IN – Special Deductions

Article: 50391

Overview

This 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.

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 Pension and Annuities
  • Lottery Winnings Annuity (Code 629)
  • State tax 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

  1. Click on the State Taxes section on the left-hand side of the screen.
  2. Click the link “I’d like to see the forms I’ve filled out or search for a form.”
  3. Use the drop list to select Indiana.
  4. Under the Credits tab, select IN – Special Deductions.
  5. Complete the screen.
  6. 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/