Dependent Child Exemption Increase
If a taxpayer is claiming a child as a dependent for the first taxable year in which the additional child exemption is allowed, the taxpayer is now permitted to claim an amount of $3,000, instead of $1,500. The child will not be considered to be claimed for the first time if the previous $1,500 additional child exemption was claimed by someone else, or if the $1,500 additional child exemption was claimed or claimable when the child was living outside of Indiana. The taxpayer must indicate the child is being claimed as a dependent for the first time on Schedule IN-DEP. See Income Tax Information Bulletin #117 for more information.
Indiana deductions are used to reduce the amount of taxable income. First, check the list below to see if you're eligible to claim any of the deductions. If you are, you'll claim them when you file your annual Indiana income tax return on Form IT-40 or IT-40PNR.
Important: Some deductions available for earlier tax years may not be listed below. Find information on prior tax year deductions on their respective webpages.
Updated for 2023
- Broadband Expansion Grants Deduction
- Career Scholarship Account Deduction
- Civil Service Annuity Deduction
- Disability Retirement Deduction
- Employer Student Loan Payment Interest Deduction
- Enterprise Zone Employee Deduction
- Health Care Sharing Ministry Deduction
- Human Services Tax Deduction
- Indiana Education Scholarship Account Deduction
- Indiana Enrichment Scholarship Account Deduction
- Indiana Net Operation Loss Deduction
- Indiana Partnership Long Term Care Policy Premiums Deduction
- Interest from U.S. Government Obligations Deduction
- Military Retirement Income and/or Survivor’s Benefits Deduction
- Military Service Deduction
- National Guard and Reserve Component Members Deduction
- 30 Days or Less Nonresident Employee Wage Deduction
- Olympic/Paralympic Medal Winners Deductions
- Private School/Homeschool Deduction
- Qualified Patents Income Exemption Deduction
- Railroad Unemployment and Sickness Benefits Deduction
- Recovery of Itemized Deductions, Including State Tax Refund
- Renter’s Deduction
- Repayment of Previously Taxed Income Deduction
- Residential Homeowner’s Property Tax Deduction
- Small Employer Health Insurance Premium Deduction
- Social Security and Railroad Retirement Benefits
- Specified Research and Experimental Expenses Deduction
- Unemployment Compensation Deduction