1. 2008 Indiana Department of Revenue Tax Update
Thursday, April 20, 2017

2. Electronic Filing
Nearly 1.9 million filed state return using an electronic filing option in 2007
22-percent increase over the same time last year
Each electronic return filed saves taxpayers 96 cents
Thursday, April 20, 2017

3. I-File Fast, friendly and free
Prepare and file Indiana tax returns using the Internet
Available to taxpayers and tax professionals
Uses a question/answer format
Thursday, April 20, 2017

4. Collection Allowance Changes
Change effective for reporting periods after June 30, 2008
0.73 percent if the total sales tax collected was less than $60,000
0.53 percent if the total sales tax collected was between $60,000 and $600,000
0.26 percent if the sales tax collected was more than $600,000
Thursday, April 20, 2017

5. Electronic Funds Transfer (EFT) Filers
Effective January 1, 2009 EFT taxpayers are required to file monthly ST-103 forms rather than quarterly recaps
Effective January 1, 2009 EFT withholding taxpayers are required to file monthly returns (WH-1) in addition to the monthly tax payment
Annual WH-3 is still required
Thursday, April 20, 2017

6. Withholding Tax
Effective Jan. 1, 2009 – County tax withheld must be broken down by county on WH-1 return.

7. Individual Income Tax
Renters Deduction - Increased from $2,500 to $3,000
Homeowners Deduction taxpayers billed and paid property tax payable for 2007 may be eligible for up to $2,500 deduction
Taxpayers can also be eligible for 2008 deduction for taxes normally payable in 2008
Thursday, April 20, 2017

8. Military Income
Military Service Deduction – The maximum military service income-tax deduction is increased from $2,000 to $5,000 per qualifying person
Thursday, April 20, 2017

9. Military Income
National Guard and Reserve Component Member Deduction - For tax years beginning after Dec. 31, 2007
For service as a result of involuntary orders
During the period the person is deployed or mobilized for full time service
During the period for which the member’s National Guard unit is federalized
Thursday, April 20, 2017

10. Military Income To take these deductions:
IT-40 Schedule 1 “Other Deduction"
IT-40PNR Schedule D
Thursday, April 20, 2017

11. Military Income Notes:
An individual may be eligible for both deductions within a given year
Both deductions when combined cannot be greater than the total taxable military income received during the year
Thursday, April 20, 2017

12. Estimated Tax Carryover
IT-40 and IT-40PNR – overpayments can be carried over to next year’s estimated tax account
Beginning with 2008 tax returns, a remittance can no longer be added for purposed of increasing the amount to be carried over
Thursday, April 20, 2017

13. Composite Filer Credit
S corps and partnership are required to include all individual nonresident shareholder/partners on a composite tax return at the entity level. Individual nonresidents included on the composite return may have other taxable Indiana-source income, requiring them to file the IT-40PNR. If so, the individual may be eligible for a composite filer credit.
Thursday, April 20, 2017

14. County Tax
Counties can adopt or change local income tax rates through Dec. 31, Rates printed in booklets may have changed. For the current rates, visit:
county tax schedules have been modified
if Lake County adopts local tax, DOR must collect certain information for Lake Co distribution purposes
Thursday, April 20, 2017

15. County Tax
New Schedule CT-40EZ
Thursday, April 20, 2017

16. Processing Paper Returns
Include all information loose in the envelope
No Staples
No Paper Clips
1D Barcode will be on most forms/schedules
Barcode will identify:
tax year
form type
page
Thursday, April 20, 2017

17. 2009 Earned Income Credit
increases from 6 percent of the federal credit to 9 percent (effective Jan. 1, 2009)
Thursday, April 20, 2017

18. IT-40ES
Effective Jan. 1, 2009
you must distinguish between state AGI tax and LOIT on the IT-40 ES and ES-40
Thursday, April 20, 2017

19. WH-4
Effective Jan.1, 2009
nonresident alien can claim only one exemption for purposes of figuring withholding tax
Thursday, April 20, 2017

20. WH-4P
Effective Jan. 1, 2009
withholding of AGI from an annuity, pension or retirement plan must distinguish between AGI tax and LOIT
Thursday, April 20, 2017

21. Personal Representative Information
Taxpayers can use this area of the tax returns to authorize a personal representative
Personal representative can be a friend, relative, etc.
Authorization can be revoked anytime with signed statement
Required information:
name
Phone number and complete address
Thursday, April 20, 2017

22. Paid Preparer Information
Required Information:
Name/address of firm
IN-OPT on file with preparer if not filing electronically
ID number
Telephone number
Complete address
Signature with date
Thursday, April 20, 2017

23. Power of Attorney Individual representative name address
telephone number
Firm or Corporation
Thursday, April 20, 2017

24. Power of Attorney The Department will accept a signed, faxed POA.
Fax POA to: (317)
We will even accept an electronic image:
PDF, JPEG, GIF
the image to:
Mail to: P.O. Box 7230 Indianapolis, IN
FAQs visit:
Thursday, April 20, 2017

25. Electronic Filing Mandate
if a professional preparer files more than 100 tax return in a calendar year for individuals, those returns must be filed in an electronic format
Thursday, April 20, 2017

26. Electronic Filing Mandate
Effective Jan
A penalty for professional preparer of $50 is imposed for each return that is not filed electronically, $25,000 per calendar year.
Exception
Individuals may opt-out having their return filed electronically. Form IN-OPT must be signed and filed with preparer. Opt-out option must be indicated on the return.
Thursday, April 20, 2017

27. New Plan Administrator
CollegeChoice 529
New Plan Administrator
Account numbers will now be 11 digits beginning with “61” or “62”
For more information visit:
To claim credit you must include the IN-529: IB #98
Thursday, April 20, 2017

28. Obsolete Schedules Schedule 3 Schedule 3A Schedule F Schedule F1
forms used to report partnership and/or S corporation income (loss) no longer required
Schedule 3
Schedule 3A
Schedule F
Schedule F1
Thursday, April 20, 2017

29. Estimated Corporate Payments
For taxable years beginning after Dec. 15, 2007, a corporation or financial institution is not required to file quarterly estimated payment if its annual unpaid liability is less than $2,500. The previous limitation was $1,000.
Thursday, April 20, 2017

30. Corporate Information
Qualified Patents Income Exemption
Income tax bulletin #104
Captive Real Estate Investment Trust
Effective Jan. 1, 2008 – Corps must add back deductions for dividends paid to shareholders of a captive real estate investment trust for taxable years beginning after Dec. 31,2007

31. Other Indv/Corporate Credits
Indiana Research Expense Tax Credit Increasing
Ethanol Production Tax Credit to Include Credit for Cellulosic Ethanol
Information Bulletin #93
Energy Star Heating and Cooling Equipment Tax Credit
Information Bulletin # 100
Thursday, April 20, 2017

32. Other Indv/Corporate Credits
Rerefined Lubrication Oil Facility Credit Repealed
Effective March 20, 2007 – credit is repealed
Coal Gasification Technology Investment Tax Credit
Information Bulletin #99
Media Production Credit
Commissioner’s Directive #36
Ethanol Production Credit
Information Bulletin #93
Thursday, April 20, 2017

33. Additional Highlights
New Subscription Tool Available
After registering, you’ll receive an to inform you of Web site updates
Subscribe to the entire Web site or a specific area
Choose when you receive s – Daily, Weekly or Monthly
Thursday, April 20, 2017

34. Additional Highlights
INtax
Instant access to file and pay business taxes online
Review account history
Thursday, April 20, 2017

35. Additional Highlights
Feedback
Form changes
Web site suggestions
Department interaction
Thursday, April 20, 2017