reglab/statecodes huggingface dataset:
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-67 - Subchapter S corporation reports; taxation of shareholders

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-2-2.8
Sec. 67.
Subchapter S Corporations Filing Requirements. Qualified
				  Subchapter S corporations will file an annual return, Form It-20S on or before
				  the fifteenth day of the fourth month following the close of the corporation's
				  tax year. The first annual return of the corporation must be accompanied by
				  copies of Federal Form 2553, Election by Small Business Corporation, and by
				  Federal Form 1120S covering the corporation's first-year business activities.
				  Corporations must designate their Federal business activity code numbers in the
				  appropriate place on the return, as well as designating their Federal
				  identification numbers. Annual returns must be filed by any Subchapter S
				  corporation incorporated in Indiana or having income from Indiana
				  sources.
Indiana resident shareholders of a Subchapter S corporation
				  that conducts business in more than one state are subject to the adjusted gross
				  income tax on their entire share of the corporation's income. They may,
				  however, be allowed a credit for any taxes paid to another state on this
				  income. Such credit will be pursuant to the provisions of Regulation
				  6-3-3-3(a)(010)
[ 45 IAC 3.1-1-74 ]
.
Nonresident shareholders of a Subchapter S corporation
				  conducting business both within and without Indiana must divide their income by
				  using the corporate division of income provisions contained in Regulation
				  6-3-2-2(b)(010)
[ 45 IAC 3.1-1-37 ]
et seq. In particular,
				  these shareholders must apportion their business income on the three-factor
				  formula outlined in Regulation 6-3-2-2(b)(030)
[ 45 IAC 3.1-1-39
				  ]
.
Any Subchapter S corporation which is a member of a
				  partnership, joint venture, or pool will cause such partnership, joint venture,
				  or pool to become subject to gross and adjusted gross income tax. See
				  Regulation 6-3-7-1(b)(010)
[ 45 IAC 3.1-1-151 ]
. In that case,
				  the partnership, joint venture, or pool will file annual return IT-65T and pay
				  the tax shown to be due thereon. Profits from such entities are deductible by
				  the corporation on its annual return.
Subchapter S corporations are required to make information
				  returns as described in Regulation 6-3-4-9(010)
[ 45 IAC 3.1-1-104
				  ]
.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-68 - Unrelated business income of exempt organizations

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-2-3.1
Sec. 68.
Unrelated Business Income of Exempt Organizations. Under IC
				  6-3-2-3.1, exempt organizations are subject to adjusted gross income tax and
				  supplemental net income tax on income derived from an unrelated trade or
				  business as defined in Internal Revenue Code §513. This section does not
				  apply to the United States and its agencies and instrumentalities, nor to the
				  State of Indiana, a state agency as defined in IC 34-4-16.5-2
[IC 34-4
				  was repealed by P.L. 1-1998, SECTION 221, effective July 1, 1998.]
,
				  nor a political subdivision of the state as defined in IC
				  34-4-16.5-2
[IC 34-4 was repealed by P.L. 1-1998, SECTION 221, effective
				  July 1, 1998.]
, all of which are exempt from adjusted gross income tax
				  on all income. This section does apply to all other exempt organizations such
				  as churches, fraternal organizations and professional societies.
An "unrelated trade or business" is one the conduct of which
				  is not substantially related (aside from the needs of income or the use of the
				  profits) to the performance by the exempt organization of the function
				  constituting the basis for which it was granted exemption. However, under
				  Internal Revenue Code § 513 the term does not include income from a trade
				  or business:
(1) in which
				substantially all the work is done for the organization without compensation;
				or
(2) which is carried on
				primarily for the convenience of its members, employees, etc.; or
(3) which is the selling of merchandise
				substantially all of which has been received by the organization as gifts or
				contributions. The exempt organization will compute its taxable unrelated
				business income in the same manner as any other taxpayer having business
				income. However, its business deductions are limited to those directly
				connected with the carrying on of the unrelated trade or business. Taxpayers
				should consult the Internal Revenue Code §§511-515 and the
				regulations established thereunder for a more detailed explanation of the
				Federal income tax on unrelated business income.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-69 - Federal civil service annuity income

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-2-3.7
Sec. 69.
Federal Civil Service Annuity Income. See Regulation
				  6-3-1-3.5(a)(050)(12)
[Subsection (12) of 45 IAC 3.1-1-5
				  ]
.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-70 - Military pay

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-2-4
Sec. 70.
Military Pay. See Regulation 6-3-1-3.5(a)(050)(10)
[Subsection (10) of 45 IAC 3.1-1-5 ]
.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-71 - Credits and adjustments for taxes withheld

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-1-3.5; IC 6-3-3-1
Sec. 71.
Individual Withholding Credits. To claim credit for taxes
				  withheld under this Act, an individual taxpayer must attach a copy of the wage
				  and tax statement, Form W-2, to the Indiana Individual Income Tax return. No
				  credit may be claimed for tax withheld to any other state or political
				  subdivision of any other state with the exception of local taxes paid against
				  County Adjusted Gross Income Tax. Amounts withheld for local income taxes under
				  provisions of IC 6-3-1-3.5(a)(5) may be deducted as an adjustment (but not as a
				  credit) to the extent allowed.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-74 - Credit for other state income taxes

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-3-3
Sec. 74.
Credit for Taxes Paid To Other States. An Indiana resident
				  must report income from all sources, including out-of-state income, in
				  calculating Indiana adjusted gross income tax. If a resident is required and
				  does pay an income tax to any other state (depending upon which state),
				  possession or foreign country on income derived therefrom, he may, upon
				  production of satisfactory evidence of such payment of tax, claim a credit
				  against his Indiana Adjusted Gross Income Tax.
The credit is the lesser of:
(a) The amount of income tax actually paid to
				the other state on income from that state; or,
(b) An amount equal to two percent (2%) of
				the income from the other state which is taxed by Indiana; or
(c) The amount of state tax due to Indiana.
Credit is not allowed for city income or occupational taxes
				  paid in other states or state income taxes paid in states allowing Indiana
				  residents a nonresident credit.
Satisfactory evidence is as follows:
The credit taken must be supported by a separate calculation
				  of the credit along with a copy of the tax return filed with the other state,
				  certified as true, and/or having been received by the proper taxing authority
				  of such state. Withholding statements or other evidence of tax payments without
				  a certified copy of an annual tax return will not be acceptable.
Income from another state is that part of Federal gross
				  income, minus all attributable Internal Revenue Code section 62 deductions,
				  derived from sources without Indiana that is taxable in a particular state or
				  country and is also taxable under this Act.
EXAMPLE:
Assuming the following facts:
Income from Indiana ...........
$ 6,000.00
Income from other state .........
4,000.00
Total Indiana exemptions ........
3,000.00
Tax liability to other state ........
100.00
Calculate Indiana tax and credits as fo
llows:
Total income ..................
$10,000.00
Less: Exemptions ..............
3,000.00
Taxable Income ............
7,000.00
Indiana tax rate ................
.02
Indiana tax ...................
140.00
Credit for tax paid to other state:
Income from other state .........
$ 4,000.00
Indiana rate ...................
.02
*Tax Credit ...................
$ 80.00
Balance of tax due Indiana .......
$ 60.00
*[This amount cannot be larger than tax actually paid to
				  other state.]
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-75 - Nonresident credit from other states

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-3-3
Sec. 75.
Credit Agreement States. Credit for taxes paid other states
				  will not be allowed for taxes paid to states which allow Indiana residents a
				  nonresident credit.
Credit should instead be obtained from the state imposing the
				  tax upon Indiana residents. These states include:
Arizona Maryland West Virginia
California New Mexico Washington D.C.
All income received from these states is reported in the same
				  manner as if it were received from Indiana. No credit may be taken on the
				  Indiana tax return for any taxes withheld or otherwise paid to the other state.
				  Instead, after filing the Indiana tax return, the taxpayer should file a
				  nonresident tax return with the other state, taking credit for the Indiana tax.
				  This nonresident return must be filed in accordance with the instructions
				  received from the other state.
EXAMPLE: Taxpayer is Full-Year Indiana
Resident
Income from Indiana ..........
$6,000.00
Income from Arizona ..........
4,000.00
Total Income Exemptions .......
3,000.00
Total liability to Arizona .......
120.00
Calculate Indiana tax and credits as f
ollows:
Total income .................
$10,000.00
Less: Exemptions .............
3,000.00
Taxable Income ............
7,000.00
Indiana tax rate ...............
.02
Indiana tax ..................
140.00
Credit for tax paid to Arizona . . . .
NONE
Take credit on nonresident return filed with Arizona for tax
				  paid to Indiana based on Arizona income.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-76 - Reciprocity

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-3-3; IC 6-3-5-1
Sec. 76.
Reciprocal Agreements States. Residents who have income
				  consisting of salaries, wages, and commissions from states with which Indiana
				  has a reciprocal tax agreement must report all such income as if it were from
				  Indiana. These states include:
Illinois Michigan Pennsylvania
Kentucky Ohio Wisconsin
Credit cannot be taken for any taxes withheld by or paid to
				  any of these states in connection with salaries, wages, or commissions received
				  from such states. If tax has been withheld by any of these states, a claim for
				  refund should be filed with the state which withheld the taxes.
EXAMPLE: Taxpayer is Full-Year Indiana
Income from Indiana ............ $6,000.00
Income from Illinois (wages) .....
. 4,000.00
Total Income Exemptions ........
. 3,000.00
Total liability to Illinois .........
. -0-
Calculate Indiana tax and credits as f
ollows:
Total income ................... $10,000.00
Less: Exemptions ..............
.
3,000.00
Taxable Income .............
7,000.00
Indiana tax rate ................
.
.02
Indiana tax ...................
. 140.00
Credit for tax paid to Illinois:
NONE
No credit is allowed taxpayer since Indiana and Illinois have
				  a reciprocal agreement. Taxpayer must file with Illinois to recover any
				  withholding to Illinois.
For income other than salaries, wages and commissions, a
				  credit will be allowed under the procedures for claiming credit for taxes paid
				  to other states as outlined in Regulation 6-3-3-3(a)(010)
[ 45 IAC
				  3.1-1-74 ]
.
Likewise, a resident of another reciprocal agreement state
				  who works in Indiana and has Indiana withholding tax deducted from his wages,
				  salaries or commissions may claim a refund of the amount so withheld. To claim
				  a refund, an individual must file an Indiana Nonresident tax return indicating
				  residency in a reciprocal state and attaching a wage and tax statement (Form
				  W-2) showing that Indiana taxes were withheld.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-77 - Nonresident reverse credit reciprocity

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-3-3; IC 6-3-5-1
Sec. 77.
Reverse Credit for Nonresidents. A credit is allowed against
				  adjusted gross income tax imposed upon nonresidents who reside in states which
				  grant similar credits to Indiana residents who become subject to tax under the
				  laws of those states.
The Indiana credit (reverse credit) is the amount of income
				  tax actually paid to the taxpayer's resident state but only on income derived
				  from Indiana sources, or two percent (2%) of such income, whichever is less.
				  The list of those states which grant a similar credit and the method for
				  computing the allowable amount of credit are outlined under Regulation
				  6-3-3-3(a)(020)
[ 45 IAC 3.1-1-75 ]
.
In order to claim this credit, the taxpayer must file an
				  Indiana Part-Year or Nonresident Tax Return along with a certified copy of the
				  return filed with his resident state, reporting income which is subject to tax
				  under this Act and under the laws of taxation of the other
				  state.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-78 - Credit for the elderly

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-3-9
Sec. 78.
Credit for the Elderly. A resident individual, and his spouse
				  in the case of a joint return, is allowed a credit for the elderly on his
				  Indiana return provided he qualifies for the credit under Section 37 of the
				  Internal Revenue Code. The allowable credit is equal to the lesser of:
(A) Two-fifteenths (2/15) of tentative credit
				for the elderly on Federal schedules R and RP; or,
(B) *The remainder of:
(1) total taxes imposed for the taxable year
				less
(2) any allowable college
				credit or credit for taxes paid to other states.
*[The sum of college credit, credit for taxes paid to other
				  states, and credit for the elderly may be equal to but cannot exceed the amount
				  of state income tax due to Indiana.]
EXAMPLE:
Indiana Adjusted Gross Income .........
$10,000.00
Tax Liability before Credits ............
200.00
College credit .......................
25.00
Credit for taxes paid to other states ......
125.00
Subtotal ...........................
$ 50.00
Tentative Federal Credit ...............
$ 420.00
2/15 of Federal Credit ................
$ 56.00
Indiana Credit for the Elderly ........... (lesser of
							 $50.00 and $56.00)
$ 50.00
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-86 - Credit for neighborhood assistance contributions

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3.1-9
Sec. 86.
Neighborhood Assistance Credit. Credit will be allowed to
				  individuals and corporations who make contributions to individuals, groups, or
				  neighborhood organizations in "economically disadvantaged areas" as defined by
				  the Indiana Department of Commerce in Regulation 104-1(K) of the Neighborhood
				  Assistance Credit Program Regulations.
Contributions may consist of cash or goods, job training,
				  education, community services, counseling and advice, crime prevention, housing
				  facilities, emergency assistance, medical care or recreational facilities.
				  Regulation 105-1 of the Neighborhood Assistance Credit Program Regulations
				  issued by the Indiana Department of Commerce stipulates that contributions
				  other than those of cash or goods must be "conducted on a not-for-profit basis
				  only by not-for-profit organizations."
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-87 - Limitation on credit for neighborhood assistance

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3.1-9
Sec. 87.
Limitation of Neighborhood Assistance Credit. The individual
				  or corporation who makes the contribution in the approved program may take a
				  credit of fifty percent (50%) of the amount invested for the taxable year. If
				  the contribution is of a non-monetary nature, the allowable credit will be 50%
				  of the fair market value at the time of the contribution. In no case, however,
				  may the credit exceed $25,000.00.
EXAMPLE: F.U.G. Corporation made an $80,000.00 qualified
				  contribution during the taxable year to the G.U.F. Neighborhood Organization,
				  which is a tax exempt organization for Federal and State tax purposes. The
				  allowable Neighborhood Assistance Credit for F.U.G. Corporation is determined
				  as follows:
Amount contributed
$80,000.00
50% of contribution
40,000.00
Allowable credit
25,000.00*
*[The allowable credit is the lesser of $25,000.00 or 50% of
				  the contribution.]
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-88 - Claim for neighborhood assistance credit

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3.1-9
Sec. 88.
Procedure for Claiming Neighborhood Assistance Credit. Any
				  business, firm, or individual that desires to claim the Neighborhood Assistance
				  Credit must first apply to the Indiana Department of Commerce, requesting
				  approval of the program. Such application should set forth the program to be
				  conducted, the disadvantaged area(s) selected, the amount to be invested, and
				  the plans for implementing the program.
After receiving approval of the program the applicant must
				  then file Form NC-10, Neighborhood Assistance Credit Application, with the
				  Indiana Department of Revenue. Form NC-10 is used to determine the tentative
				  credit amount to be claimed, and must contain the Certificate of Approval from
				  the Department of Commerce.
The Department of Revenue will then make a determination on
				  the credit application and return to the taxpayer Form NC-20, Notice of
				  Department Decision on Neighborhood Assistance Credit Application, which will
				  set forth the approved credit amount, if any, to be claimed by the taxpayer. If
				  the application is disapproved, a reason for the disapproval will be on Form
				  NC-20.
On approved applications, Form NC-30, Statement of Payment
				  for Neighborhood Assistance Credit, must be filed with the Department of
				  Revenue within thirty (30) days after the taxpayer's receipt of Form NC-20.
				  This form must be accompanied by the taxpayer's proof of payment substantiating
				  that payment has been made on an approved program.
A final statement, Form NC-40, Tax Return Attachment to
				  Support Neighborhood Assistance Credit Claimed, must then be attached to the
				  Indiana Income Tax Return filed by the taxpayer, in order to provide a
				  reference to the claimant's file.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-89 - Limitation on total neighborhood assistance credits granted by state

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3.1-9
Sec. 89.
Maximum Amount of Neighborhood Assistance Credit Allowable.
				  The total amount of Neighborhood Assistance Credit in any State fiscal year
				  (July 1-June 30) may not exceed one million dollars. When the total credits
				  approved equal one million dollars, no applications thereafter will be
				  approved. Due to this limitation, applications for the credit will be
				  considered in the chronological order in which they are
				  filed.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-94 - Notice of change in federal return or liability

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-6
Sec. 94.
Notice of Modification. All taxpayers, except resident
				  individuals, are required to file a notice with the Department within 120 days
				  after a modification of a Federal income tax return or a modification of
				  Federal income tax liability explaining the modification. For individual
				  taxpayers, Form IT-40X must be used for this purpose. Taxpayers other than
				  individuals should use the proper annual income tax return, and should mark it
				  "amended."
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-99 - Withholding for church and clergy

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4
Sec. 99.
Withholding Instructions for Church and Clergy. Ministers are
				  not subject to the withholding tax but may allow their tax to be withheld on a
				  voluntary basis. Those ministers whose Indiana adjusted gross income tax
				  liability is $100.00 in excess of any taxes withheld must file a Declaration of
				  Estimated Tax on Form IT-40ES by April 15.
Every withholding agent who employs any persons in the
				  performance of personal service is subject to the same rules and regulations
				  contained in the Internal Revenue Code. Even though a minister may or may not
				  choose to have the tax withheld on his own salary, others employed by the
				  church in the performance of a personal service must pay withholding tax and
				  the church would act as the withholding agent.
Liability of Withholding Agent:
(1) Each church is liable for the tax which
				is required to be withheld.
(2)
				Each church is required to keep correct records of each person's income and tax
				withheld.
(3) At the end of every
				calendar year, each church is required to give each person a statement of his
				income and tax withheld.
(4) Each
				church is required to make quarterly returns on forms prescribed by the
				Department, such forms to be mailed, together with remittance of the tax to the
				Department of Revenue.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-101 - Annual reconciliation of employers' withholding tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4
Sec. 101.
Annual Reconciliation of Employers Withholding Tax, Form
				  WH-3. Each withholding agent shall send or deliver the state copy of each
				  withholding tax statement prepared by him, to the Department not later than the
				  last day of February, immediately following the end of the calendar year. They
				  shall be attached to a report showing the amount of Indiana Adjusted Gross
				  Income Tax, if any, withheld and paid to the Department for the calendar year
				  as indicated by the monthly or quarterly returns and a reconciliation with the
				  total amount of tax withheld during this calendar year as reflected by the
				  withholding statement. The County Adjusted Gross Income Tax shown on Form WH-3
				  should be indicated in the same manner as on Form WH-1, with no breakdown by
				  county of individual tax withheld. Only on Form W-2 will the county tax be
				  indicated as previously described. All reports and returns shall be on a
				  calendar year basis, even though the withholding agent is on a fiscal year
				  reporting basis.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-102 - Changes in form WH-4

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4
Sec. 102.
Refiling of State Form WH-4. The Employee's Withholding
				  Exemption and County Residence Certificate (Form WH-4) must be refiled with the
				  employer to show any change in residence or number of exemptions.
Change of Residence
All employees who change their county of residence or their
				  county of principal work activity are required to file a new state Form WH-4 by
				  January 1 of the following year.
Change in Exemptions
You may file a new WH-4 at any time if the number of your
				  exemptions increase. You must file a new WH-4 within 10 days if the number of
				  exemptions previously claimed by you decreases for any of the following
				  reasons:
(a) Your wife (or husband)
				for whom you have been claiming an exemption is divorced or legally separated,
				or claims her (or his) own exemption on a separate certificate.
(b) The support of a dependent for whom you
				claim an exemption is taken over by someone else, so that you no longer expect
				to furnish more than half the support for the year.
(c) You find that a dependent for whom you
				claim an exemption will receive $750.00 or more of income of his own during the
				year.
Other decreases in exemptions such as the death of a spouse
				  or a dependent, do not affect your withholding until the next year, but require
				  the filing of a new WH-4 by December 1 of the year in which they
				  occur.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-103 - Refund or credit for excess withholding

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4
Sec. 103.
Refunds of Excess Withholding and Income Tax Credits. If the
				  amount of withholding exceeds an employee's tax as imposed by these regulations
[45 IAC 3.1]
, the Indiana Department of Revenue will refund
				  the amount of excess withholding deduction; however, such excess or part
				  thereof may be applied against any outstanding claim or liability which the
				  employee owes the Department. Neither will a refund of excess withholding be
				  made to an employee who fails to file his Indiana Individual Income Tax Return
				  within two (2) years from its initial due date, nor will any tax refund be made
				  for an amount less than one dollar ($1.00).
An excess withholding deduction in no way relieves any
				  employee from the obligation of filing an Indiana Individual Income Tax Return
				  by the fifteenth day of the fourth month following the close of the
				  individual's taxable year. In the case of withholding deductions not exceeding
				  or not equaling the amount of tax due, the unpaid tax must be paid on the due
				  date of the return.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-105 - Annual return of partnership or trust fund

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-10; IC 6-3-4-11
Sec. 105.
(a) A
				partnership must file an annual return, IT-65, with the department, disclosing
				each partner's distributive share of partnership income, on or before the
				fifteenth day of the fourth month following the close of the partnership's
				accounting year. Any partnership doing business in Indiana or deriving gross
				income from sources within Indiana is required to file the return.
(b) As used in this section, "partner's
				distributive share" means the amount determined under Section 704 of the
				Internal Revenue Code and its prescribed regulations before any modifications
				required by Indiana tax statutes.
(c) A Form IT-65 must be filed with Indiana
				by a bank with common trust funds filing a Form 1065 for federal income tax
				purposes. When reporting for Indiana purposes, a bank with common trust funds
				must comply with the provisions of Regulation 1.6032-1 of the Internal Revenue
				Code.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-106 - Partner's distributive share

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-1-3.5; IC 6-3-2-2; IC 6-3-4-11
Sec. 106.
(a) A
				partnership is not subject to the adjusted gross income tax. The partners will
				include their share of partnership income whether distributed or undistributed
				on their separate or individual returns.
(b) An individual will report as follows:
(1) The distributive share of a resident
				partner will be reported in total no matter where the partnership's business is
				located or in which states it does business.
(2) The distributive share of a nonresident
				partner will be reported after apportionment to determine the partnership
				income derived from sources within Indiana. This determination will be
				accomplished by use of the apportionment formula described in IC
				6-3-2-2(b).
(3) A resident
				partner's distributive share of income will be adjusted by the partner's
				proportionate share of the partnership's income that is exempt from taxation
				under the Constitution and statutes of the United States and by the partner's
				proportionate share of the partnership's deductions allowed or allowable under
				Section 62 of the Internal Revenue Code for taxes based on or measured by
				income and levied at the state level by any state of the United States or for
				taxes on property levied by any subdivision of any state of the United
				States.
(4) A nonresident partner's
				distributive share of income will be adjusted by the partner's proportionate
				share of the partnership's income that is exempt from taxation under the
				Constitution and statutes of the United States and by the partner's
				proportionate share of the partnership's deductions allowed or allowable under
				Section 62 of the Internal Revenue Code for taxes based on or measured by
				income levied at the state level by any state of the United States or for taxes
				on property levied by any subdivision of any state of the United States
				determined by use of the apportionment formula described in IC
				6-3-2-2(b).
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-107 - Partnership withholding requirements

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-2-2; IC 6-3-4-12; IC 6-3.5
Sec. 107.
(a) A
				partnership is required to withhold income taxes at the rates provided for
				under IC 6-2.1, IC 6-3, and IC 6-3.5 on any nonresident partner's distributive
				share of partnership income at the time the income is paid or credited to such
				partner as follows:
(1) For an individual
				partner, the adjusted gross income tax withheld shall be based on Indiana
				source income only, as determined by use of the apportionment formula described
				in IC 6-3-2-2(b), if applicable. This withholding requirement does not apply to
				withdrawals from the partner's drawing accounts, but applies to distributions
				to their accounts in the form of credits or payments based on anticipated
				profits or actual current profits.
(2) For a partner other than an individual
				partner, the income tax withheld may be calculated using any reasonable method
				designed to reflect the ultimate tax liability due Indiana because of the
				partnership's activities. As used in this section, "nonresident corporate
				partner" does not include a foreign corporation qualified to do business in
				Indiana.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-108 - Partnership withholding returns

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-8.1; IC 6-3-4-12
Sec. 108.
Partnership Withholding Returns. Partnerships required to
				  withhold adjusted gross income tax under IC 6-3-4-12 shall make returns (Form
				  WH-1) with each payment of tax to the Department, disclosing thereon the total
				  amounts paid or credited to nonresident partners, the tax withheld therefrom,
				  and such other information as the Department may require. The partnership must
				  also file an annual withholding return, Form WH-3 (including a copy of the
				  WH-18 furnished to each nonresident) within thirty (30) days of the close of
				  the calendar year. The partnership must furnish Form WH-18 to each nonresident
				  partner not later than thirty (30) days from the close of the calendar year as
				  proof that the tax upon his share of the partnership income has been
				  withheld.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-109 - Withholding requirements for subchapter S corporations

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-8.1; IC 6-3-4-13
Sec. 109.
Subchapter S Corporations-Withholding Requirements. Small
				  business corporations electing Subchapter S status under Internal Revenue Code
				  section 1372 are required to withhold adjusted gross income tax and county
				  adjusted gross income tax on any nonresident shareholder's share of taxable
				  income of the corporation, whether distributed or undistributed, and pay such
				  amounts to the Department in the manner described in Regulation 6-3-4-12(010)
[ 45 IAC 3.1-1-107 ]
and (020)
[ 45 IAC 3.1-1-108
				  ]
. Such corporations shall make monthly (or quarterly) and annual
				  returns as provided in Regulation 6-3-4-12(020)
[ 45 IAC 3.1-1-108 ]
and furnish a copy of form WH-18 to each nonresident shareholder as
				  provided in that regulation.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-110 - Consolidated returns of affiliated groups

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-14
Sec. 110.
Consolidated Returns. An affiliated group as defined in IC
				  6-3-4-14(b) may file consolidated returns for Adjusted Gross Income Tax and
				  Supplemental Net Income Tax purposes if the members of the affiliated group
				  consent to follow the provision of IC 6-3-4-14 and the regulations established
				  thereunder, including Federal regulations promulgated pursuant to Internal
				  Revenue Code section 1502 which are incorporated by reference in IC 6-3-4-14.
				  The inclusion of a member of an affiliated group in the consolidated return is
				  deemed to be its consent to the consolidated filing. Once an election is made
				  to file consolidated, a taxpayer must obtain written permission from the
				  Department to change from this method of reporting.
Taxpayers filing consolidated returns should notify the
				  Department of their election to so file by attaching to their first
				  consolidated return a statement indicating which corporations are joining in
				  the return. In addition, a worksheet must accompany all consolidated returns
				  showing the consolidated income of the affiliates.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-111 - Membership in affiliated groups; bank holding companies

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-2-2; IC 6-3-4-14
Sec. 111.
Affiliated Group. The Adjusted Gross Income Tax Act adopts
				  the definition of "affiliated group" contained in Internal Revenue Code section
				  1504, except that no member of the affiliated group may be included in the
				  Indiana return unless it has adjusted gross income derived from sources within
				  the state, as that phrase is defined in IC 6-3-2-2. For purposes of this
				  subsection, "Adjusted Gross Income derived from sources within the state" means
				  either income or losses derived from activities within the state.
Domestic International Sales Corporations (DISC'S) which are
				  prohibited under the Internal Revenue Code from filing consolidated returns may
				  not be included in the affiliated group for Indiana adjusted gross income tax
				  purposes.
If any bank is a member of an affiliated group for Federal
				  income tax purposes, it cannot be included as an affiliated member for Indiana
				  adjusted gross income tax purposes, since the banking entity is not subject to
				  the adjusted gross income tax. Any gross income tax liability of a bank must be
				  added separately after the composite tax of the affiliated group has been
				  computed. For supplemental net income tax purposes, the members of an
				  affiliated group, including the banking entity, may compute the supplemental
				  net income tax on a consolidated basis. Since banks are not included in the
				  consolidation under the Adjusted Gross Income Tax Act, a separate schedule must
				  accompany the consolidated return in order to compute the adjusted gross income
				  of the affiliated group and subsequently the supplemental net income tax
				  liability.
In the case of a bank holding company, the holding company
				  may be allowed a special deduction for dividends received from its banking
				  entity for Indiana adjusted gross income tax purposes in accordance with
				  section 243(a)(1) of the Internal Revenue Code. The 100% dividend exclusion for
				  those holding companies filing a consolidated return does not apply since, for
				  Indiana adjusted gross income tax purposes, the banking entity is not taxable
				  under the Act and thus cannot be part of the consolidation.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-112 - Consolidated returns for other taxes not required

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-14
Sec. 112.
Consolidated Indiana Gross Income Tax and Federal Income Tax
				  Returns. Whether an affiliated group is or is not filing Indiana gross and/or
				  Federal income tax returns on a consolidated basis has no bearing on its
				  eligibility to file consolidated adjusted gross income tax returns. However,
				  the Department strongly recommends that taxpayers filing on a consolidated
				  basis for purposes of one tax, do likewise for purposes of all taxes. If
				  returns are filed separately for one tax and consolidated for the other, the
				  burden will be on the taxpayers to provide a complete breakdown of the
				  affiliated corporations' gross, adjusted gross, and supplemental net income tax
				  liabilities, quarter payments, and other credits.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-113 - Withholding on distributions to nonresident beneficiaries of Indiana trusts and estates

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-15; IC 6-3-6; IC 6-8.1-10
Sec. 113.
Withholding on Distributions To Nonresident Beneficiaries of
				  Indiana Trusts and Estates. Beginning January 1, 1978, Indiana trusts and
				  estates distributing income subject to withholding to nonresident beneficiaries
				  are required to withhold adjusted gross income tax from such distribution.
				  "Income subject to withholding" is defined as all income subject to adjusted
				  gross income tax, except interest and dividends. An allowance is made for
				  expenses, administrative fees, a personal exemption, and other allowable
				  adjustments. Examples of income subject to withholding include farm income,
				  business income, and rents and royalties from Indiana real estate.
These withholding provisions apply only to distributions to
				  nonresident beneficiaries. A beneficiary's residency should be determined at
				  the time of distribution. However, if a resident beneficiary later becomes a
				  nonresident, the fiduciary is required to withhold on all subsequent payments
				  to that beneficiary. Part-year residents and nonresidents should take credit on
				  their adjusted gross income tax returns for any tax withheld.
The withholding rate for these fiduciaries is two percent
				  (2%). Any deficiency in taxes withheld and remitted to the state will subject
				  the trust or estate to the penalties and interest imposed by IC 6-3-6. The
				  Department may, at its option, require the withholding agent to post a bond to
				  ensure payment of the tax.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-114 - Withholding returns and payments by trusts and estates

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-15
Sec. 114.
Withholding Returns and Remittances of Trusts and Estates.
				  Trusts and estates required to withhold adjusted gross income tax by IC
				  6-3-4-15 will file monthly returns on Form WH-1. Remittance will be made with
				  the return, and such remittance will be due on the thirtieth day of the month
				  following the month during which the tax was withheld. If the fiduciary cannot
				  determine what part of the distribution is made up of "income subject to
				  withholding," the Department will permit the tax to be remitted when such
				  determination can be made, i.e., at the end of the calendar or fiscal year when
				  the net profits of a business can be determined.
Trusts and estates must furnish to each nonresident
				  beneficiary a Form WH-18 by the thirtieth day of the month following the close
				  of the taxable year. This statement will indicate the total distributions to
				  the beneficiary for the year and the amount of tax withheld, and will accompany
				  the beneficiary's annual return as proof of payment.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-115 - Reciprocal agreement states

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-5-1
Sec. 115.
Reciprocity Agreements. Reciprocal income tax agreements now
				  exist between Indiana and the states of Illinois, Kentucky, Michigan, Ohio,
				  Pennsylvania and Wisconsin. The agreements provide that Indiana will not impose
				  its adjusted gross income tax on salaries, wages and commissions earned by
				  legal residents of these states in Indiana and they in turn will not impose
				  their individual income tax on wages, salaries and commissions earned by legal
				  residents of Indiana in those states. Employees resident in any of the
				  above-mentioned states and working in Indiana must submit to their Indiana
				  employer an affidavit as to their legal residence as proof that no withholding
				  of Indiana taxes is required (See Regulation 6-3-3-3(a)(030)
[ 45 IAC
				  3.1-1-76 ]
).
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-153 - Taxation of a corporate partner

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3
Sec. 153.
(a) A
				corporate partner's share of profit or loss from a partnership will be included
				in its federal taxable income and therefore generally subject to the same rules
				as any other adjusted gross income.
(b) If the corporate partner's activities and
				the partnership's activities constitute a unitary business under established
				standards, disregarding ownership requirements, the business income of the
				unitary business attributable to Indiana shall be determined by a three (3)
				factor formula consisting of property, payroll, and sales of the corporate
				partner and its share of the partnership's factors for any partnership year
				ending within or with the corporate partner's income year, with the following
				modifications:
(1) The value of property
				which is rented or leased by the corporate partner to the partnership or vice
				versa shall, with respect to the corporate partner, be excluded from the
				property factor of the partnership or eliminated to the extent of the corporate
				partner's interest in the partnership, whichever the case may be, in order to
				avoid duplication.
(2) Intercompany
				sales between the corporate partner and the partnership shall be eliminated
				from the corporate partner's sales factor as follows:
(A) Sales by the corporate partner to the
				partnership to the extent of the corporate partner's interest in the
				partnership.
(B) Sales by the
				partnership to the corporate partner not to exceed the corporate partner's
				interest in all partnership sales.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-154 - Airport development zones

Current through July 10, 2024
Authority: IC 6-8.1-3-3; IC 8-22-3.5-15
Affected: IC 6-3; IC 8-22-3.5-3; IC 36-3-1
Sec. 154.
(a) A
				person who locates and operates a qualified airport development project in an
				airport development zone in a consolidated city shall not incur any adjusted
				gross income tax liability or supplemental net income tax liability as a result
				of the following activities:
(1) Locating the
				project in the consolidated city.
(2) The construction or completion of the
				project.
(3) The employment of
				personnel or the ownership or rental of property at or in conjunction with the
				project.
(4) The operation of the
				project or the activities at or in connection with the project.
In other words, the person's apportionment factor will not
				  change due to the completion or operation of the project. As an example, assume
				  that the project is an airline maintenance facility. At the completion of the
				  project, the facility is worth six hundred million dollars ($600,000,000). The
				  payroll from operating the facility is two hundred million dollars
				  ($200,000,000). The person also realizes fifty million dollars ($50,000,000) in
				  its first year of operations from maintenance performed on airplanes belonging
				  to other parties and from the sale of airplane parts delivered within the
				  airport development zone. These amounts would not appear in either the
				  numerator or the denominator of their respective factors. Also, the person will
				  not be subject to adjusted gross income tax or supplemental net income tax on
				  nonbusiness income earned by the person that is allocable to the airport
				  development zone.