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Welcome to DOR's Tax Talk Blog

Tax Talk is a weekly blog published each Wednesday by the Indiana Department of Revenue (DOR) that discusses tax tips, DOR programs, and helpful information for tax preparers. During tax season blogs are posted on both Mondays and Wednesdays. 

 

Most Recent Blog Posts

529 Plan Contributions Make Great Holiday Gifts

December 12, 2018

Tired of searching for gift ideas? DOR has a way for you to give a great gift and save money on your taxes at the same time.

Individuals who contribute to an Indiana CollegeChoice 529 Plan may be eligible for a tax credit, up to $1,000, for contributions made by December 31.

While tax deductions lower your income that is taxed, tax credits like this provide a dollar-for-dollar reduction of your income tax liability, giving you a lot of bang for your buck. 

Starting in  2018, Hoosiers can also use the Indiana CollegeChoice 529 Plan to save for K-12 tuition at in-state public and private schools. For this tax year only, Hoosiers can receive up to 10 percent, maximum $500, of their K-12 contributions as a tax credit. The maximum combined tax credit for K-12 and college contributions is $1,000.

After 2018, K-12 contributions into an eligible 529 plan will earn a 20 percent tax credit, up to $1,000. However, the maximum total credit for all contributions will remain at $1,000.

Want to spread the joy? Anyone can contribute to a 529 plan, including grandparents, other family members and friends. Contributions may be made to multiple accounts to receive the maximum tax credit. For example, if you contribute $1,000 into each of your five grandchildren’s eligible 529 college plans (for a total of $5,000) by December 31, you would be eligible to receive a $1,000 tax credit on your 2018 individual Indiana income tax return.

While there are many 529 savings plans available across the country, only contributions made to Indiana CollegeChoice 529 Savings Plans are eligible for an Indiana tax credit.

For more information on college and Indiana K-12 savings, visit the websites for the Indiana Savings Authority or College Choice Direct.

 

Closing a Business Account Just Got Easier with DOR

December 5, 2018

Did you know in the past to close a business account with DOR required documentation? Well not anymore! As of December 1, 2018, DOR has simplified the process for closing a business. 

DOR decided to simplify the process after looking at the number of inactive businesses that never officially closed their accounts. This often resulted in the business receiving a bill for the estimated tax owed based on their account when the business was in fact closed. To reduce the amount of unnecessary estimated bills being sent, DOR decided to make the process to close a business account easier, saving the state time and money. 

To close your business- tax accounts with DOR, a business owner must submit a Business Tax Closure Request, Form BC-100

Remember, closing a tax account requires a separate BC-100  for each location to be closed.

Business owners can send the completed form by fax to (317) 232-1021 or mail to:
Indiana Department of Revenue
Customer Service
P.O. Box 6197
Indianapolis, IN 46206-6197

DO NOT mail AND fax this form. Duplication of information may slow down processing.

If you have any additional questions about closing a business- tax account, you may call 317-233-4015, Monday through Friday, 8 a.m. - 4:30 p.m. EST.