Indiana State Income Tax - Tax Year 2012
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Contents
Contents
1.
Indiana Income Tax Table
| Tax Bracket (Single) [2] | Tax Bracket (Couple) [3] | Marginal Tax Rate |
| $0+ | $0+ | 3.40% |
Note: Indiana's income tax has a single flat tax rate for all income.
Learn how marginal tax brackets work 
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Indiana Income Tax Calculator
3.
The Indiana Income Tax
Indiana has a flat income tax rate of 3.40% of gross income, unlike the federal income tax which uses tax brackets based on marginal income. Indiana's maximum marginal income tax rate is the 2nd lowest in the United States, ranking directly below Michigan's 4.35%.
In Indiana, all counties except Lake County collect a local income tax in addition to the state and federal income taxes you already pay. The average income tax rate for counties and large municipalities is 1.16% (according to the Tax Foundation, weighted by income).
You are responsible for paying the local income tax to the county in which you work in addition to your federal and Indiana income tax returns - keep in mind that different income tax rates may apply to residents and nonresidents of the county. You can access a list of all Indiana counties and their income tax rates here.
Using the Indiana ePay system, you can now make all of your tax payments (including estimated tax payments if required), online. With Department of Revenue approval, you can also set up a tax payment plan or file a payment under a deadline extension through the ePay system. If you have questions about paying your Indiana income tax, contact the Department of Revenue's hotline at (317) 232-2240. There are -38 days left until Tax Day, on April 15th 2013.
4.
Indiana Tax Deductions
Income tax deductions are expenses that can be deducted from your gross pre-tax income. Using deductions is an excellent way to reduce your Indiana income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Indiana tax returns. For details on specific deductions available in Indiana, see the list of Indiana income tax deductions.
4.1 - Indiana Standard Deduction
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Unlike many other states, Indiana has no standard deduction. Certain itemized deductions (including property tax, qualified charitable contributions, etc) may be allowed depending on the income level and filing type of the taxpayer. Keep in mind that not all deductions allowed on your federal income tax return are necessarily going to be allowed on your Indiana income tax return.
4.2 - Indiana Personal Exemptions
- Indiana's personal income tax exemptions include a personal exemption of $1,000.00. You can deduct one single exemption from your gross income if you are responsible for supporting yourself financially.
4.3 - Indiana Dependent Deduction
- Indiana has a dependent exemption of $1,500.00. You may claim one dependent examption for each of the children, relatives, or others who live with and are supported by you as described § 152 of the IRC (Internal Revenue Code).
4.4 - Indiana Itemized Deductions
- Unlike the Federal income tax, the Indiana income tax does not allow itemized deductions. You may claim the Indiana standard deduction if applicable, and specific deductions may be available to Indiana taxpayers as limited deductions or tax credits.
5.
Indiana Income Tax Forms
Tax-Rates.org provides easy access to five of the most commonly used Indiana income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Indiana tax forms library or the Department of Revenue 's tax forms page.
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Form CT-40 - County Tax ScheduleIf you are an Indiana resident, use the County tax Schedule to determine your local and county income tax.
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Form IT-40 - Individual Income Tax ReturnAll Indiana residents who earned income in the last year must file Form IT-40 with the Indiana Department of Revenue. If you have a simple tax return, you can file form IT-40 EZ instead.
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Form IT-40 EZ - Simple Income Tax ReturnIf you have a simple state tax return, you can file an IT-40 EZ form instead of the regular Form IT-40.
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Income Tax Instructions - Indiana Income Tax Instruction BookletThis booklet includes instructions for filling out and filing your IT-40 income tax return.
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Schedule 2 - Income Tax DeductionsFile Schedule 2 with your IT-40 tax return to itemize your income tax deductions.
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Printable Indiana Tax Table & Tax Reference
Tax-Rates.org provides a printable Indiana datasheet including an income tax table, a list of Indiana tax deductions, important URLs and addresses, and more. This document is in PDF format.
If you are not a resident of Indiana, have a complicated tax return, or have other specialized circumstances you may need to download additional tax forms from the Department of Revenue website. You can find all of Indiana's 2013 income tax forms on the Department of Revenue income tax forms page 
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6.
How To File Your Indiana Income Tax Return
Once you've filled out your Indiana income tax return, you have several options for filing and paying your income tax. You can mail your return to the Department of Revenue at the correct address below, and include your payment by check or money order. You may also electronically file your Indiana tax return through a tax preparer or using online tax software, and pay your taxes instantly using direct debit or a credit card (an additional credit card fee may apply).
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Where To Send Your Indiana Tax Return
If you filled out physical tax return forms, mail your completed Indiana income tax return to the Indiana Department of Revenue no later then April 15th. Please be sure to send your completed tax forms to the correct address for your filing type.
Income Tax Returns (With Payment) Indiana Department of Revenue P.O. Box 7224 Indianapolis, IN 46207-7224 |
Income Tax Returns (Without Payment) Indiana Department of Revenue P.O. Box 40 Indianapolis, IN 46206-0040 |
8.
e-Filing: Submit Your Indiana Tax Return Online
You can save time and money by electronically filing your Indiana income tax directly with the Department of Revenue . Benefits of e-Filing your Indiana tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
Indiana's INfreefile program provides free eFiling software to over one million Indiana taxpayers every year. If you have an Adjusted Gross Income of $57,000 or less, you probably qualify for one or more of Indiana's eFile partners' offers, from companies including Turbotax and H&R Block. If you don't qualify for INfreefile, you can still eFile your return using paid software or through your normal tax preparer.
Indiana recommends that you eFile your return for several reasons - not only does it decrease paperwork and reduce arithmetic errors, but you'll also recieve your Indiana income tax refund check faster. If you eFile, all of your paperwork (inluding your W2 and 1099 forms) and even your payments (via direct debit, credit card, or echeck) can be handled online.
To e-file your Indiana and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies.
The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
9.
Getting Your Indiana Tax Refund
If your state tax witholdings are greater then the amount of income tax you owe the state of Indiana, you will receive an income tax refund check from the government to make up the difference.
It should take one to three weeks for your refund check to be processed after your income tax return is recieved. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible.
Once you've filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Indiana tax refund, you can visit the Indiana Department of Revenue Income Tax Refund page.
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10.
References
- Our state ranking and income tax figures are based on a family of four (married parents with two children) earning the national median household income of $50,000 per year. Deductions and personal exemptions are taken into account, but some state-specific deductions and tax credit programs may not be accounted for.
- Before the official 2013 Indiana income tax rates are released, provisional 2013 tax rates are based on Indiana's 2012 income tax brackets.
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The 2013 state personal income tax brackets are updated from the Indiana Department of Revenue and Tax Foundation data.
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Indiana tax forms are sourced from the Indiana Department of Revenue income tax forms page, and are updated on a yearly basis. Please make sure the Indiana forms you are using are up-to-date.
