Tax Talk Blog

The Tax Talk blog is a weekly blog published each Wednesday by the Indiana Department of Revenue (DOR). During tax season blogs are posted on both Mondays and Wednesdays. The blog discusses tax tips, DOR programs, and helpful information for tax preparers.

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Tax Season Deadline is Tomorrow! Be Sure to File!

April 16, 2018

The 2018 tax season deadline is tomorrow, Tuesday, April 17. As the season comes to a close, be sure to file your individual income taxes to avoid fees or penalties. You still have time to file your state and federal taxes electronically or by mail. As long as the postmark date is April 17, your filing is considered on time.

Many Hoosiers choose to file electronically because it offers many convenient benefits:

Faster refunds – In most cases, electronically-submitted returns are processed faster than paper-filed returns. Please note that some tax returns may take longer to process due to factors like return errors or incomplete information. Additionally, the Indiana Department of Revenue screens every return in order to protect taxpayer IDs and refunds.

More secure – Fewer people see your personal information.

Get more or pay less – E-filing software may suggest credits and deductions about which you might not have known.

Better accuracy – Electronically-filed returns have a two percent error rate versus 20 percent for paper returns. Common math errors are avoided because the vendor software completes the calculations for you.

Convenience – You can file online (and use INfreefile) 24/7!

As you prepare to file, keep in mind that Indiana offers no-cost filing to qualifying Hoosiers! If your adjusted gross income was $64,000 or less in 2017, you may be one of the two million Hoosiers who qualify to file for free through INfreefile. This year’s vendors are OLT On-Line Taxes Inc., 1040NOW, H&R Block, TaxAct, TurboTax and FreeTaxUSA.

As always, our team is here to help! Contact the Indiana Department of Revenue at 317-232-2240 if you have any questions about your individual return or filing your taxes. You can also keep up with us on Facebook, Twitter, Instagram and Pinterest.

Earned Income Tax Credit…Do You Qualify?

April 11, 2018

Have you heard of the Earned Income Tax Credit (EITC), but don’t know what it is or if you qualify?

The EITC is a tax credit for low-income working families. It is referred to as “earned” because your income must come from being self-employed or working for a business. If you qualify for the EITC and your credit is greater than what you owe in taxes, you may end up receiving a refund while owing nothing in tax. Keep in mind, there is both a federal (IRS) EITC and state (Department of Revenue) Earned Income Credit (EIC). If you qualify for the federal EITC, you may qualify for Indiana’s EIC. However, you cannot claim the Indiana credit on your return without first claiming the federal credit.

Whether you are eligible to claim the credit on your federal and state returns is based in part on your income, investments and number of qualifying children. Some of the requirements include:

• You must have a Social Security number

• You cannot be a qualifying child of another person

• If you do not have any qualifying children, you must be between the ages of 25 and 65

Learn more about the state credit by checking out page 25 of Indiana’s IT-40 instruction booklet. You can also find more information about the federal credit at the IRS’ website. Don’t lose out on this valuable credit!