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Feb. 2, 2010
Individuals will begin filing their federal and state income tax returns in the coming weeks and if you are a planner, the Indiana Department of Revenue thought you would appreciate a preview of the 2010 individual tax changes.
Here are some of the changes to look for this year:
Redesign of tax forms and schedules
The 2009 tax forms and schedules look different. While the new layout offers more room to write in your information, a number of extra schedules will help you to identify all the add-backs, deductions, exemptions, credits, etc. Electronic filers may not notice the extra schedules because they are automatically completed for you. That said, those choosing to file paper returns will – each schedule on which you make an entry MUST be enclosed with your filing.
Speaking of electronic filing, more than two-thirds of Indiana’s three million tax filers do so electronically. Less wait-time for refunds, reduced errors, plus knowing all the new tax changes – no wonder Hoosiers chose to use this tax software. Whether using a paid preparer, buying tax software and trying it yourself, using the IRS’s Free-File program, and/or using Indiana’s free online tax filing program I-File, try electronic filing. Once you do you’ll never go back.
Earned income credit increase
The amount of Indiana’s earned income credit has increased from 6 percent to 9 percent.
Make sure to review the unemployment compensation information for both the add-back and the deduction when it comes time to file at www.in.gov/dor/4261.htm Again, using tax-preparation software (and electronically filing) will help you tackle these changes, and to ensure accurate reporting.
New nonresident military spouse earned income deduction
This is so new there isn’t any information about it in the income tax booklet! The Military Spouse Residency Relief Act of 2009 (signed into law in November of 2009) affects some spouses of military servicemembers. Basically, the spouse’s earned income may be exempt from state tax in the non-domiciliary state if:
If you are filing Form IT-40PNR and would like to see if you qualify for this new deduction you will need to complete Schedule IN-2058SP. For more information specific for military personnel and this deduction, visit www.in.gov/dor/3811.htm
For additional information about individual taxes you can also call (317) 232-2240 (press 2 for Spanish) from 8 a.m. to 4:30 p.m., Monday through Friday, or submit questions via e-mail to firstname.lastname@example.org
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