Who Must File

• Indiana requires residents and nonresidents earning income within the state to file tax returns if their exemptions exceed their tax liabilities. Taxpayers receive a $1,000 exemption for each federal tax exemption claimed on their Internal Revenue Service tax returns. Additionally, taxpayers who are 65 and older receive a $1,000 allowance. Legally blind taxpayers receive a $1,000 allowance. Taxpayers who have $3,000 in allowances and exemptions must file taxes if their taxable income is over $3,000. Taxpayers who are not required to file returns must file a return to receive a refund.
  
  

Extensions of Time

• Taxpayers can request an Extension of Time to file their taxes by completing Form IT-9, Form IT-40 or Form IT-40PNR, Application for Automatic Extension of Time to File. Indiana's Department of Revenue grants an automatic 60-day extension to file tax returns. Taxpayers will receive automatic extensions only if they paid at least 90 percent of the previous year's income taxes or requested tax withholdings through their employers. Taxpayers must pay their estimated tax liabilities by the original deadline date or the Department of Revenue will assess interest and can assess penalties on late payments. Taxpayers who filed an extension of time with the Internal Revenue Service for a six-month extension automatically receive an extension and do not have to complete a separate Indiana request.
  
  

New Employer Credit

• For 2010, new businesses can take a new employer credit by applying for certification with the Indiana Economic Development Corporation. Individuals and corporations who contribute or donate money to state scholarship organizations can receive a school scholarship credit. In 2010, Indiana authorized local county governments to implement new income taxes or increase their existing income tax rates through October 31, 2010.
  
  

Conformity with Federal Tax Returns

• Taxpayers who file their federal taxes jointly must file their state taxes using the married filing jointly status. Taxpayers who are married but filed their federal taxes separately must file their Indiana state income taxes separately. Taxpayers who were legally separated in 2010, and lived apart, may file as "head of household" on their income tax returns.
  
  

Considerations

• Since tax laws can frequently change, you should not use this information as a substitute for legal or tax advice. Seek advice through a certified accountant or tax attorney licensed to practice law in your jurisdiction.