Tax Terms Defined

Adjusted Gross Income (AGI) – The amount of income to be taxed.

Deduction – Lowers the amount of income to be taxed. Few students qualify for deductions.*
* See individual deductions.

Dependent – In general, you are a dependent of your parent(s) or guardian(s) if they:

  • Financially supported you for more than six months and;
  • You are under the age of 19 at the end of the tax year or;
  • You are under the age of 24 at the end of the tax year and are a full-time student.

Filing due date – Your Indiana individual income taxes must be filed by April 15.

Filing status – The state of Indiana recognizes three filing statuses:

  • Full-year resident – You maintained a legal place of residence in Indiana from Jan. 1 through Dec. 31. You do not have to be physically present in Indiana the entire year to be considered a full-year resident.
    Example: Brittany is a student at Illinois State University. During the school year Brittany lives in Illinois. When school is out she lives with her parents in Fort Wayne, Ind. Therefore, Brittany is a full-year Indiana resident.
    Use form IT-40.
  • Part-year resident – You established Indiana residency during the year.
    Example: During the year Logan moved to Indiana from Minnesota. He registered his car in Indiana, got an Indiana driver’s license and registered to vote in Indiana. Therefore, Logan is a part-year Indiana resident.
    Use form IT-40 PNR.
  • Full-year nonresident – You are a full-year resident of a state (or country) other than Indiana.
    Example: Sean, who is from Missouri, attends college in Indiana (and pays nonresident tuition). Sean is a full-year nonresident, even though he lives in Indiana for nine months of the year.
    Use forms IT-40 PNR or IT-40 RNR.

Refund – A return or repayment of overpaid taxes.

Residency – Your legal place of residence from Jan. 1 through Dec. 31. See filing status to determine the form you need to use when filing a paper return.

W-2 – A form supplied by employer(s) no later than Jan. 31 stating the wages earned and taxes paid.