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IN Nonresident and Part Year Resident

Tax Year 2013

 

This worksheet is used to file the taxpayer's state tax return as a nonresident or part-year resident of Indiana.

 

Who Must File
A taxpayer must file an Indiana income tax return if he or she lived in Indiana for part of the year and received income during that time, or if the taxpayer did not live in Indiana but had income from an Indiana source.

 

See the 2013 Indiana Nonresident and Part Year Resident Income Tax Booklet for more information and details.

Form IT-40 PNR
Taxpayer

County
Select from the dropdown list the county where the taxpayer lived if he or she was a part-year resident, or select the state where the taxpayer lived is he or she was a nonresident and lived in one of the states at the end of the list.

 

School District
Select from the dropdown list the school district where the taxpayer lived only if he or she was a part-year resident.

 

County Where Taxpayer Worked
Select from the dropdown list the county where the taxpayer worked, or the state if the state is one of the states at the end of the list, or "Other States" if the state where the taxpayer worked is not listed at all.

Spouse

County
Select from the dropdown list the county where the spouse lived if he or she was a part-year resident, or select the state where the spouse lived is he or she was a nonresident and lived in one of the states at the end of the list.

 

County Where Spouse Worked
Select from the dropdown list the county where the spouse worked, or the state if the state is one of the states at the end of the list, or "Other States" if the state where the spouse worked is not listed at all.

Form IT-40 PNR Continued
Line 17 Nongame Wildlife Fund
Enter the amount the taxpayer would like donated from his or her refund to the Nongame Wildlife Fund.
Form IT-40 PNR - Schedule A

Section 1 - Income or Loss

Line 3

Taxable Interest Income
Enter all interest earned from any source while a resident of Indiana, and enter interest earned only from Indiana sources while a nonresident of Indiana.

Line 4 Dividend Income
Enter all dividends earned from any source while a resident of Indiana, and enter dividends earned only from Indiana sources while a nonresident of Indiana.
Line 5

Taxable Refunds and Credits
Enter any taxable refunds, credits or offsets of state and local incomes taxes that were reported on the federal return and received while a resident of Indiana.

 

Do not enter any amounts received while a nonresident.

Line 6

Alimony Received
Enter any alimony received that was reported on the federal return and received while a resident of Indiana.

 

Do not enter any amounts received while a nonresident.

Line 8

Capital Gains or Losses from Federal Return
Enter all capital gains or loss from federal Schedule D that was earned while the taxpayer was a resident of Indiana, and enter any additional capital gains or loss from the sale or exchange of property located in Indiana while the taxpayer was a nonresident.

 

Important Note about Capital Losses: Capital losses are limited in the same manner as federal law, and they can be carried over to future years.

Line 9 Other Gains or Losses from Form 4797
Enter all other gains or loss from federal Form 4797 that was earned while the taxpayer was a resident of Indiana, and enter any additional other gains or loss from the sale or exchange of Indiana property while the taxpayer was a nonresident.
Line 10

Total IRA Distribution
Enter the amount of any IRA distribution reported on the federal return that was received while the taxpayer was an Indiana resident.

 

Do not enter any amounts received while a nonresident.

Line 12 Net Rent & Royalty Income/Loss from Federal Schedule E
Enter net rent and royalty income or loss reported on the federal return that was earned while the taxpayer was a resident of Indiana, and enter any additional royalty income or loss form the conduct of a trade of business in Indiana, and/or rent income or loss from personal property or real property located in Indiana while the taxpayer was a nonresident.
Line 13

Income or Loss from Partnerships
Enter all income or loss from a partnership reported on the federal return that was earned while the taxpayer was a resident, and enter any income or loss from a partnership located in Indiana that was earned while the taxpayer was a nonresident.

 

Note: The partnership is required to provide the taxpayer with the amount of income or loss attributable to Indiana.

Line 14 Income or Loss from Trusts & Estates
Enter all income or loss from a trust or partnership reported on the federal return that was earned while the taxpayer was a resident, and enter any income or loss from a trust or estate located in Indiana that was earned while the taxpayer was a nonresident.

 

Note: The fiduciary is required to provide the taxpayer with the amount of income or loss attributable to Indiana.

Line 15 Income or Loss from S Corporations
Enter all income or loss from an S-corporation reported on the federal return that was earned while the taxpayer was a resident, and enter any income or loss from an S-corporation located in Indiana that was earned while the taxpayer was a nonresident.

 

Note: The S-corporation is required to provide the taxpayer with the amount of income or loss attributable to Indiana.

Line 17 Unemployment Compensation
Enter unemployment compensation reported on the federal return that was received while the taxpayer was an Indiana resident.

 

Do not enter any amounts received while a nonresident.

Line 18 Taxable Social Security Benefits
Enter the taxable portion of any social security or railroad retirement benefits reported on the federal return that was received while the taxpayer was an Indiana resident.

 

Do not enter any amounts received while a nonresident.

Line 19

Indiana Apportioned Income from Form IT-40P NRA
Enter the amount from Part 3, Line 6 of this form, if applicable.

 

If the taxpayer had income or loss from an entity that is apportionable to Indiana and one or more other states, the taxpayer must file the 2013 Schedule IT-40PNRA, and enter the amount from Line 6 of Part 3 into this line. All other lines in the schedule should be left blank for that entity. The taxpayer should print the return and attach this schedule with the rest of the form before mailing.

Line 20 Other Income Reported on Federal Return
Enter any other income or loss that was reported on the federal return that has not yet been entered that the taxpayer earned while the taxpayer was a resident of Indiana and/or was earned from an Indiana source while the taxpayer was a nonresident.
Line 21C Military Income
Enter the taxpayer's military income only if Indiana is not the taxpayer's home of record.
Section 2 - Adjustments to Income
Line 23 Certain Business Expenses of Reservists, Performing Artists, etc.
Enter the portion of the taxpayer's federal deduction for certain business expenses of reservists, performing artists, and fee-based government officials that is directly related to Indiana income produced in conjunction with those expenses.
Line 24 Health Savings Account Deduction
Enter the portion of the taxpayer's federal deduction for Health Savings Account that is directly related to Indiana income.
Line 25

Moving Expenses
Enter the portion of the taxpayer's federal deduction for moving expenses that was for a move into Indiana or within Indiana.

 

Do not enter any amounts for a move outside of Indiana.

Line 29

Penalty on Early Withdrawal of Savings
Enter any penalty on early withdrawal of savings that was reported on the federal return and forfeited while an Indiana resident.

 

Do not enter any amounts forfeited while a nonresident.

Line 30

Alimony Paid
Enter any alimony paid that was reported on the federal return and paid while an Indiana resident.

 

Do not enter any amounts paid while a nonresident.

Line 32

Student Loan Interest Deduction
Enter any student loan interest paid that was reported on the federal return and paid while an Indiana resident.

 

Do not enter any amounts paid while a nonresident.

Line 35

Other -Jury Duty Pay, ArcherMSA, etc.
Enter any other adjustments claimed on the federal return that have not already been entered, and that are directly related to Indiana source income.

 

The following are some of the most common deductions:

  • Jury Pay deducted from the federal return that was turned over to the taxpayer's employer if that employer is in direct relation to the taxpayer's wages begin taxed by Indiana.
  • Scholarship and Fellowship Grants excluded from income while the taxpayer was a resident of Indiana or residing in Indiana.

Important Note: Do not enter any itemized deductions from the federal return on this line.

Form IT-40 PNR Schedule B Add-Backs
Line 3

Bonus Depreciation and Fed/State Depreciation Variance Add-Back

Line 4

Section 179 Expense Excess Add-Back

Form IT-40 PNR Schedule C Deductions
Line 1-Renter's Deduction

Address Where Rented
Enter the address of the rented property if the taxpayer meets the eligibility requirements below to take the renter's deduction.

 

Landlord's Name and Address
Enter the landlord's name and address who rents the property to the taxpayer.

 

Number of Months Rented
Select from the dropdown list the number of months this property was rented.

 

Amount of Rent Paid
Enter the amount of rent paid during the tax year, up to $3000.

 

Eligibility
The taxpayer is eligible for this deduction if he or she meets the following requirements:

  1. The taxpayer paid rent on his or her principal place of residence (defined below), and
  2. The property the taxpayer rented was subject to Indiana property tax and not exempt (defined below) from property tax.

Principal Place of Residence
The taxpayer's "principal place of residence" is the place where the taxpayer had the taxpayer's true, fixed, permanent home and where the taxpayer intends to return after being absent. If the taxpayer rented a manufactured home or paid rent for the taxpayer's manufactured home lot, the taxpayer may claim the renter's deduction if the above requirements are met.

 

Caution: Rent paid for summer homes or vacation homes is not deductible.

 

Exempt from Property Tax
The taxpayer cannot claim the renter's deduction if the rental property was exempt from Indiana property tax. Examples of this type of property include the following:

  1. Government owned housing,
  2. Property owned by a nonprofit organization,
  3. Student housing,
  4. Property owned by a cooperative association, and
  5. Property located outside of Indiana.

Important Note: The taxpayer must maintain copies of the taxpayer's rental receipts, landlord identifying information, and lease agreements as the Department of Revenue may request this information.

 

See the Income Tax Information Bulletin 38 for more information and details about this deduction.

Line 2-Residential Homeowners Property Deduction

Address for Property on Which Tax was Paid
Enter the address of the property for which property taxes were paid if the taxpayer meets the eligibility requirements below to take the Residential Homeowner's Property deduction only if this address is different than the address filed for the return.

 

Number of Months Resided
Select from the dropdown list the number of months the taxpayer resided at this property.

 

Line 2a - Amount of Property Tax Paid
Enter the amount of property taxes paid during the tax year, minus any amount that is deduced as a business expense on the federal return, up to $2,500.

 

Eligibility
The taxpayer is eligible for this deduction if he or she meets the following requirements:

  1. The taxpayer paid property taxes on his or her principal place of residence (defined below) during the tax year, and
  2. The taxpayer cannot the Lake County residential income tax credit below.

Principal Place of Residence
The taxpayer's "principal place of residence" is the place where the taxpayer had the taxpayer's true, fixed, permanent home and where the taxpayer intends to return after being absent.

Caution: Property taxes paid for summer homes or vacation homes are not deductible.

Taxpayer and Spouse Line 8

Non Indiana Locality Deduction
Enter up to $2000 for the taxpayer and/or spouse for income earned outside of Indiana that was taxed by an out of state local government unit.

 

See the Income Tax Information Bulletin 28 for more information and details about this deduction.

Line 9

Insulation Deduction
Enter the actual cost of materials and labor, up to $1000, if the taxpayer installed new insulation, weather stripping, double pane windows, storm doors or storm windows in the taxpayer's Indiana home during the tax year and met the eligibility requirements as described below.

 

Do not include any amounts for the cost of labor of the taxpayer.

 

Eligibility Requirements
The following requirements must be met to be eligible for this deduction:

  1. The insulating items must have been installed in the taxpayer's principal place of residence located in Indiana,
  2. The part of the taxpayer's home where the insulating items were installed must have been built before January 1, 2005,
  3. The insulating items must be an upgrade and not a replacement or like-kind item (Example: Replacing a double pane window with a new double pane window will not qualify, but replacing a double pane window with a triple pane window will qualify), and
  4. The deduction must be taken in the year the insulating items were installed.
Other Deductions - Line 11
Line 11-Civil Service Annuity Deduction

Enter the amount of federal civil service annuity payments received by the taxpayer and/or spouse, up to $2,000, minus the amount of any social security or railroad retirement benefits received, if the taxpayer meets the eligibility requirements described below for this deduction.

 

Example: The taxpayer received $10,000 in annuity benefits and $1,800 in social security benefits. The taxpayer will subtract the $1,800 from $2,000 for a deduction of $200.

 

Eligibility Requirements
This deduction is available to the taxpayer and/or spouse if he or she was at least 62 years of age on the last day of the tax year and is the annuitant. This deduction is not available to the beneficiary of the annuitant.

Line 11-National Guard and Reserve Component Members Deduction

Enter the amount of military income received as a result of involuntary orders during the period the taxpayer was deployed or mobilized for full time service or during the period the taxpayer's Indiana National Guard unit was federalized if the taxpayer meets the eligibility requirements described below.

 

Eligibility Requirements
The taxpayer or spouse must be a member of the reserve component of the Army, Navy, Air Force, Coast Guard, Marine Corps, or Merchant Marine, or a member of the Indiana Army National Guard or Indiana Air National Guard.

 

Important Note: Do not make any entry for Combat Pay because it is already excluded from federal and state income.

Form IT-40PNR Schedule F Credits
Earned Income Credit
This credit may be available to the taxpayer if the federal earned income credit was available. Answer the questions below, and the credit will be automatically calculated and added to the return.
Line 5A Select "Yes" if the taxpayer is reporting an income or loss from the rental of personal property not used in a trade or business.
Line 5B Enter any royalty income reported on the federal Schedule E, Line 4 plus any income from the rental of personal property shown on Form 1040, Line 21.
Line 5C Enter any expenses from Schedule E, Line 20, related to royalty income, plus any expenses from the rental of personal property deducted on Form 1040, Line 36.
Line 5D Enter the total of all net income or losses from qualified joint ventures that are passive activities with rental real estate income reported on the Schedule C, Line 31 and/or Schedule C-EZ, Line 3, but not included in net earnings from self-employment.
Line 5E Enter any income reported from the rental of personal property on federal Form 1040, Line 21, plus any royalty income included on federal Schedule E, Line 4.
Line 5F Enter any expenses from the rental of personal proprety deducted on federal Form 1040, Line 36, plus any expenses from federal Schedule E, Line 20 related to royalty income.
Line 6 - Lake County Residential Income Tax Credit
Line 6A

Property Tax Paid for Lake County Residence
Select from the dropdown list, either "Yes" or "No" as to whether the taxpayer paid property on his or her residence in Lake County during the tax year and meets the eligibility requirements for the Lake County Residential Income Tax Credit described below.

 

Eligibility Requirements
The taxpayer must meet the following requirements to be eligible for this credit:

  1. The taxpayer must have paid property taxes to Lake County during the tax year for his or her residence, which is the taxpayer's principal dwelling which he or she owns or is under contract to purchase.
  2. The taxpayer's earned income must be less than $18,600 which includes the taxpayer's (and the spouse's if filing a joint return) wages, salaries, tips, and other compensation, plus net earnings from self-employment income on which the taxpayer is required to pay self-employment tax on federal Schedule SE.
  3. The taxpayer cannot claim the homeowner's residential property tax deduction on Indiana Schedule 1 above.

Important: The taxpayer is not required to have earned income to be eligible for this credit.

Line 6B

Property Tax Paid
Enter the amount of property tax paid on the Lake County residence during the tax year.

Form IT-40 PNR Schedule G Offset Credits
Line 1-Credit for Local Taxes Paid Outside of Indiana

Rate
Enter the rate from the 2013 Rate Conversion Chart which can be found on Page 40 of the 2013 Indiana Full-Year Resident Individual Income Tax Booklet as follows:

  • If the taxpayer lived in a county on the first day of the tax year that has a rate on the Rate Conversion Chart, enter the rate from Column A.
  • If the taxpayer lived in Lake County on the first day of the tax year and worked in a county that has a rate on the Rate Conversion Chart, enter the rate for the work county from Column B.

Amount of Income Taxed by Non-Indiana Locality
Enter the taxpayer's and/or spouse's income that was taxed by a locality located outside of Indiana.

 

Amount of Tax Paid to Non-Indiana Locality
Enter the amount of tax paid to the locality located outside of Indiana.

 

Do not make an entry for the following circumstances:

  • If the taxpayer received a full refund of the non-Indiana tax, or if the taxpayer received a credit from the locality for taxes paid to an Indiana county, or
  • An entry for any state taxes paid - This credit is available for local taxes paid only.
Line 5

Credit for Taxes Paid to Other State
The taxpayer may be eligible for a credit for taxes paid to another state if the taxpayer was a resident of Indiana for part of the year and earned income in and paid taxes to another state during that period of residency.

 

Amount of Tax Paid to Other State
Enter the amount of actual tax paid to the other state which can be found on the income tax return for that state.

 

Income from other State Subject to Indiana Tax
Enter the total amount of income in the other state that is also subject to Indiana tax.

 

 Important Note: The taxpayer must attach the other state's income tax return (not just the W-2) from the other state to this state tax return and mail the Indiana state tax return to receive this credit.

Form IT-40 PNR Schedule H - Residency and Additional Required Information
Taxpayer/State(s)

State Residence-State 1
Enter the state's two digit postal code in which the taxpayer first resided during the tax year.

 

Time Period
Enter the time period by Month and Year that the taxpayer lived in that state during the tax year.

 

Resident State Tax Return
Select "Yes" if the taxpayer filed a state tax return in the state of residence entered above. Otherwise, select "No".

 

States 2 through 4
Enter the information as directed above for up to 3 additional states.

Spouse/State(s) Enter the information for the spouse in the same manner as directed above for the taxpayer.
Form CT-40 PNR County Tax Schedule for Residence
Section 1, Line 7 Enter the amount of income earned and taxed in any Kentucky county during the tax year.
Section 2, Line 1

Enter the taxpayer's and spouse's Indiana principal employment income (defined below) for the year only if the taxpayer was a resident of a county that had not adopted a county income tax or was a nonresident and worked in an Indiana county that had adopted a county income tax.

 

Do not include any of the following:

  • Passive source income like nonbusiness interest and dividends, pensions, capital gains, farm rental, etc., or
  • Income from a part-time job if the taxpayer had it at the same time the taxpayer had a full-time job.

Indiana Principal Employment Income
This includes income from Indiana wages, tips, salaries and commissions, net self-employment income from federal Schedule C and/or net farm income from federal Schedule F earned by the taxpayer's principal job.

Section 2, Line 2

Enter the taxpayer's and spouse's allowable deductions that were included on the federal and/or Indiana return that have a direct relationship to the Indiana income entered on the previous line.

 

Allowable Deductions
These include the following state deductions:

  • Airport development zone employee deduction
  • Enterprise zone employee deduction
  • Active military pay deduction
  • National Guard and reserve component member's deduction, and
  • Indiana medical savings account deduction.

They also include the following federal deductions directly related to Indiana income:

  • Educator expenses allowed on federal Form 1040
  • Certain business expenses of reservists, performing artists and fee-based government officials,
  • Health savings account deduction,
  • Moving expenses allowed to the extent that income earned from the move is entered on the line above,
  • One-half of self employment tax,
  • SEP, SIMPLE and other qualified plans,
  • Self-employment health insurance deduction,
  • IRA deduction,
  • Jury duty pay deduction given to employers, and
  • Archer MSA deduction allowed on federal Form 1040.

Direct Relationship
The deduction must have a direct relationship to the income reported both in how the income is earned and how the deduction is paid, and according to whether the deduction is for the taxpayer or spouse. A taxpayer cannot enter a deduction applicable to his or her spouse for income only the taxpayer earned.

Form CC-40 Indiana College Credit
The taxpayer may be eligible for up to $100 credit on a single return or $200 on a joint return for contributions to eligible colleges and universities or to corporations and foundations organized and operated exclusively for the benefit of any eligible colleges or universities.

 

See Income Tax Information Bulletin 14 for more information and details.

Name
Select the name of the College or University from the dropdown list and the Code number will be automatically entered.
Date

Enter the date of the contribution.

Amount

Enter the amount of the contribution.

 

Do not include any amounts of tuition or other fees paid to a college or university.

 

Important: The taxpayer must maintain documentation of the taxpayer's contributions as the Department can require the taxpayer to provide this information.

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