Although most of the expenses and deductions used to figure your federal taxes are allowed on your Indiana tax return, some need to be “added back” to calculate the correct income used to figure Indiana income tax due.
For example, interest earned from a direct obligation of a state or political subdivision other than Indiana is taxable to Indiana if the obligation was acquired after Dec. 31, 2011. An individual who received $421 in interest from bonds issued by another state and purchased after Dec. 31, 2011, will have to “add back” $421 to the amount of income used to calculate the tax obligation for Indiana.
You must complete your federal tax return, Form 1040/1040-SR, through the federal adjusted gross income (AGI) line before beginning to figure your Indiana Individual income tax return.
- Bonus depreciation add-back
- Discharge of Debt Reduction of Net Operating Losses
- Domestic production activities add-back
- Employer student loan payment add-back
- Meal expenses add-back
- Modifications for excess business losses
- Modifications from excess inclusion income
- Net operating loss add-back
- Nonprofit separate trade or business modification
- OOS municipal obligation interest add-back
- Qualified preferred stock
- Section 179 expense add-back
- Specified research or experimental expenditures add-back
- Student loan discharge add-back
- Tax add-back