Indiana Form IT-40 Instructions

Complete your Indiana tax return yourself.

Full-time residents of Indiana use form IT-40 to file state income tax. IT-40 will consist of entering some information from your federal tax return to determine what your total tax liability is for Indiana taxes.

Step 1

Write your name, address and Social Security number in the top section for form IT-40. If filing a joint return, enter your spouse's name and Social Security number. If you are married, but filing separately, check the box on the right side after your street address. Enter the county code for where you live and where you work for yourself and a spouse in the boxes under your personal information. The county code is found on the back side of Schedule CT-40, which you complete to calculate your county tax.

Step 2

Write in your federal adjusted gross income for the 1040 form you used to file your federal taxes. The adjusted gross income is on line 4 of form 1040EZ, line 21 of form 1040A and line 37 of form 1040. If you filled out Schedule 1 Add Backs, enter the amount on line 9, on line 2 of form IT-40. Add lines 1 and 2 together. Enter the total on line 3. Schedule 1 Add Backs is for people who completed Schedules F, E, C-EZ and C with their federal returns.

Step 3

Complete Schedule 2 and enter the total on line 4. Schedule 2 is for people who will take a renter's deduction for rent paid on a residence or a place that was subject to property taxes in Indiana. On line 5, subtract line 4 from line 3 and enter the total.

Step 4

Fill out Schedule 3, if you claimed exemptions on your federal tax return. You can claim an exemption for yourself, your spouse and any qualifying dependents. Enter the amount from Schedule 3 on line 6 of form IT-40. Subtract line 6 from line 5. This is your Indiana taxable income.

Step 5

Multiply the amount on line 7 by .034. Enter this amount on line 8. Enter the county tax amount from Schedule CT-40 on line 9. If the amount is zero or less, write in "0" on line 9. Complete Schedule 4 if you have other taxes to report, which may include household employee taxes, out-of-state purchases or Indiana's advanced earned income credit payment reported on your W-2. Enter the amount from Schedule 4 on line 10. Add lines 8 through 10. Enter the amount on line 11.

Step 6

Complete Schedule 5 to include any credits you may take. Enter this amount on line 12. Fill out Schedule 6, which is any off-set credit you may have, including local taxes paid in another state or the county credit for permanently disabled or people over 65 years of age. Enter the total from line 7 of Schedule 6 on line 13. Add lines 12 and 13 together. Enter this amount on line 14.

Step 7

Enter the amount of Indiana tax from line 11 on line 15. If line 14 is more than line 15 or equal to line 15, subtract the amount on line 15 from the amount on line 14. Enter the result on line 16. If the amount on line 15 is less than line 14, skip to line 23 and subtract line 14 from line 15. Enter the total on line 23.

Step 8

Complete lines 17 through 20 if any apply to you. Subtract the totals on line 19d and 20 from the amount on line 18. This is the amount of your refund. Enter the refund amount on line 21. If you want to have your refund directly deposited into your bank account, enter your routing number and bank account number.

Step 9

Complete lines 24 and 25 only if you are filing after April 15. Add the amount on lines 23 through 25. Enter the total amount you owe on line 26.

Step 10

Sign and date form IT-40. Include all schedules that you filled out to complete form IT-40. This may include any of Schedules 1, 2, 3, 4, 5 or 6. Include your 1099 and W-2 forms. If you owe money, write a check to the Indiana Department of Revenue. Place the schedules, IT-40 and check in an envelope. Mail the envelope to the address just under your signature on form IT-40.

Things You'll Need

  • Federal tax return

  • IT-40 form

  • Schedule CT-40

  • Schedule 1

  • Schedule 2

  • Schedule 3

  • Schedule 4

  • Schedule 5

  • Schedule 6

references & resources