Article: 50391
The IN – Special Deductions screen walks you through common Indiana deductions that may apply to your return. The first time you open it, you’ll see an interview-style layout, asking a series of Yes/No questions.
After answering the initial questions, the form will expand to show the applicable sections based on your answers. Selecting Yes to any question will unlock the relevant section(s) for entry.
Interview Questions
You will be asked:
- Did you pay rent on your residence and was it subject to Indiana property tax? (Renter’s Deduction)
- Did you pay Indiana residential real estate taxes on your primary home? (Residential Property Tax Deduction)
- Did you have any dependent children enrolled in a private or home school? (Private School/Home School Deduction)
- Do you need to adjust amounts from your Federal return?
Selecting Yes to any question will unlock the relevant section(s) for entry.
Deduction Sections
Renter’s Deduction
If you select Yes, you’ll be prompted to enter:
- Total amount of rent paid
- Number of months you paid rent
- Whether the rented property differs from the address used on your return
- Landlord’s full name and mailing address (including ZIP and state)
Residential Property Tax Deduction
If Yes:
- Enter the total amount of property tax paid
- Number of months you lived at the property
- Confirm whether the property matches the one on your federal return
Private School/Home School Deduction
If Yes, enter the number of dependent children enrolled in private or home school
Adjusting Amounts from Federal Return
Selecting I need to adjust some amounts from my Federal return at the bottom of the screen expands additional deduction fields, many of which are override fields (highlighted in green).
These include:
- Military Retirement Income (Code 632)
- Qualified Enterprise Zone Compensation (Code 603)
- Civil Services Annuities (Code 601)
- Surviving Spouse Pension and Annuities
- Lottery Winnings Annuity (Code 629)
- State tax refund reported on federal return
- Interest on U.S. obligations
- Taxable portion of Social Security and Railroad Retirement benefits
- Military service deduction
- Indiana net operating loss deduction
- Non-taxable unemployment compensation
Less Common Deductions
You may select additional deductions from drop lists and enter amounts. Use this section only if you’ve reviewed the available deduction types and they apply to you.
How to Add This Screen
- Click on the State Taxes section on the left-hand side of the screen.
- Click the link “I’d like to see the forms I’ve filled out or search for a form.”
- Use the drop list to select Indiana.
- Under the Credits tab, select IN – Special Deductions.
- Complete the screen.
- Click Save.
Further Information
For a full list of Indiana deduction codes and eligibility requirements, visit:
Indiana Department of Revenue – Individuals: https://www.in.gov/dor/individual-income-taxes/