sunday, august 23, 2015 2008 indiana department of revenue tax update
TRANSCRIPT
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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.
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
Military Income
Military Service Deduction – The maximum military service income-tax deduction is increased from $2,000 to $5,000 per qualifying person
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
Military Income
To take these deductions:
• IT-40 Schedule 1 “Other Deduction"
• IT-40PNR Schedule D
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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.
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
2009 Earned Income Credit
increases from 6 percent of the federal credit to 9 percent (effective Jan. 1, 2009)
Wednesday, April 19, 2023
IT-40ES
Effective Jan. 1, 2009you must distinguish between state AGI tax and LOIT on the IT-40 ES and ES-40
Wednesday, April 19, 2023
WH-4
Effective Jan.1, 2009
nonresident alien can claim only one exemption for purposes of figuring withholding tax
Wednesday, April 19, 2023
WH-4P
Effective Jan. 1, 2009
withholding of AGI from an annuity, pension or retirement plan must distinguish between AGI tax and LOIT
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
Power of Attorney
• Individual representative name• address• telephone number
• Firm or Corporation• address• telephone number
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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.
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
Obsolete Schedules
forms used to report partnership and/or S corporation income (loss) no longer required
• Schedule 3• Schedule 3A• Schedule F• Schedule F1
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
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
Wednesday, April 19, 2023
Additional Highlights
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Wednesday, April 19, 2023
Additional Highlights
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• www.intax.in.gov
Wednesday, April 19, 2023
Additional Highlights
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