Indiana Indiana Apportionment Schedule for Nonresident Individuals

Indiana Apportionment Schedule for Nonresident Individuals
Form IT-40PNRA
Indiana Department of Revenue

Schedule

IT-40PNRA

Indiana Apportioned Income
for Nonresident Individuals

State Form 49059
(R19 / 9-21)

Tax
Year

Enclosure
Sequence No. 17

Prepare a separate schedule IT-40PNRA for each entity with multistate business activity.
File with Form IT-40PNR
Your first name, middle initial and last name

Social Security Number

Name of Business

FEIN or SSN (if different from above)

Part 1 Taxpayer Information

Check box where income was reported on Federal Return (entries must be included in the amount reported on lines 7A, 9A
and 12a through 16a of Schedule A of Form IT-40PNR):	
Federal Schedule C or CEZ	
Federal Schedule E
	
Federal Schedule F		
Federal Form 4797

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Part 2 Adjusted Gross Business Income Subject to Apportionment

Round all entries

1.	 Enter the net federal income (loss) reported for the business activity _________________	1	00
2.	 Enter an amount for each deduction (or income item) used in arriving at Federal Net Income:
a) Bonus depreciation / other: see instructions______________	2a	
00
b) U.S. Gov’t bond interest and other nontaxables___________	2b	00

00
4.	 Total income, as modified (add lines 1 and 3) ___________________________________	4	00
3.	 Net modifications: subtract 2b from 2a.________________________________________	3	

Part 3 Apportioned Income for Nonresident Individuals for the 2021 tax year

Use this apportionment formula to apportion income received by the business from sources both within and outside
Indiana. Note: Interstate transportation entities must use Schedule E-7, available at www.in.gov/dor/7102.htm
Column A

Column B

Total within Indiana

1.	 Receipts Factor - Enter total
business gross receipts (sales)___ 	1a	

Total within and outside Indiana

00	 1b	

Column C

Indiana percentage

00

2.	 Divide line 1a by line 1b, enter result here (or enter percent from Interstate Transportation
Schedule E-7 )____________________________________________________________________ 	2c		

.

%

3.	 Multiply total income amount in Part 2, line 4 by percent in Part 3, line 2c ______________	3	00
	
	

Combine Indiana Apportioned Income on line 3 with amounts from other IT-40PNRA schedules, if any. Carry grand
total to line 19B of Form IT-40PNR Schedule A.

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Instructions for Completing Schedule IT-40PNRA
Indiana Apportionment Income for Nonresident Individuals
Who Should File
A nonresident person or proprietor, including an entertainer,
independent contractor and other unincorporated
individuals, who derive business income from Indiana
sources is subject to Indiana adjusted gross income tax
on that income. On the U.S. income tax return this type
of income is reported on Form 1040/1040-SR Schedules
C, C-EZ, E, F, and 4797 (disposition of business property
used both within and outside Indiana). Nonresidents with
adjusted gross income derived from Indiana sources must
file Form IT-40PNR, Indiana Part-Year or Nonresident
Individual Income Tax Return. If the nonresident is
conducting the trade or business both within and outside
Indiana, this income must be apportioned by completing
this schedule. Part 3 outlines Indiana’s formula for
apportioning business income. Using this schedule will
determine the taxable portion of business income to carry
over to line 19B of Form IT-40PNR, Schedule A.
Note: If Indiana and your resident state of domicile tax
the same business income, an offsetting credit may
be available on the Indiana return based on existing
agreements Indiana may have with your state. See
instructions for credits for taxes paid to other states in the
individual income tax return instruction booklet.
How to Report Business Income
Business income means adjusted gross income from
transactions and activity in the regular course of taxpayers’
trade or business. Business income would include income
from tangible property if the acquisition, management,
or dispositions of the property are integral parts of the
taxpayer’s regular trade or business.
Adjusted gross income derived from sources within Indiana
includes: (1) income from real or tangible personal property
in this state; (2) income from doing business in this state;
(3) income from a trade or profession conducted in this
state; (4) compensation for labor or services rendered
within this state; and (5) income from stocks, bonds, notes,
bank deposits, patents, copyrights, secret processes and
formulas, good will, trademarks, trade brands, franchises,
and other intangible personal property having a location
in Indiana. If income is derived solely from an Indiana
business or profession or is totally derived from outside
Indiana, it must be assigned (allocated) to that source
and reported on lines 7, 9 and 12 through 16 on Form IT40PNR Schedule A. Only the apportioned business income
from this schedule is to be reported on line 19 on Form
IT-40PNR Schedule A.

Caution: Multistate business income received from an
S corporation, limited liability company, partnership,
limited liability partnership, trust and estate is separately
apportioned at the entity’s level. Nonresidents must report
their distributive shares of income (including modifications)
as apportioned by those entities, on lines 12B through 15B
on Form IT-40PNR Schedule A.
Part 1 Complete all necessary boxes to identify source and
type of business income received.
Part 2
Line 2 – a) A listing of required Indiana add-backs can be
found in the Form IT-40PNR instruction booklet
(www.in.gov/dor/7101.htm). Look for the section titled
Schedule B: Add-Backs. Combine the amounts of any of
these add-backs associated with this business income
(loss); enter the total on this line. DO NOT also enter these
add-backs on Indiana’s Schedule B; b) Enter interest
from certain obligations of the United States Government
included as income on the federal return (refer to Income
Tax Information Bulletin #19 for a listing of eligible items),
and other nontaxable income (such as Indiana lottery prize
receipts authorized by I.C. 4-30).
Part 3
Indiana generally follows the Uniform Division of Income
for Tax Purposes Act for attributing income. Nonresidents
who derive income from a business which operates both
within and outside the state of Indiana must apportion the
business income. This is accomplished by completing
Part 3.
Note: Nonbusiness income is all income other than
business income. It is allocable income and not part of a
business’s gross receipts in the apportionment formula.
Line 3 – Multiply your total modified net business income
in Part 2, line 4 by the Indiana apportionment percentage
on line 2c. Enter the result here and on line 19B on Form
IT-40PNR, Schedule A.
Note: If you are filing a return for a year other than the
current year, get the Schedule IT-40PNRA for that specific
year at www.in.gov/dor/3488.htm.

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