Simplified Form for Low Income Seniors
Indiana has a Unified Tax Credit for the Elderly. If you meet the eligibility requirements, you can claim this credit on your Form IT-40 or Form IT-40PNR income tax return.
However, if you aren't required to file an income tax return because your exemptions are more than your federal adjusted gross income, there is a Form SC-40 you can file to claim a refund of your Unified Tax Credit for the Elderly.
Here's how to figure your exemptions:
- Allow $1,000 for each exemption claimed on your federal tax return;
- Take an additional $1,500 for certain dependent children (see IT-40 instruction booklet for details);
- $1,000 for each individual age 65 or older;
- $1,000 for each legally blind individual, and
- An additional $500 for each individual age 65 or older who has a federal adjusted gross income of less than $40,000.
Example: Chuck and Alice are both 80 years old, and their federal adjusted gross income is $4,300. Their exemption total is $5,000, which includes:
- $2,000 for each exemption claimed on their federal income tax return (2 x $1,000), plus
- $2,000 since both are over age 65 (2 x $1,000), plus
- $1,000, since their federal adjusted gross income is less than $40,000 (2 x $500).
Since their $5,000 Indiana exemption total is more than their $4,300 federal adjusted gross income, they aren't required to file an Indiana income tax return (Form IT-40). They should file the simplified Form SC-40 to claim a refund of their Unified Tax Credit for the Elderly.