Feb. 13—Senior taxpayers may be able to reduce their amount of taxable income by reviewing the list of Indiana deductions from income to see if they are eligible to claim them: Civil Service Annuity deduction; Disability Retirement deduction; Human Services tax deduction for Medicaid recipients staying at a care facility or hospital; Indiana partnership long-term care policy premiums deduction; Military Retirement Income and/or Survivor's Benefits deduction; Social Security and Railroad Retirement benefits
Seniors may be entitled to the Unified tax credit for the elderly. Most can claim this by filing taxes on Form IT-40 or IT-40 PNR. Low-income seniors may be eligible to file the shorter Form SC-40 to claim these refunds if they qualify. Indiana residents who have a total value of exemptions that exceed federal gross income before deductions do not need to file an Indiana income tax return. More information is available on DOR's Who Must File a Tax Return webpage.
Any Hoosier who spends a significant amount of time escaping winter in a different state (or country) is considered a full-year resident and does not have to be present in Indiana the whole year. If you have any questions, review residency definitions on DOR's page, and consulting a tax professional can help.
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