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.
- 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.
- 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.