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Military Service Members

The Indiana Department of Revenue (DOR) provides more detailed information for military service members regarding Indiana state taxes for these topics:

Combat Zone Issues

Filing due dates and extensions of time to file for military service members serving in a combat zone

  • Military servicemembers serving in a presidentially-declared combat zone have an automatic extension of time to file of 180 days after they leave the combat zone.
  • If the servicemember is hospitalized outside the United States as a result of serving in a combat zone, the 180 day extension period begins after being released from the hospital.
  • The spouse of a military servicemember serving in a combat zone must file the Indiana return using the same filing status as was used when they filed their federal return:
    • A married service member who files jointly for federal tax purposes, must file a joint Indiana return.
    • If married and filing separately for federal tax purposes, each spouse must file a separate Indiana return.
    • When filing the return, write "Combat Zone" across the top of the form (above the service members Social Security number).

Note: An extension of time to file does not extend the deadline for paying any tax due. Interest is due on any tax that remains unpaid during the extension period. More information is available.

Important: If you were an Indiana resident at the time you enlisted in the military service, Indiana will be your home of record; you are considered to be a full-year Indiana resident for state income tax purposes during your enlistment regardless of where you are stationed, and all of your income will be taxed by Indiana.

Choosing Your Income Tax Form

You have special filing considerations if Indiana is your military home of record. Read the following to see which set of circumstances fits you.

  • If you are single, file Form IT-40.
  • If you are married and:
    1. Filed a separate federal income tax return, file a separate Indiana return on Form IT-40;
    2. Filed a joint federal income tax return, and your spouse is also a full-year Indiana resident, file Form IT-40; or
    3. Filed a joint federal income tax return, and your spouse is either a part or a full-year Indiana nonresident, file Form IT-40PNR. This form will help you to separate the income to be taxed by Indiana.

Reporting a Spouse's Income

If your spouse maintains their Indiana residency during your enlistment, all of their income will be taxed by Indiana, regardless of where you are stationed. Select the example that applies to you.

Owing Indiana county tax

Indiana military personnel have special county tax filing considerations. See which of the following examples applies to you.

Example 5: You are single and you enlisted in the military service during the tax year. You were an Elkhart County resident on January 1 of that year. You will file Form IT-40 as a full-year resident and will show Elkhart as the county where you lived on January 1. You will owe Elkhart county tax at the resident rate.

Example 6: You are single and you were stationed outside Indiana before the first of the year. You will not owe an Indiana county tax. Enter "00" (indicating out-of-state) as the 2-digit county code number in the county information boxes at the top of your tax return.

Note: Examples 7 through 9 apply if you are married and filing a joint Indiana income tax return.

Example 7: You were a Daviess County resident at the time you enlisted. Your spouse maintains his/her Indiana residency. Daviess County will be your county of residence while you are stationed in Indiana. You will owe Daviess County tax at the resident rate.

Example 8: You were a Marion County resident at the time you enlisted. Your spouse maintains his/her Indiana residency. You and your family have been stationed outside Indiana for the last few years. You and your spouse's county of residence as of January 1 will be considered to be "out-of-state". You will owe no county tax. Enter "00" (indicating out-of-state) as the 2-digit county code number in the county information boxes at the top of your tax return.

Example 9: You were an Indiana resident at the time you enlisted. Your spouse maintains his/her Indiana residency. If you are stationed outside Indiana, but your spouse maintains a household in Indiana, your county of residence as of January 1 will be considered to be the same as your spouse's. Therefore, you will owe tax to that county on your income.

Note: If you have a military personnel question that is not answered here, please contact us via phone.

Collection of Outstanding Debts

The federal and Indiana Servicemembers Civil Relief Acts (SCRA) allow the Department to assist active duty military members with the penalty, interest and, if materially affected, the collection activity for outstanding tax debts.