmarked by the U.S. Postal Service no later than the tax deadline.

• When is the earliest I can file my taxes?

  You are ready to file your taxes when you have received all of the required documents.

  Attempting to file without all required documents can delay the return process and any potential refund a customer may be eligible to receive.

• What should I do if I need more time to file my taxes? (Extension of time to file)

  If you have been granted a federal extension of time to file with the IRS, you will automatically be granted an extension of time to file with Indiana. DOR may also grant extensions for filing and paying certain income tax for those affected by natural disasters.

  If you have not filed a federal extension, you will need to file Form IT-9 before the tax deadline to receive an extension on your Indiana taxes. You can file this form electronically through INTIME. You cannot file for an extension after the tax deadline has passed.

  Taxes owed are due on the tax deadline.

  Requesting an extension of time to file only allows you to file your tax return after the tax deadline; it does not extend the deadline to pay.

  Any payment made when you file your tax return with an extension is subject to interest and penalties.

• What if I file and pay the Indiana income tax I owe after the tax deadline and I have not filed an extension?

  Interest will be charged, and any outstanding balance due after the tax deadline will be subject to a 10% late payment penalty.

  While interest is due on any amount paid after the tax deadline, penalty will be waived if both of the following conditions are met:

  • The remaining balance due is paid in full by the extension deadline
  • You paid at least 90% of the tax expected to be owed by the original tax due date
• When do I file an amended (corrected) return?

  When there are changes to your income, exemptions or credits, file an amended (corrected) return.

  This may result in tax due or a refund.

• How should I file my Indiana taxes if I only worked in Indiana for six months?

  You must file IT-40PNR if:

  • You were a part-year resident and received income while you lived in Indiana.
  • You were a legal resident of another state and had taxable income from Indiana.
  • You are a resident of one of the reciprocal states that had gambling winnings, business income, farming income, etc., in Indiana.
  • You are a full-year resident who files a joint federal income tax return with a spouse who is a part-year resident.

  Full-year residents of the reciprocal states (Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin) who received salary, wages, tips or commission income from Indiana are subject to different rules and must file Form IT-40RNR.

  If you were not an Indiana resident, but your county of principal business or employment was in Indiana on Jan. 1 of the taxable year, you must figure your county tax on the income from the county of principal business or employment.

• What do I do if I keep getting a rejection on my e-filed tax return?

  If your return has been rejected, you will need to navigate the e-filer you used and follow the instructions to correct return.

  An e-file rejection means something on your tax return does not match what DOR has in its database. DOR cannot correct a return processed online that has been rejected.

  If you have tried to resubmit the return and it continues to be rejected, you will need to print off the return and mail it to DOR.

• Am I eligible for any credits or deductions?

  Find information about tax credit and deduction eligibility.

• Can I claim a gambling loss that I filed on my federal return on my state return?

  No. Indiana does not have a deduction for gambling losses.

Paying your taxes

• How do I pay my taxes if I owe something?

  DOR recommends you pay your taxes securely via INTIME, which accepts credit, debit and electronic bank payments (ACH/e-check) payments.

  Online and software services and tax professionals may also offer payment services.

  It is your responsibility to ensure the correct payment amount arrives by the tax deadline.

  If you mail or bring a payment to a district office in person, know that only personal checks, cashier’s checks and money orders are accepted. Be sure to print your SSN and tax year on your payment.

• Does DOR have payment plan options?

  If you owe $100 or more, you can set up a payment plan with DOR after your tax return is processed, even if DOR has not sent a bill yet.

• Can I make a payment if I have not received a bill?

  Yes.

• Can I get additional time to pay due to financial hardship?

  Payment plans for income taxes owed can be established in INTIME after DOR has processed your return.

  Partial payments can also be made to reduce the amount that you will owe, as well as reduce penalties and interest. If the payment plan is not feasible, then you have the option to file a Hardship or Offer in Compromise with DOR’s Taxpayer Advocate Office.

• How do I get information about my tax bill?

  Sign up and use INTIME to learn about your tax bill.

  To sign up, you will need to have your tax identification number or Social Security number, the liability or warrant number, and one of the following: a recent payment amount, a recent return line item, or a letter ID. If you do not have the correct information, you can request a mailed letter.

• Why am I receiving a bill for penalties?

  A 10% late payment penalty is assessed if the payment is not made by the due date.

  A 2210 Penalty indicates:

  • You owed over $1,000 for the tax period, and
  • Failed to pay quarterly estimated income taxes throughout the year or the estimated payments did not cover at least 90% of the tax due.
• Why did I receive a Return Check Penalty?

  If you make a payment with a check, credit card, debit card or electronic funds transfer, and DOR is unable to obtain payment for its full amount when it is presented for payment, an additional penalty will be assessed on top of the original amount due.

  The penalty is a flat fee of $35 per returned payment for payments postmarked after Jan. 1 of the tax year.

• Where's my refund?

  You can check the status of your Indiana tax refund using INTIME. Your refund may be delayed if DOR requests additional or missing information.

  Please wait at least three to four weeks before contacting Customer Service about the status of your refund. Refunds for paper returns may take up to 12 weeks to process.

• Why did I receive a letter requesting additional information?

  This letter is sent by DOR when we need additional information to process your tax return. Commonly requested information may include forms, schedules, business expenses and/or a copy of your federal tax return. This information will be used to verify the credits and/or deductions you are claiming. The return will be held for processing, or the credit/deductions will be disallowed until the requested documentation is received.

• Why did I not receive the full amount of the refund I expected?

  Tax refunds can be diverted (offset) to pay a past-due Indiana tax liability or other outstanding debt held by another government agency or organization. DOR may not have all the information; you must contact the agency or organization responsible for the requested offset directly with questions or concerns. Common offsets include, but are not limited to:

  • DOR, for unpaid Indiana taxes
  • Unpaid child support
  • Repayment of Department of Workforce Development benefits
  • Repayment of Family Social Services Administration benefits
  • Unpaid tuition and other expenses at Indiana post-secondary educational institutions (colleges, universities)

• What is Form 1099-G?

  Unemployment compensation is taxable on both federal and state tax returns.

  If you received unemployment compensation, use the 1099-G issued by the Department of Workforce Development and include it in your tax return.

  If you did not receive unemployment benefits but received notification that a 1099-G was issued to you, you will need to report the claim to DWD.

  DOR is unable to answer questions regarding your Form 1099-G from DWD or fraudulent claims.

• Do I report my unemployment to Indiana if I am a resident of Indiana and received unemployment from another state?

  All income earned while a resident of Indiana is taxable to Indiana for state and local taxes. In this case, the unemployment would be reported to Indiana and included when filing your tax return.

  Taxpayers may still be able to deduct some portion of their unemployment income on their state tax return in accordance with Indiana’s current tax laws. Refer to the IT-40 Instruction booklet and worksheet for more information.

• If I am a resident of Indiana and received unemployment from another state, and the other state taxed my unemployment, isn’t that double taxing?

  If you are a resident of Indiana who also paid tax to another state, you may be eligible for Credit for Taxes Paid to Other States on your Indiana tax return. If you paid tax to a Reverse Credit state (Arizona, Oregon, Washington DC), the credit would be taken on the non-resident return in that other state.

• What do I do if I suspect Unemployment Fraud?

  If you received Form 1099-G for unemployment benefits and did not apply for benefits, contact the Indiana Department of Workforce Development (DWD). You can call 1-800-891-6499, Monday through Friday, 8 a.m. – 4:30 p.m. ET.

  You can also visit DWD’s website to report unemployment fraud.

Power of Attorney

• What is a Power of Attorney (Form POA-1)?

  Power of Attorney (POA) allows a third party to represent you regarding tax matters with DOR. For DOR to disclose information about your tax account, a representative must first complete the POA process.

  The easiest way to obtain POA is through INTIME, where the process can be completed within minutes. Using this method, your representative will gain access to your tax records in INTIME, may respond to notices, and communicate with DOR electronically on your behalf.

  The process of requesting POA access through INTIME starts with your practitioner or representative requesting POA access through their INTIME account. You may then approve the access request from your own INTIME account. More information on this process is available in the INTIME Guide.

  A paper Form POA-1 is still used for Power of Attorney authorization but does not allow access to client accounts in INTIME.

  Extended time is required to process a paper Form POA-1.
• Why is an ePOA needed for INTIME when my tax practitioner already has POA authority to speak on my behalf?

  Although your tax practitioner may have a POA to manage your tax accounts, an ePOA is needed to ensure the security of your INTIME account information.

  Requesting ePOA access is done through a tax practitioner’s INTIME account. You will be notified that the request has been submitted and to log in to your INTIME account to review and approve.

  Once you approve, the tax practitioner will be able to see and perform the same actions as you in INTIME.

  For more information, see the INTIME User Guide for Individual Income Tax Customers.

• Do I need to access the internet to register for INTIME to approve my tax practitioner’s ePOA request?

  If you do not have the ability to access INTIME to approve the ePOA request, an access request letter will be mailed to your legal address on file with DOR. The letter can be used to approve the ePOA and your tax practitioner’s access request to INTIME.

• My tax practitioner is requesting ePOA approval to access my INTIME account, but I haven’t used INTIME yet. How do I proceed?

  The best way to proceed is to create a logon for their INTIME account. If you don’t have the information on hand to validate the account, you may request a “Welcome Letter,” which will be mailed to you. INTIME user guides are available if additional information is needed.

• Where do I get the Power of Attorney (Form POA-1)?

  Power of Attorney Form POA-1

• How can I submit a Form POA-1?

  Mail or fax your signed Form POA-1 to:

  Indiana Department of Revenue
  P.O. Box 7230
  Indianapolis, IN 46207-7230
  Fax: 317-615-2605

  A PDF file may also be attached to an INTIME message.

• Can my certified public accountant (CPA) submit a Form POA-1 for me?

  Yes, CPAs can submit a signed Form POA-1 for their clients.

• Do I need to have a Form POA-1 notarized if a family member is my POA?

  You can designate anyone, including a family member, as your POA representative. Form POA-1 does not need to be notarized.

• Can DOR speak to my family members without a Form POA-1 on file?

  No, a Form POA-1 must be on file. DOR will speak to a family member only if they are listed as a POA representative on your Form POA-1. However, if you are married and filed a joint return, DOR can speak to either you or your spouse without a POA.

• My family member is on active duty in the military. How can they complete a Form POA-1?

  If your family member has internet access, have them approve the POA request online through INTIME.

  Form POA-1 may mailed or faxed to:

  Indiana Department of Revenue
  P.O. Box 7230
  Indianapolis, IN 46207-7230
  Fax: 317-615-2605

• Can anyone be my POA, or does it have to be an attorney or a CPA?

  You can designate anyone, including family members, CPAs or attorneys, to be your POA representative.

• If I submit my Form POA-1 to my local district office, will my POA representative be able to speak with an employee at any DOR office?

  Yes, your POA representative may speak with any DOR team member after the Form POA-1 has been processed by DOR.

• I’ve entered my representative’s company name on a Form POA-1. Can DOR speak with anyone who is employed at that firm?

  No, a company cannot be listed on a Form POA-1 as your representative. By law, DOR can accept only an individual’s name as a POA representative. A Form POA-1 without an individual listed as your designated POA representative will not be accepted.

• Can I give blanket permission for my POA representative to receive information for all my tax types and years?

  Yes, DOR will accept a Form POA-1 with the General Authorization box checked to indicate that your POA representative may access all periods and tax types with DOR. This authorization is valid for five years from the date stamp on the Form POA-1. If the General Authorization box is not checked, you can indicate the specific tax types and periods your POA representative may access.

• How much will it cost to file a Form POA-1 with DOR?

  There is no cost to you or your POA representative to file a Form POA-1 or to complete an ePOA for access to your INTIME account.

• Do I need to complete a Form POA-1 if my personal representative is listed on the individual tax return?

  If your authorized personal representative is listed on the tax return, a POA is not required to discuss that specific return with them. However, if your personal representative has additional questions outside of the tax return itself, other tax years, or other submitted forms, a POA will be required.

• When does my POA expire with DOR?

  Your POA expires five years from the date it was signed. Therefore, you must renew your POA with DOR every five years.

• Who owes Indiana Use Tax?

  Any business entity (individual, partnership, corporation, etc.) that makes purchases of tangible personal property is subject to use tax unless they have paid at least 7% sales tax on the purchase to the vendor.

  Use tax is due on property brought into Indiana for use, storage, or consumption, unless the Indiana Code (IC 6-2.5-5) contains an applicable exemption for your purchase. If you paid at least 7% sales tax at the time of purchase, you do not owe a use tax.

• What type of purchases might cause me to become liable for use tax?
  • Catalog purchases by phone or mail from out-of-state vendors
  • Internet purchases from out-of-state vendors
  • Items withdrawn from your inventory for personal use or to give away
  • Any purchase for which a statutory exemption is not available per the Indiana Code (IC 6-2.5-5)
• What about items I purchase at garage sales and auctions?

  Items sold at garage sales are generally exempted under Indiana's casual sale statute. A casual sale exemption is applicable when the seller is not in the "business" of selling merchandise and the seller has already paid an original sales or use tax on the item. (Information Bulletin #20)

  Items purchased at auctions are slightly more complex. If the auctioneer collects the 7% sales tax, you will not owe any additional use tax. If the auction takes place on the premises of the owner of the tangible personal property, the items are "casual sales," and are exempt from sales and/or use tax. However, if the merchandise to be sold is moved to a location not owned by the owner of the merchandise, the sales become subject to sales and/or use tax. All sales at auction "houses" are subject to the sales or use tax. (Information Bulletin #20)

• What if I’ve paid sales tax to another state?

  The Indiana use tax rate is 7%.

  Depending on the tax rate of another state, you may or may not owe use tax:

  • If you paid sales tax of 7% or more to the other state, you do not owe use tax to Indiana
  • If you paid sales tax of less than 7% to the other state, your Indiana use tax will be the difference between the Indiana 7% use tax and the amount you paid to the other state.

• Which Indiana income tax form do I file if I am in the military?

  You have special filing considerations if Indiana is your military home of record.

  File Form IT-40 if:

  • You are single
  • You are married and filed a separate federal income tax return
  • You are married and filed a joint federal income tax return and your spouse is also a full-year Indiana resident

  File IT-40PNR if:

  • You are married and filed a joint federal income tax return, and your spouse is either a part-year Indiana resident or a full-year Indiana nonresident. This form will help separate the income to be taxed by Indiana.

  Find more information for military service members.

• What are my rights as an Indiana taxpayer?

  All Indiana taxpayers have certain rights and responsibilities that correspond to the Indiana tax laws.

  • Quality Customer service
  • Taxpayer advocate to help customers in the preservation of their rights
  • Taxpayer education and information
  • A fair collection process
  • Appointed hearing time and representation
  • Demand notices
  • Warrants for collection of tax
  • Judgment liens against property
  • Annual Public Hearing and Department Report
• What are my responsibilities as an Indiana taxpayer?

  Your responsibilities are:

  • To file your tax returns and pay any taxes due on time
  • To notify us in writing when you have an address change
  • To know the tax laws that relate to you as an individual or a business, and comply with those laws
  • To contact us if you have any questions or concerns
• What is DOR’s delinquent tax collection process?

  Every customer has the right to a fair collection process.

  You have the right to protest a liability. If you protest a liability, DOR is required to conduct a hearing on that case. You are entitled to be represented at your hearing when your case is presented. If a liability is not paid or protested within 60 days of the first notice, we will issue a "Demand Notice" for payment before issuing a tax warrant. If we do not receive a payment, a warrant for the collection of tax will be issued. When a tax warrant is filed with your county clerk, it becomes a judgment lien (levy) against all your property within the county. DOR intends for you to have every opportunity to rectify your account balance whether it is paying it right away or protesting it.

General

• Why is there a tax lien on my vehicle title?

  You are most likely in a stage of collection for taxes.

• Do I have to figure county tax?

  Yes. County tax is based on your county of residence (or employment for non-residents) on Jan. 1 of the year you lived or worked in any Indiana county. If you were an Indiana resident on Jan. 1, you must figure your county tax based on your county of residence.

• How can I find my Federal Adjusted Gross Income (FAGI) for last year?

  DOR cannot provide the FAGI over the phone. However, there are multiple other ways customers can obtain this information:

  • You can obtain this amount from your copy of your prior year’s return. Many software programs retain a copy that you can access.
  • You can receive the FAGI quickly by obtaining a federal transcript online. By visiting irs.gov and selecting “Get Tax Record,” you may submit an online request and obtain the transcript the same day. This is often the fastest and easiest way for you to obtain what you need.
  • You can submit a request to DOR for a return transcript through INTIME. Refer to the INTIME User Guide for Individual Income Tax Customers for more information.
• How can I respond to my letter, notice or bill if it is in my spouse’s name?

  A joint view has been created for period-level letters, notices, or bills for periods where the spouses live at the same address during the filing. The “secondary” spouse will be able to view and respond to these items on their own INTIME account. Learn more in our updated INTIME Guide.

• How do I claim relief as an injured spouse/non- or partially-responsible party?

  Spouses are liable for the information on tax returns filed jointly and any taxes owed. In limited cases, a spouse may have no or partial responsibility and can request that their part of any tax refund due is not used to pay the other spouse’s Indiana tax liability or toward other liabilities where the tax refund may be diverted or offset.

  Those filing as an injured spouse should check the box on Schedule 7 of Form IT-40 and Schedule H of Form IT-40PNR. Qualifying taxpayers will be sent Schedule IN-40SA after filing to supply information supporting this claim. Any refund will be on hold until the claim is processed. This process allows for DOR to allocate refunds for these taxpayers accordingly before they are offset.

  Making a claim as an injured spouse does not guarantee DOR will not divert part of your tax refund. DOR will investigate the matter and allocate any tax refund due accordingly. This will delay processing the return. For more information, see DOR’s Non- or Partially-Responsible Spouse/Injured Spouse Information page.

• What are the filing requirements for deceased individuals?

  There are several requirements to meet if an individual died during or after Dec. 31 of the tax year but before filing their tax return.

  The executor, administrator, or the surviving spouse must file an Indiana income tax return for the individual if:

  • The deceased was under the age of 65 and had gross income of more than $1,000;
  • The deceased was age 65 or older and had gross income of more than $2,000; or

  • The deceased was a nonresident and had gross income from Indiana.

  DOR may ask for a copy of the death certificate, so please keep a copy with your records. Make sure to enter the month and day of death for the taxpayer or spouse in the appropriate box located on the back of the appropriate form or schedule. See more information.

  Indiana's inheritance tax was repealed for individuals dying after Dec. 31, 2012.

• Why have I not received my worker’s compensation exemption certificate?

  To receive the worker's compensation exemption certificate, you must meet several requirements.