Who must file a tax return?
You must file an Indiana individual income tax return if:
- You lived in Indiana and received income greater than certain exemptions, or
- You lived outside Indiana and received income from Indiana.
First, figure your Indiana exemptions:
- Allow $1,000 for each exemption claimed on your federal tax return;
- $1,000 for each individual age 65 or older;
- $1,000 for each individual legally blind.
If you did not have to file a federal income tax return, you should complete a "sample" federal income tax return to see how many exemptions you are eligible to claim.
Second, add all the exemptions you are eligible for, and compare that amount to your taxable income.
Example: Let's say you are eligible for a total of $2,000 in exemptions. If your taxable income is $2,000 or less, then you're not required to file a tax return with Indiana. If your taxable income is more than $2,000, then you must file a tax return with Indiana.
Important: If your income is less than your total exemptions and you have Indiana credits (like state and county withholding on your W-2's, or you're eligible for the Indiana earned income credit), then you'll want to file a tax return to get a refund. However, you're not required to file under these circumstances.
Check out the IT-40 instruction booklet for more information.
Generally, if you were a resident of another state (or country) at any time during the year and had income from Indiana (except certain interest, dividends or pension income), you must file a tax return with Indiana.