sunday, august 23, 2015 2008 indiana department of revenue tax update

Wednesday, April 19, 2023

2008 Indiana Department of Revenue Tax Update


Electronic Filing

• Nearly 1.9 million filed state return using an electronic filing option in 2007

• 22-percent increase over the same time last year

• Each electronic return filed saves taxpayers 96 cents


I-FileFast, friendly and free

• Prepare and file Indiana tax returns using the Internet

• Available to taxpayers and tax professionals

• Uses a question/answer format

• www.ifile.in.gov


Collection Allowance Changes

Change effective for reporting periods after June 30, 2008

• 0.73 percent if the total sales tax collected was less than $60,000

• 0.53 percent if the total sales tax collected was between $60,000 and $600,000

• 0.26 percent if the sales tax collected was more than $600,000


Electronic Funds Transfer (EFT) Filers

• Effective January 1, 2009 EFT taxpayers are required to file monthly ST-103 forms rather than quarterly recaps

• Effective January 1, 2009 EFT withholding taxpayers are required to file monthly returns (WH-1) in addition to the monthly tax payment

• Annual WH-3 is still required

Withholding Tax

Effective Jan. 1, 2009 – County tax withheld must be broken down by county on WH-1 return.


Individual Income Tax

Renters Deduction - Increased from $2,500 to $3,000

Homeowners Deduction - 2008 taxpayers billed and paid property tax payable for 2007 may be eligible for up to $2,500 deduction

Taxpayers can also be eligible for 2008 deduction for taxes normally payable in 2008


Military Income

Military Service Deduction – The maximum military service income-tax deduction is increased from $2,000 to $5,000 per qualifying person


Military Income

National Guard and Reserve Component Member Deduction - For tax years beginning after Dec. 31, 2007

• For service as a result of involuntary orders• During the period the person is deployed or

mobilized for full time service• During the period for which the member’s National

Guard unit is federalized


Military Income

To take these deductions:

• IT-40 Schedule 1 “Other Deduction"

• IT-40PNR Schedule D


Military Income

Notes:

• An individual may be eligible for both deductions within a given year

• Both deductions when combined cannot be greater than the total taxable military income received during the year


Estimated Tax Carryover

IT-40 and IT-40PNR – overpayments can be carried over to next year’s estimated tax account

Beginning with 2008 tax returns, a remittance can no longer be added for purposed of increasing the amount to be carried over


Composite Filer Credit

S corps and partnership are required to include all individual nonresident shareholder/partners on a composite tax return at the entity level. Individual nonresidents included on the composite return may have other taxable Indiana-source income, requiring them to file the IT-40PNR. If so, the individual may be eligible for a composite filer credit.


County Tax

Counties can adopt or change local income tax rates through Dec. 31, 2008. Rates printed in booklets may have changed. For the current rates, visit:

www.in.gov/dor/3980.htm

county tax schedules have been modified

if Lake County adopts local tax, DOR must collect certain information for Lake Co distribution purposes


County Tax

New Schedule CT-40EZ


Processing Paper Returns

Include all information loose in the envelope• No Staples• No Paper Clips

1D Barcode will be on most forms/schedules

Barcode will identify:• tax year• form type• page


2009 Earned Income Credit

increases from 6 percent of the federal credit to 9 percent (effective Jan. 1, 2009)


IT-40ES

Effective Jan. 1, 2009you must distinguish between state AGI tax and LOIT on the IT-40 ES and ES-40


WH-4

Effective Jan.1, 2009

nonresident alien can claim only one exemption for purposes of figuring withholding tax


WH-4P

Effective Jan. 1, 2009

withholding of AGI from an annuity, pension or retirement plan must distinguish between AGI tax and LOIT


Personal Representative Information

• Taxpayers can use this area of the tax returns to authorize a personal representative

• Personal representative can be a friend, relative, etc.• Authorization can be revoked anytime with signed

statement

Required information:• name• Phone number and complete address


Paid Preparer Information

Required Information:

• Name/address of firm• IN-OPT on file with preparer if not filing

electronically• ID number• Telephone number• Complete address• Signature with date


Power of Attorney

• Individual representative name• address• telephone number

• Firm or Corporation• address• telephone number


Power of Attorney

The Department will accept a signed, faxed POA.• Fax POA to: (317) 615-2736

We will even accept an electronic image: • PDF, JPEG, GIF• Email the image to: [email protected]

Mail to: P.O. Box 7230 Indianapolis, IN 46207-7230

FAQs visit: www.in.gov/dor/3802.htm


Electronic Filing Mandate

if a professional preparer files more than 100 tax return in a calendar year for individuals, those returns must be filed in an electronic format


Electronic Filing Mandate

Effective Jan. 1 2011

A penalty for professional preparer of $50 is imposed for each return that is not filed electronically, $25,000 per calendar year.

Exception

Individuals may opt-out having their return filed electronically. Form IN-OPT must be signed and filed with preparer. Opt-out option must be indicated on the return.


CollegeChoice 529

New Plan Administrator• Account numbers will now be 11 digits beginning

with “61” or “62”

• For more information visit:

www.collegechoiceplan.com www.in.gov/dor/3650.htm

• To claim credit you must include the IN-529: www.in.gov/dor/3910.htm IB #98


Obsolete Schedules

forms used to report partnership and/or S corporation income (loss) no longer required

• Schedule 3• Schedule 3A• Schedule F• Schedule F1


Estimated Corporate Payments

For taxable years beginning after Dec. 15, 2007, a corporation or financial institution is not required to file quarterly estimated payment if its annual unpaid liability is less than $2,500. The previous limitation was $1,000.

Corporate Information

Qualified Patents Income Exemption

• Income tax bulletin #104

Captive Real Estate Investment Trust

• Effective Jan. 1, 2008 – Corps must add back

deductions for dividends paid to shareholders of a captive real estate investment trust for taxable years beginning after Dec. 31,2007


Other Indv/Corporate Credits

Indiana Research Expense Tax Credit Increasing

Ethanol Production Tax Credit to Include Credit for Cellulosic Ethanol

• Information Bulletin #93

Energy Star Heating and Cooling Equipment Tax Credit• Information Bulletin # 100


Other Indv/Corporate Credits

Rerefined Lubrication Oil Facility Credit Repealed• Effective March 20, 2007 – credit is

repealed

Coal Gasification Technology Investment Tax Credit• Information Bulletin #99

Media Production Credit• Commissioner’s Directive #36

Ethanol Production Credit• Information Bulletin #93


Additional Highlights

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INtax

• Instant access to file and pay business taxes online

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• www.intax.in.gov



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sunday, august 23, 2015 2008 indiana department of revenue tax update

Documents

tax professionals

tax years

deduction taxpayers

withholding tax effective

total sales tax

federalized slide

cents slide

county tax withheld