Indiana Current Year Financial Institution Tax Forms & Instruction Booklet

Current Year Financial Institution Tax Forms & Instruction Booklet
FIT-20 Financial Institution Tax Booklet
INDIANA

2 0 2 3

FIT-20

Financial Institution Tax Booklet

This booklet contains instructions for preparing Indiana financial institution returns
for tax year 2023 and for fiscal years beginning in 2023 and ending in 2024.

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FIT-20 Financial Institution Booklet 2023

SP 244
(R22 / 12-23)

INDIANA FIT-20
Financial Institution Tax Booklet Year 2023
Contents

What’s New for 2023...............................................................................................................................................................4
General Information...............................................................................................................................................................4
General Filing Requirements for FIT-20 Forms and Schedules........................................................................................4
Instructions for Completing Form FIT-20...........................................................................................................................7
Certification of Signatures and Authorization Section ...................................................................................................15
Mailing Options.....................................................................................................................................................................16
Other Tax Liability Credits Available to Financial Institutions.......................................................................................16
Instructions for FIT-20 Schedule E-U Apportionment of Receipts to Indiana............................................................19
Instructions for Filing a Combined Return: Attributing Receipts of a Taxpayer Filing a Combined Return..........20
Instructions for Schedule FIT-NRTC – Nonresident Tax Credit....................................................................................20
Instructions for Form FT-ES ...............................................................................................................................................21
Instructions for Schedule FIT-20NOL – Computation of Indiana Member’s Net Operating Loss Deduction.............. 21
Additional Information........................................................................................................................................................23

FIT-20 Financial Institution Booklet 2023

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INTIME e-Services Portal Available

INTIME, DOR’s e-services portal, available at intime.dor.in.gov,
provides the following functionalities for FIT-20 customers:
•	 Make payments using a bank account or credit card
•	 View and respond to correspondence from DOR
•	 Request and print return transcripts on-demand
•	 Electronic delivery of correspondence
•	 Online customer service support through secure messaging

Increased Online Support for Tax Preparers

In addition to the functionality listed above, INTIME provides
increased access and functionality for tax preparers. INTIME
provides the following functionality for tax preparers:
•	 Gain access to view and manage multiple customers under
one login
•	 Ability to file returns, make payments, and view file and pay
history for clients
•	 Request electronic power of attorney (ePOA) authorization to
view customer accounts
•	 View and respond to correspondence for clients
We strongly encourage all taxpayers to make payments and file
returns electronically whenever possible. INTIME also allows
customers to make estimated payments electronically with just a
few clicks.

What’s New for 2023
References to the Internal Revenue Code

The definition of adjusted gross income (AGI) is updated to
correspond to the federal definition of adjusted gross income
contained in the Internal Revenue Code (IRC). Any reference to
the IRC and subsequent regulations means the Internal Revenue
Code of 1986, as amended and in effect on January 1, 2023. For a
complete summary of new legislation regarding taxation, please see
the Synopsis of 2023 Legislation Affecting the Indiana Department of
Revenue at www.in.gov/dor/files/2023-legislative-synopsis.pdf.

Add-Backs
•	

A new add-back (154) is available for specified research and
experimental expenses required to be amortized for federal
income tax purposes. See page 9 for more information.

Credits
•	

A new credit (874) is available for qualified investments at a
mine reclamation site. See page 18 for more information.

Deductions
•	

•	

A new deduction (639) is available to allow the deduction
for the portion of small employer health insurance premiums
that is disallowed for federal purposes as a result of claiming
the credit under IRC section 45R. See page 10 for more
information.
A new deduction (641) is available to permit a current-year
deduction for specified research and experimental expenses
otherwise required to be amortized for federal tax purposes.
See page 10 for more information.

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FIT-20 Financial Institution Booklet 2023

General Information
Annual Public Hearing

In accordance with the Indiana Taxpayer Bill of Rights, the
Indiana Department of Revenue will conduct an annual public
hearing in Indianapolis in June of 2024. Event details will be listed
at www.in.gov/dor/news-media-and-publications/dor-publicevents/annual-public-hearings. Please come and share feedback
or comments about how DOR can better administer Indiana tax
laws. If you cannot attend, please submit feedback or comments
in writing to Indiana Department of Revenue, Commissioner’s
Office MS# 101, 100 N. Senate Ave., Indianapolis, IN 46204.
Our homepage provides access to forms, information bulletins
and directives, tax publications, email, and various filing options.
Visit www.in.gov/dor.

General Filing Requirements for FIT-20
Forms and Schedules

Copies of pages 1 through 5 of the corporation’s federal income tax
return must be enclosed with Form FIT-20 along with Schedule M-3
as well as any extension of time to file form(s). This requirement is
made under the authority of Indiana Code (IC) 6-5.5-6-5.

Extension of Time to File

All Indiana financial institutions tax return due dates are treated
the same as extensions granted because of a federal income tax
due date extension.

Who Must File Form FIT-20

IC 6-5.5-2-1 imposes a financial institution tax on the adjusted
gross income of any corporation transacting the business of a
financial institution, including a holding company, a regulated
financial corporation, a subsidiary of a holding company or
regulated financial corporation, or any other corporation carrying
on the business of a financial institution. Any taxpayer who is
subject to tax under IC 6-5.5 is exempt from Indiana’s adjusted
gross income tax.
The financial institution tax extends to financial institutions and
to all other corporate entities when 80% or more of its gross
income is derived from activities that constitute the business
of a financial institution. The business of a financial institution
is defined as activities authorized by the federal reserve board; the
making, acquiring, selling, or servicing of loans or extensions of
credit; acting as an agent, a broker, or an advisor in connection
with leasing real and personal property that is the economic
equivalent of an extension of credit; or operating a credit card,
debit card, or charge card business.
File the general Indiana corporate adjusted gross income
tax return, Form IT-20, if for the taxable year the 80%
threshold of gross income derived from activities that
constitute the business of a financial institution is not met.
This form is available online at www.in.gov/dor/tax-forms/2023corporatepartnership-income-tax-forms.

Due Date

•	
•	

A taxpayer is presumed to “regularly” engage in the above
activities when its assets attributable to Indiana are equal to at
least $5 million or it has 20 or more Indiana customers.

Maintaining or defending an action or a suit;
Filing, modifying, renewing, extending, or transferring a
mortgage, deed of trust, or security interest;
•	 Acquiring, foreclosing, or otherwise conveying property in
Indiana as a result of a default under the terms of a mortgage,
deed of trust, or security interest relating to the property;
•	 Selling tangible personal property, if taxation under this law
is precluded because of P.L. 86-272;
•	 Owning an interest in the following types of property
even though activities are conducted in Indiana that are
reasonably required to evaluate and complete the acquisition
or disposition of the property, the servicing of the property,
or the income from the property, or the acquisition or
liquidation of collateral relating to the property;
•	 An interest in a real estate mortgage investment conduit, a
real estate investment trust, or a regulated investment
company;
•	 An interest in a loan-backed security representing ownership
or participation in a pool of promissory notes or certificates
of interest providing for payments in relation to payments
or reasonable projections of payments on the notes or
certificates;
•	 An interest in a loan or other asset where the interest is
attributed to a consumer loan, commercial loan, or secured
commercial loan and where the payment obligations were
solicited and entered into by a person who is independent
and not acting on behalf of the owner;
•	 An interest in the right to service or collect income from a
loan or other asset where interest on the loan is attributed
as a loan described above and the payment obligations were
solicited and entered into by a person who is independent
and not acting on behalf of the owner; or
•	 An amount held in an escrow or trust account with respect to
the property described previously.
Acting:
•	 As an executor of an estate;
•	 As a trustee of a benefit plan;
•	 As a trustee of an employee’s pension, profit sharing, or other
retirement plan;
•	 As a trustee of a testamentary or inter vivos trust or corporate
indenture; or
•	 In any other fiduciary capacity, including holding title to real
property in Indiana.

Exempt Entities

Method of Reporting

The return due date is the 15th day of the 5th month after the end
of the tax year.

Apportionment of Adjusted Gross Income

The financial institution tax is imposed on the apportioned
Indiana income of financial institutions. The law employs a
single-factor receipts formula to determine the percentage of the
taxpayer’s income subject to the tax. The single-factor formula is
derived by dividing the gross receipts attributable to transacting
business in Indiana by the total receipts from transacting business
in all taxing jurisdictions.

Nexus Rules

The law is based on the ability of a corporation under modern
technology to transact the business of a financial institution in
Indiana, regardless of the principal location of its offices and
employees.
A taxpayer is transacting business in Indiana for purposes of the
FIT when it satisfies any of the following eight tests:
•	 Maintains an office in Indiana;
•	 Has an employee, a representative, or an independent
contractor conducting business in Indiana;
•	 Regularly sells products or services of any kind or nature to
customers in Indiana who receive the product or service in
Indiana;
•	 Regularly solicits business from potential customers in
Indiana;
•	 Regularly performs services outside Indiana that are
consumed within Indiana;
•	 Regularly engages in transactions with customers in Indiana
involving intangible property, including loans, but not
property described in IC 6-5.5-3-8(5), and resulting in
receipts flowing to the taxpayer from within Indiana;
•	 Owns or leases tangible personal or real property located in
Indiana; or
•	 Regularly solicits and receives deposits from customers in
Indiana.

Four specific types of organizations are exempted from the FIT:
•	 Insurance companies otherwise subject to tax under
IC 6-3, IC 27-1-2-2.3, or IC 27-1-18-2;
•	 International banking facilities;
•	 S corporations exempt from income tax under IRC Section
1363; and
•	 Nonprofit corporations unless the nonprofit corporation
has unrelated business income (with the exception of state
chartered credit unions). Federal law prohibits state taxation
of federally chartered credit unions.

Exempt Transactions

A taxpayer is not considered to be transacting business in Indiana
if the ONLY activities of the taxpayer in Indiana are in connection
with any of the following:

A taxpayer is allowed to file a separate return only in those
instances where the taxpayer is not a member of a unitary group.
Members of a unitary group must file collectively on one combined
return. No provision is made for filing consolidated returns.
If the taxpayer is a member of a unitary group, combined
reporting is mandatory. However, if the taxpayer determines that
its Indiana income is not accurately reflected by the filing of a
combined return, the taxpayer can petition DOR. Such petition is
subject to approval by DOR. The petition must include the name
and federal employer identification number of each member of
the group petitioning for an alternative method. Each member
must include its justification for the alternative method.

FIT-20 Financial Institution Booklet 2023

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Petitions may be sent to:
Indiana Department of Revenue
Tax Policy Division
100 N Senate Ave, N248, MS 102
Indianapolis, IN 46204-2253

A partnership is not required to withhold FIT on behalf of its
resident corporate taxpayers as defined by IC 6-5.5-1-13. The resident
corporate partners are responsible for paying the relevant FIT or
adjusted gross income tax themselves. See the Instructions for Form
IT-65 for further information regarding withholding requirements.

Once the petition is approved, the taxpayer will indicate on the
annual return that the return is a separate return made by a
member of a unitary group. Attach DOR’s letter granting petition
to the annual return filing.

Example. A bank in Maine and a bank in Indiana form a
partnership to make loans to Indiana borrowers. The only Indiana
activity of the Maine bank is its involvement in the partnership.
The partnership is required to withhold FIT on the Maine bank’s
share of the partnership income.

Members of a Unitary Group

The combined return shall include the adjusted gross income of
all members of the unitary group that are transacting business
wholly or partially within Indiana. The statute provides exclusion
for the income of corporations or other entities organized in
foreign countries, except a federal or state branch of a foreign
bank or its subsidiary that transacts business in Indiana.

United States Government Obligations

“Unitary business” means business activities or operations that
are of mutual benefit, dependent upon or contributory to one
another, individually or as a group, in transacting the business
of a financial institution. The term can be applied within a
single entity or between multiple entities and without regard to
whether each entity is a corporation, partnership, or trust. Unity
is presumed if there is unity of ownership, operation, or use as
evidenced by centralized purchasing, advertising, accounting, or
other controlled interaction among entities that are members of
the unitary group as defined in IC 6-5.5-1-18(a).

Extensions for Filing

Unity of ownership exists for a corporation if it is a member of a
group of two or more business entities, 50% of whose voting stock
is owned by a common owner or owners or by one or more of the
member corporations of the group.
The taxpayer designated as the reporting member of a unitary
group shall file a combined return that includes all operations
of the unitary business. List members included in the combined
return by completing FIT-20 Schedule H. See Instructions for
Filing a Combined Return beginning on page 19.

Partnerships

Partnerships and trusts as entities are not subject to FIT.
Partnerships conducting the business of a financial institution are
required to file the appropriate informational return, Form IT-65.
Trusts conducting the business of a financial institution in Indiana
are required to file the appropriate tax returns.
If the entity is a partnership and has nonresident corporate
partners that are themselves conducting the business of a
financial institution, the partnership is required to withhold FIT
on behalf of the non-resident corporate partner on the nonresident partner’s share of the partnership income. If the nonresident corporate partner is not otherwise itself conducting the
business of a financial institution, the partnership is required to
withhold Indiana adjusted gross income tax on the non-resident
partner’s share of the partnership income. The apportionable
income attributable to the partner is the same percentage as its
distributive share of the partnership’s income.
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FIT-20 Financial Institution Booklet 2023

Although interest earned on U.S. obligations is not subject to
income taxation, it is not preempted by federal law from being
included in the tax base of a franchise tax. Therefore, interest
from U.S. obligations is not to be subtracted from federal taxable
income in determining the adjusted gross income for the FIT.
DOR accepts the federal extension of time application (Form
7004) or the federal electronic extension. If the taxpayer has
one, there is no need to contact DOR prior to filing the annual
return. Returns postmarked within one month after the last date
indicated on the federal extension will be considered timely filed.
If the taxpayer does not need a federal extension of time but needs
one for filing a state return, an extension request and prepayment
of 90% can be submitted via INTIME, DOR’s e-services portal
at intime.dor.in.gov, or by submitting a letter requesting an
extension prior to the annual return’s due date.
To request an Indiana extension of time to file by letter, contact:
Indiana Department of Revenue
Corporate Income Tax
Tax Administration
P.O. Box 7206
Indianapolis, IN 46207-7206
If there is a valid extension of time or a federal electronic extension to
file, check Yes on line V on the front of the return. If applicable, enclose
a copy of the federal extension of time when filing the state return.
An extension of time granted under IC 6-8.1-6-1 waives the late
payment penalty for the extension period on the balance of tax
due provided at least 90% of the tax due is paid by the original due
date and the remaining balance, plus interest, is paid in full by the
extended due date. Use DOR’s e-services portal, INTIME, at intime.
dor.in.gov to make an extension payment for the taxable year.
If a payment is not submitted electronically, it must be made with
the financial institution preprinted extension form included with
the estimated coupon packet Form FT-ES. This payment will be
processed as a fifth estimated payment.
Note. Any tax paid after the original due date must include interest.
Interest on the balance of tax due must be included with the return
when it is filed. Interest is computed from the original due date
until the date of payment. In October of each year, DOR establishes
the interest rate for the next calendar year. See Departmental Notice
#3 at www.in.gov/dor/files/reference/dn03.pdf for interest rates.

Amended Returns

A taxpayer must notify DOR within 180 days of final alterations
or modifications to its federal income tax return (federal
adjustment, RAR, etc.) by filing an amended Form FIT-20.
To amend a previously filed Form FIT-20, file a corrected copy of
the original form. Check the box at the top of the form for filing
an amended return.
To claim a refund of an overpayment, file the return within three
years from the latter of the date of the overpayment or the due date
of the return. IC 6-8.1-9-1 entitles a taxpayer to claim a refund
because of a reduction in tax liability resulting from a final federal
modification. The claim for refund must be filed within 180 days
from the date of notice of the final modification by the Internal
Revenue Service unless the normal three year statute of limitations
has yet to expire. If an agreement to extend the statute of limitations
for an assessment is entered into between the taxpayer and DOR,
the period for filing a claim for refund is likewise extended.

Estimated Quarterly Payments

Quarterly payments of estimated financial institution tax are
required under IC 6-5.5-6-3 if the annual tax liability is $2,500 or
more. The quarterly due dates for estimated quarterly payments
of a calendar year filer are April 20, June 20, September 20, and
December 20 of the taxable year.
If a taxpayer uses a taxable year that does not end on December 31, the
due dates for the estimated quarterly financial institution tax payments
are on or before the 20th day of the 4th, 6th, 9th, and 12th months of
the taxpayer’s taxable year. Estimated quarterly payments can be made
via INTIME, DOR’s e-services portal at intime.dor.in.gov.
If a payment is not submitted electronically via INTIME, it
must be made with the financial institution estimated quarterly
vouchers, Form FT-QP. DOR mails preprinted FT-QP vouchers to
current FIT estimated account holders.
Important. Estimated payments of $5,000 or more are required
to be made electronically, with a penalty assessed for failure to
comply. See page 4 for information about using INTIME,
DOR’s e-services portal.

Electronic Payment Requirements

If the amount of financial institution tax exceeds an average liability
of $5,000 per quarter (or $20,000 annually), a customer’s quarterly
estimated tax payments must be remitted electronically via INTIME,
DOR’s e-services portal at intime.dor.in.gov, or with an electronic
funds transfer (EFT). If DOR is unable to obtain payment by the
EFT, a penalty of $35 will be assessed. Because there is no minimum
amount of payment, DOR encourages all taxpayers not required to
remit by EFT to participate voluntarily in our EFT program.
Note. Taxpayers remitting by EFT should not file quarterly FT-QP
coupons. The amounts paid by EFT are reconciled when filing the
annual income tax return.
If DOR notifies a corporation of the requirements to remit by
EFT, the corporation must remit via EFT by the date/tax period
specified by DOR.

Failure to submit a required quarterly payment electronically will
result in a penalty of 10% being assessed at the time the annual
income tax return is filed. The penalty is computed on each payment
required to be made electronically that is instead submitted by
another means. Indiana Code does not require the extension of time
to file payment or final payment due with the annual tax return to be
made by EFT. Be sure to claim any EFT payment as an extension or
estimated payment credit. Do not file a return indicating an amount
due for an amount that has been paid by EFT.

Penalty for Underpayment of Estimated Taxes
(IC 6-5.5-7-1)

Corporations estimating financial institution tax liability are subject to
a 10% underpayment penalty if the corporation fails to file estimated
tax payments or fails to remit the sufficient amount of estimated
payments. To avoid the penalty, the required quarterly estimated
payment(s) should include at least 20% of the final financial institution
tax liability for the current taxable year or 25% of the corporation’s
final financial institution tax liability for the previous tax year.
The penalty for the underpayment of estimated tax is assessed
on the difference between the actual amount paid by the
corporation for each quarter and 20% of the final liability for the
current year or 25% of the corporation’s final tax liability for the
previous tax year, whichever is less. Refer to Schedule FIT-2220,
Underpayment of Estimated Tax by Financial Institutions, on
return page 4 of Form FIT-20.

Instructions for Completing Form FIT-20
Filing Period and Identification

File a 2023 Form FIT-20 return for a taxable year ending Dec.
31, 2023; a short tax year beginning in 2023; or a fiscal tax year
beginning in 2023 and ending in 2024. For a short or fiscal tax
year, fill in the beginning month and day and the ending date of
the taxable year at the top of the form.
Please use the correct legal name of the corporation and its
present mailing address.
For foreign addresses, please note the following:
•	 Be sure to enter the name of the city, town, or village in the
box labeled City;
•	 Be sure to enter the name of the state or province in the box
labeled State; and
•	 Enter the postal code in the box labeled ZIP Code; and
•	 Enter the 2-digit country code.
For a name change, check the box at the top of the return. Enclose
with the return copies of the amended Articles of Incorporation
or an Amended Certificate of Authority filed with the Indiana
Secretary of State.
Note. Corporate addresses, contact names, and other account
information may be updated using our self-service portal, INTIME.
The federal employer identification number (FEIN) shown in the
box must be correct.
FIT-20 Financial Institution Booklet 2023

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List the two-digit county code if filing a return for a corporate
address in Indiana. See Departmental Notice #1 located at www.
in.gov/dor/files/reference/dn01.pdf for a list of county codes.
Enter “00” (two zeroes) in the county box D if corporate address
lies outside of Indiana.

Line 6. Enter the amount deducted for bad debt reserves (IRC
Sec. 593).

Enter the principal business activity code, derived from the
North American Industry Classification System (NAICS), in the
designated block of the return. Use the six-digit activity code as
reported on the federal corporation return.

Line 8. Enter the amount deducted on the federal return for all state
and local taxes based on or measured by income (IRC Sec. 63).

Line 7. Enter the amount deducted for charitable contributions
(IRC Sec. 170).

Lines L through W of the FIT-20 must be completed for the
return to be accepted by DOR. Check or complete all boxes that
apply to the return.

Line 9. Enter an amount equal to the capital loss carryover (from
federal Schedule D: line 6, minus line 18 loss amount) to the
extent used in offsetting capital gains allowed under IRC Section
1212. See the instructions to line 23 for subtracting the amount
deductible for Indiana net capital losses.

Check the “final return” box only if the corporation is dissolved,
liquidated, or has withdrawn from the state. Timely file Form BC100 to close out any sales and withholding accounts. Complete these
online at www.in.gov/dor/business-tax/closing-a-business-account.

Line 10. Enter the amount of interest on state and local obligations
excluded under IRC Section 103, or under any other federal law,
minus the associated expenses disallowed in the computation of
taxable income under IRC Section 265.

Check the appropriate box if filing as a real estate mortgage
investment conduit (REMIC).

Lines 11 A, B, C, and D. Other Income Modifications

Note. The return for a REMIC is due on the 15th day of the 4th
month following the close of the taxpayer’s tax year.

Line 11A. Add or subtract an amount equal to the amount
claimed as a deduction for excess business interest. If a deduction
for interest paid or incurred in the current year has been
disallowed under IRC Section 163(j), subtract the amount of
interest disallowed in the current year. If you have interest that
was actually paid or incurred in a previous taxable year but
disallowed for federal purposes due to the limitations under IRC
Section 163(j) AND deducted for federal purposes in the current
taxable year, add back the amount of interest so deducted for
federal purposes.

Indicate on line V if an extension of time to file is in effect. If
applicable, enclose a copy of federal Form 7004 when filing the
state return.

Schedule A – Line Instructions

Per IC 6-8.1-6-4.5, round amounts to the nearest whole dollar.
Each line on which an amount can be entered has a “.00” already
filled in. This is a reminder that rounding is now required when
completing the tax return.
Also, do not use a comma in dollar amounts of four digits or
more. For example, instead of entering “3,455” enter “3455.”
Line 1. Enter federal taxable income from Federal Form 1120 before
the net operating loss deduction or the special federal deduction.
Note. If filing as a state-chartered credit union or an investment
company registered under the Investment Company Act of 1940,
proceed to line 19 to enter adjusted gross income as defined under
IC 6-5.5-1-2(b) and(c).
Line 2. Enter the qualifying dividend deduction and any other
amounts reported on Federal Form 1120, Line 29b.
Line 3. Subtract line 2 from line 1.

Add backs: Lines 4 through 10.

Line 4. Enter the amount deducted for bad debt (IRC Sec. 166).
See line 16 to report recovery of a previously reported worthless
debt to the extent a deduction was allowed from gross income in a
prior tax year under IRC Sec. 166(a).
Line 5. Enter the amount deducted for bad debt reserves of banks
(IRC Sec. 585).
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FIT-20 Financial Institution Booklet 2023

Enclose a complete explanation for adjustments.

Line 11B. Add or subtract an amount attributable to bonus
depreciation in excess of any regular depreciation that would be
allowed had not an election under IRC Section 168(k) been made
as applied to property in the year that it was placed into service.
Taxpayers who own property for which additional first-year
special depreciation for qualified property, including 100% bonus
depreciation, was allowed in the current taxable year or in an
earlier taxable year, must add or subtract an amount necessary
to make adjusted gross income equal to the amount computed
without applying any bonus depreciation. The subsequent
depreciation allowance is to be calculated as if no bonus
depreciation had been claimed until the property is disposed or
the property is fully depreciated for Indiana purposes. If line 11B’s
amount is negative, use a minus sign to denote that.
Special rules may apply if the bonus depreciation is taken against
property acquired in a like-kind exchange. See Income Tax
Information Bulletin #118 at www.in.gov/dor/files/reference/
ib118.pdf for additional information.
The additional regular depreciation may be excluded in
subsequent years from the amounts to be added back on line
11B, or 11C when excess IRC Section 179 deduction or bonus
depreciation was elected for assets placed in service in those
subsequent years.

See Income Tax Information Bulletin #118 available at www.
in.gov/dor/files/reference/ib118.pdf for information on the
allowance of depreciation for state tax purposes.
Line 11C. Add or subtract the amount necessary to make the
adjusted gross income of the taxpayer that placed any IRC Section
179 property in service in the current taxable year or in an earlier
taxable year equal to the amount of adjusted gross income that
would have been computed as if the federal limit for expensing
under IRC section 179 was $25,000 as opposed to $1,000,000
(adjusted for inflation).
Indiana has adopted an expensing cap of $25,000. This
modification affects the basis of the property if a higher Section
179 limit was applied. The federal increase to a $1,000,000
deduction was not allowed for purposes of calculating Indiana
adjusted gross income. However, the $2,500,000 threshold for
phase-out (adjusted for inflation) is allowed for purposes of
calculating Indiana AGI. The depreciation allowances in the
year of purchase and in later years must be adjusted to reflect the
additional first-year depreciation deduction, including the special
depreciation allowance for 100% bonus depreciation property,
until the property is sold or fully depreciated for Indiana purposes.
Special rules may apply if the Section 179 expensing is taken
against property acquired in a like-kind exchange. See Income
Tax Information Bulletin #118 at www.in.gov/dor/files/reference/
ib118.pdf for additional information.
Note. The net amount determined for the net bonus depreciation
or the IRC Section 179 add-back might be a negative figure
(because of a higher depreciation basis in subsequent years). If
it is, use a minus sign to denote that. (If the taxable income is a
loss, this adjustment increases a loss when added back.) Enclose a
statement to explain the adjustment.
Line 11D. Deduct the amount of income from qualified utility
and plant patents included in federal taxable income as permitted
under IC 6-3-2-21.7.
Note. Use a minus sign to denote the negative amount. For tax
years beginning after Dec. 31, 2007, a portion of this income is
exempt from Indiana AGI. For more information, see Income
Tax Information Bulletin #104 available at www.in.gov/dor/files/
reference/ib104.pdf.

been adding back the depreciation expense taken for federal purposes
that exceeded the amount allowable for Indiana purposes. The
accumulated depreciation on such an asset through 2012 is, therefore,
different for federal and state purposes. This difference will remain
until the asset is fully depreciated or until the time of its disposition.
So, in this example, the asset was acquired in January 2009 at a
purchase price of $120,000. This normally would have a 25-year
recovery period, but IRC Sec. 168 allows for a 15-year recovery
period. Tax year 2012 is the last year ABC Company will have
reported a qualified restaurant equipment add-back until the end
of the 15-year recovery period.
If this asset was sold before being fully depreciated, the catch-up
modification would be reflected in the year of the sale. However, if
this property is held through 2023 (the 15th year of depreciation),
ABC Company will report a negative $9,600 catch-up add-back
on the 2023 state tax return.
Reporting Certain Prior-Year Modifications
In certain cases, a modification in a prior year may have been
limited due to various federal limitations, including basis
limitations, passive loss limitations, and at-risk loss limitations.
Even though certain modifications may not apply to activities
during the current taxable year, you may be required to report a
modification when you have income against which to realize the
modification. Use the modification code for the year in which
the modification was actually accrued. This includes, but is not
limited to, modifications required to be reported using 3-digit
Code 149 (Meal Deduction Add-Back) and Code 634 (COVIDRelated Employee Retention Credit Disallowed Expenses
Deduction).
The following add-backs and deductions should be entered on
lines 12A through 12D:
Specified Research and Experimental Expenses Add-Back
(3-digit code: 154)
If you claimed a federal income tax deduction for specified
research and experimental expenses that are required to be
amortized for federal purposes pursuant to IRC section 174, add
back the amount of expenses you actually deducted for federal
income tax purposes. See the instructions for Code 641 for further
information on the amount of expenses allowable as a deduction.

Lines 12 A, B, C, and D. Total Add-Backs

Note. If after printing of these instructions, IRC Section 174
is amended to allow immediate expensing of research and
experimental expenses and you elect to amortize those expenses,
you cannot use this code and Code 641 to accelerate the
allowance of your expenses.

Adding Back Depreciation Expenses
Several of the discontinued add-backs were created by timing
differences between federal and Indiana allowable expenses.
Following is an example of how to report a difference:

Example. Corporation DEF incurred $100,000 of specified
research expenses in 2023. Corporation DEF reported $10,000
of amortized expenses in 2023. Corporation DEF will use Code
154 to add back the $10,000 claimed for federal purposes and use
Code 641 to report $100,000 allowable for Indiana purposes. For
2024-2028, Corporation DEF will continue to use Code 154 to
report timing differences.

Enter any add-backs and deductions on lines 12A through 12D.
Enter the name of the add-back/deduction, its 3-digit code, and
its amount. Use a minus sign to denote a negative amount. Attach
additional sheets if necessary.

Example. ABC Company has qualified restaurant equipment. For
federal tax purposes, they use the accelerated 15-year recovery period
for an asset placed in service in 2009. Since 2009, ABC Company has

FIT-20 Financial Institution Booklet 2023

Page 9

Government or Civic Group Capital Contribution Deduction
(3-digit code: 633)
Subtract any amount included in federal taxable income that are
capital contributions from a government or civic group and not
excluded under IRC Section 118.
Small Employer Health Insurance Premium Deduction
(3-digit code: 639)
If you:
•	 claimed a federal tax credit for small employer health
insurance premiums under IRC section 45R; and
•	 would have been permitted a deduction for those premiums
except for the disallowance under IRC section 280C(h),
you are permitted a deduction for the portion of the premiums
disallowed for federal purposes. Use Code 639 to enter the
amount of premiums for which a deduction was disallowed for
federal purposes because you claimed a federal tax credit for small
employer health insurance premiums.
Specified Research and Experimental Expenses Deduction
(3-digit code: 641)
If you claimed a federal income tax deduction for specified research
and experimental expenses that are required to be amortized for
federal purposes pursuant to IRC section 174, deduct the amount
of expenses paid or incurred in the current taxable year for federal
income tax purposes. See the instructions for Code 154 for further
information on the amount of expenses required to be added back.
Do not claim this deduction for any research expenses for which a
deduction is disallowed under IRC section 280C(c).
Note. If after printing of this bulletin, IRC Section 174 is amended to
allow immediate expensing of research and experimental expenses
and you elect to amortize those expenses, you cannot use this code
and Code 154 to accelerate the allowance of your expenses.
Example. Corporation DEF incurred $100,000 of specified
research expenses in 2023. Corporation DEF reported $10,000 of
amortized expenses in 2023. Corporation DEF will use Code 641
to report $100,000 allowable for Indiana purposes and use Code
154 to add back the $10,000 claimed for federal purposes. For
2024-2028, Corporation DEF will continue to use Code 154 to
report timing differences.
Line 13. Total Add-Backs: Add lines 4 through line 12D.
Line 14. Subtotal Income: Add line 3 and line 13.

Deductions from Income

Line 15. Subtract net income (foreign gross receipts less the
foreign deductions) derived from sources outside the United
States as defined in the Internal Revenue Code and included in
federal taxable income. Include all repatriated dividend income
listed on the IRC 965 Transition Tax Statement and included
in Line 1 of the FIT-20 on this line. Filers should keep detailed
records as DOR can ask for this information at a later date. If you
have a net foreign loss, enter that amount as a negative number.

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FIT-20 Financial Institution Booklet 2023

Line 16. Subtract an amount equal to a debt or portion of a debt
becoming worthless (IRC Sec. 166). If you have a recovery of an
amount included in a bad debt deduction in prior years, reduce
the deduction by the amount of the recovery (applicable to
taxpayers not defined as a large bank under IRC Section 585(c)(2)
or Savings Association under IRC Section 593). If your recoveries
are in excess of your current-year bad debt deduction, report the
net amount as a negative number.
Line 17. Subtract an amount equal to any bad debt reserves
included in federal income because of accounting method
changes required by IRC Sec. 585(c)(3)(A) or IRC Section 593.
Line 18. Total Deductions: Add lines 15 through 17.
Line 19. Total Income Prior to Apportionment: Subtract line 18
from line 14.
State-chartered credit unions must begin on line 19 by entering
“adjusted gross income.” For state-chartered credit unions, “adjusted
gross income” equals the total transfers to undivided earnings,
minus dividends for that taxable year after statutory reserves are set
aside under IC 28-7-1-24. In other words, “adjusted gross income”
can be defined as net transfers to undivided earnings. No other
deductions are permitted. The above definition also applies to a
nonresident credit union doing business in Indiana.
Investment companies, defined under IC 6-5.5-1-2(d), must
begin on line 19 by reporting federal taxable income computed
according to the Internal Revenue Code plus interest on state and
local obligations acquired by the taxpayer after Dec. 31, 2011,
and excluded from federal gross income under IRC section 103 ,
before any net operating loss deduction. An investment company
must also complete line 12 of FIT-20 Schedule E-U.
Line 20. Total Income Prior to Apportionment: Enter the
amount carried from line 19.
Line 21. Apportionment Percentage: (See instructions for
Schedule E-U.) This line should be used by all taxpayers and
unitary groups. Enter the amount from line 15 of Schedule E-U.
Line 22. Apportioned Adjusted Gross Income for Indiana:
Multiply line 20, total income subject to apportionment, by line
21, apportionment percentage from Schedule E-U.
Line 23. Indiana Net Capital Loss Adjustment: Enter your
Indiana net capital loss carryover (see the sample worksheet on
page 11). Line 23 is limited to the amount on line 22. Also, line
9 must be completed to add back an amount equal to the federal
net capital loss deduction.
Note. Excess capital losses may be carried forward for five years
following the loss year; however, there is no provision for the
carryback of a capital loss incurred under the FIT.

Net Capital Loss Adjustment for FIT-20 Line 23 – Sample Worksheet

Enclose with the return the worksheet that shows the following calculations. Use this format to determine the available amount of an Indiana
net capital loss and the remainder to carry forward. Add sheets to include all members of a unitary group. See the worksheet on page 12.
Computation of Indiana Net Capital Loss for Carryforward
For a taxpayer who is not filing a combined return, the taxpayer’s taxable income consists of an adjustment for net capital losses computed
under the Internal Revenue Code and derived from Indiana. Capital losses and capital gains derived from Indiana are determined by the
apportionment percentage applicable to each taxable year.
Example – Loss Year Ending 12-31-2022:
1.	 Net capital loss from federal Schedule D without IRC Section 1212 carryover...............................................................................-$80,000
2.	 FIT-20 Indiana apportioned income percentage for the taxable year of the capital loss ...................................................................... 50%
3.	 Indiana net capital loss for carry forward (limited to succeeding five years) ..................................................................................-$40,000
Additional provisions required for a combined return. Any net capital loss or net operating loss attributable to Indiana in the combined
return must be prorated between each member of the unitary group having nexus in Indiana. Each member must calculate its share of
the capital loss and amount available to be applied for the combined return.
The net capital loss attributable to Indiana in the combined return is prorated between each taxpayer member of the unitary group by
the quotient of:
a.	 The Indiana receipts of those taxpayer members attributable to Indiana, divided by;
b.	 The total receipts of all taxpayer members to Indiana.
Example:
Indiana receipts attributable to:
Member’s ratio of Indiana receipts:
Prorated share of Indiana net capital loss:

Member A
$6,000,000
25%
-$10,000

Member B
$9,600,000
40%
-$16,000

Member C
$8,400,000
35%
-$14,000

Combined Indiana Total
$24,000,000
100%

Carry forward these amounts separately on the combined return.
Use this portion of the worksheet as many times as needed to determine the deductible net capital loss applied against any Indiana net
capital gains during the five-year carryforward period following the year of a loss.
Computation of Net Capital Loss Adjustment
The net capital loss available to be applied, if any, and carried forward to any subsequent year shall be limited to the capital gains for
the subsequent year of each taxpayer member. The amount of net capital gains is determined by the same receipts formula used in
computing the amount of loss derived from Indiana and is prorated between members of a unitary group (IC 6-5.5-2-1).
Example – Gain Year Ending 12-31-2023:
4.	 Net capital gain from federal Schedule D (recomputed without any IRC Section 1212 unused capital loss carryover)............. $50,000
5.	 FIT-20 Indiana apportioned income percentage for the taxable year...................................................................................................... 60%
6.	 Available Indiana net capital gain for the year...................................................................................................................................... $30,000
Example for members of a unitary group filing a combined return having a net capital gain in 2023:
Indiana receipts attributable to:
Member A
Member B
Member C
$5,000,000
$35,000,000
$10,000,000
Member’s ratio of Indiana receipts:
10%
70%
20%
Prorated share of Indiana net capital loss:
-$3,000
-$21,000
-$6,000

Combined Indiana Total
$50,000,000
100%

Application of Indiana Net Capital Loss Adjustment
Enter the unused net capital loss from loss year (prorated amounts) or remaining amount(s) of each member as reduced during each of
the intervening years following the year of loss. The current year adjustment for Indiana is limited to the unused amount of net capital
loss, up to the amount of the net capital gains prorated for each member.
Member A
Member B
Member C
Amount of Loss Applied to (2023):
$3,000
$16,000
$6,000
7.	 Combined total of Indiana net capital loss adjustment for the tax year. Carry to line 23 of Form FIT-20............................... $25,000
Note. This amount may be applied only up to the amount of the current year’s income tax liability.
-0$5,000
-08.	 Remaining share of taxable capital
gain and (unused net capital loss):
-$7,000
-0$8,000 (Share of carryover to 2023)
FIT-20 Financial Institution Booklet 2023

Page 11

Summary of Total Indiana Net Capital Loss Carryover(s)

Compile for each year the total amount of net capital loss applied against net capital gains. The gain or loss available is limited to the
amount of each taxpayer member’s portion as apportioned to Indiana. For net capital loss carryovers from two or more years, show
amounts applied through all carryforward years. Unused net capital loss from loss years occurring since 2018, after application against
any net capital gains, may be carried through taxable year 2023.
Combined total Indiana net capital gains for each year.
Example of
2019
2020
2021
2022
carryover Enter
below total Indiana $
$
$
$
net capital loss from
Total amount of Indiana net capital loss applied against
loss year(s):
prorated net capital gains in each year

2023
$30,000

Carryover(s) of unused prorated
net capital losses available
for 2024

2022 -$40,000

-$25,000

-$15,000

Remaining taxable
net capital gains

$5,000

2018 -$
2019 -$
2020 -$
2021 -$

Instructions for Schedule A, continued
Line 24. Total Adjusted Gross Income: Subtract line 23 from line
22. If subtotal is less than zero, enter 0.
Line 25. Indiana Net Operating Loss Deduction: The amount
to report on this line is the Indiana portion of the net operating
loss, and it cannot exceed the amount reported on line 24. Net
operating losses can be carried forward for 15 years. There is no
provision for net operating loss carrybacks. Complete and enclose
Schedule FIT-20NOL with the return.
Line 26. Indiana Adjusted Gross Income: Subtract line 25 from
line 24.
Line 27. Indiana Financial Institution Tax Due: Multiply the
amount on line 26 by the current tax rate. If line 26 is a loss
amount, enter zero on this line.
Effective for taxable years beginning after Dec. 31, 2022, financial
institutions are subject to a FIT under IC 6-5.5 at 4.9%.
Line 28. Nonresident Taxpayer Credit (816): To claim this
credit, enclose a copy of the domiciliary state’s tax return.
Nonresident taxpayers might be able to claim a credit for taxes
paid to domiciliary states. To be eligible to claim the credit, the
following conditions must be met: (1) the receipt of interest or
other income from the loan is attributed to both the domiciliary
state and also to Indiana; and (2) the principal amount of the loan
is at least $2 million.
To determine the amount of tax attributable to the loan
transaction, divide the total receipts from qualified loans by the
total receipts attributable to Indiana. Multiply that quotient,
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FIT-20 Financial Institution Booklet 2023

expressed as a percentage, by the total amount of tax due to
determine the amount of tax attributable to the loan. This is the
amount of credit that may be available. The actual credit is equal
to the lesser of the actual taxes paid to the domiciliary state for
the loan transaction and the amount due to Indiana on the loan
transaction. If the taxpayer’s domiciliary state grants a credit
for taxes paid to other states, the credit available for purposes of
Indiana’s tax must be reduced by the amount of the credit granted
by the taxpayer’s domiciliary state. (See the instructions for
completing Schedule FIT-NRTC on page 20.)
Nonresident credits are determined for each taxpayer member
of a unitary group on an individual basis, notwithstanding that
the adjusted gross income is reported on a combined basis for all
members of a unitary group.
Line 29. Net Financial Institution Tax Due: Subtract the amount
on line 28 from the amount on line 27.
Line 30. Use Tax Due: Taxpayers are required to report and pay
7% use tax on taxable purchases. Purchases subject to use tax
include (but are not limited to) subscriptions to magazines and
periodicals as well as property that is purchased exempt from tax
and that is later converted to a nonexempt use by the business. To
calculate the amount of purchases subject to the use tax, please
complete the worksheet on page 13.
For more information regarding use tax, visit www.in.gov/dor or
call 317-232-2240.
Line 31. Subtotal Due: Add line 29 and line 30.

Tax Liability Credits — Limited to One Per Project
Restriction for Certain Tax Credits – Limited to One Per Project
Within a certain group of credits, a taxpayer may not be granted
more than one credit for the same project. You can choose the
credit to be applied. However, the credit selected cannot be
changed nor can the investment be redirected for a different credit
in subsequent years. See Income Tax Information Bulletin #59 at
www.in.gov/dor/files/reference/ib59.pdf for more information.
Six credits are included in this group:
1.	 Alternative fuel vehicle manufacturer credit;
2.	 Community revitalization enhancement district credit;
3.	 Enterprise zone investment cost credit (not applicable to FIT-20);
4.	 Hoosier business investment credit;
5.	 Industrial recovery credit; and
6.	 Venture capital investment credit.
Order of Credit Application
If claiming more than one credit, first use the credits that cannot
be carried over and applied against the state FIT in another year.
Next, use the credits that can be carried over for a limited number
of years and applied against the state FIT. If one or more credits
are available, apply the credits in the order that the credits would
expire. Finally, use the credits that can be carried over and applied
against the state FIT in another year.
Example. A taxpayer has a neighborhood assistance credit for
which no carryover is available, a school scholarship credit that
can be carried forward to 2024, and a community revitalization
enhancement district credit with an indefinite carryforward. The
taxpayer would apply the credits in the following order until the
credit is exhausted or the taxpayer’s liability is reduced to zero,
whichever comes first:
•	 Neighborhood assistance credit
•	 School scholarship credit expiring in 2024
•	 Community revitalization enhancement district credit
For more information about Indiana tax credits, see Income
Tax Information Bulletin #59 available at www.in.gov/dor/files/
reference/ib59.pdf.

Line 32. Neighborhood Assistance Tax Credit  828
If you made a contribution or engaged in activities to upgrade
areas in Indiana, you may be able to claim a credit for this
assistance. Contact the Indiana Housing & Community
Development Authority, Neighborhood Assistance Program, 30 S.
Meridian, Suite 1000, Indianapolis, IN 46204, telephone number
317-232-7777 (800- 872-0371 outside Indianapolis), for more
information. Pass-through entities are eligible for the credit.
Line 33. Enterprise Zone Employment Expense Tax Credit  812
This credit is based on qualified investments made within an
Indiana enterprise zone. It is the lesser of 10% of qualifying
wages or $1,500 per qualified employee, up to the amount of tax
liability on income derived from an enterprise zone. Enclose the
completed Schedule EZ 1, 2, 3 with the return, otherwise the
credit will be denied.
Find the Indiana Schedule EZ 1, 2, 3 at www.in.gov/dor/taxforms/enterprise-zone-forms for more information on how to
calculate this credit.
Line 34. Enterprise Zone Loan Interest Tax Credit  814
This credit is allowed for up to 5% of the interest received from all
qualified loans made during a tax year for use in an active Indiana
enterprise zone.
See Income Tax Information Bulletin #66 available at www.in.gov/
dor/tax-forms/enterprise-zone-forms for more information on
how to calculate this credit.
Note. Schedule LIC must be enclosed if claiming this credit; it is
available at www.in.gov/dor/tax-forms/enterprise-zone-forms.
Contact the Indiana Economic Development Corporation at 1
N. Capitol Ave., Suite 700, Indianapolis, IN 46204; call them at
317-232-8800; or visit the IEDC website at www.iedc.in.gov for
additional information.
Enclose Schedule LIC with the return, otherwise the credit will be
denied.

Sales/Use Tax Worksheet

List all purchases made during the tax year from out-of-state retailers.
Column A

Description of personal property purchased from out-of-state retailer

Column B

Date of purchase(s)

Column C

Purchase Price of
Property(s)

Magazine subscriptions:
Mail order purchases:
Internet purchases:
Other purchases:
1.	Total purchase price of property subject to the sales/use tax: enter total of Columns C...............................

1

2.	Sales/use tax: Multiply line 1 by .07 (7%)......................................................................................................

2

3.	Sales tax previously paid on the above items (up to 7% per item)................................................................

3

4.	Total amount due: Subtract line 3 from line 2. Carry to Form FIT-20, line 30. If the amount is negative,
enter zero and put no entry on line 30 of the FIT-20......................................................................................

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FIT-20 Financial Institution Booklet 2023

Page 13

Note. Claimants must be in good standing to remain eligible for the
enterprise zone loan interest credit. The term “zone business” includes
an entity that claims certain tax benefits available to businesses
located in an enterprise zone. A taxpayer can claim the enterprise
zone loan interest credit only if that taxpayer pays a registration
fee, provides additional assistance to urban enterprise associations
required of zone businesses, and complies with the requirements
adopted by the Indiana Economic Development Corporation. This
credit is also not available for loans made after December 31, 2017.
Lines 35 and 36 – Other Tax Liability Credits Available to
Financial Institutions
Claim other allowable tax liability credits by entering the name,
credit ID code number, and amount using line 35 or 36 (see
page 16 for a list of credits available for these lines). The total
nonrefundable tax liability credit is limited to the amount of
income tax on line 29, unless otherwise noted. If your claim
exceeds the amount of your tax liability, adjust by recalculating
the credit to the amount that you can apply. If you qualify for
the refundable Economic Development for a Growing Economy
(EDGE) job retention credit, claim that credit on line 43.
A detailed explanation or supporting schedule must be enclosed
with the return when claiming any credits on lines 35, 36, 43, and
44. See Income Tax Information Bulletin #59 available at www.
in.gov/dor/files/reference/ib59.pdf for more information about
the Indiana tax credits available to taxpayers.

Line 42. Other Payments/Credits
Enter any other payments that are allowable and enclose an
explanation. For pass-through entity tax and composite/
withholding payments, include a copy of the Schedule IN K-1
reflecting the credit.
Headquarters Relocation Credit (refundable portion)
Generally, this credit is nonrefundable. Beginning with the 2019
tax year, some or all of this credit may be refundable. This credit is
administered by the Indiana Economic Development Corporation
(IEDC). If the IEDC has determined some or all of this credit to be
refundable, enter on this line the refundable amount of the credit
less the portion of the credit used to offset your tax liability. You
must maintain the documentation provided to you that supports
the refundable portion of this credit as DOR may request it.
For more information (including limitations on the credit and the
application process), see Income Tax Information Bulletin #97,
available at www.in.gov/dor/files/reference/ib97.pdf.
Line 43. Economic Development for a Growing Economy
Credit (EDGE)
Claim the approved Economic Development for a Growing
Economy (EDGE) credit on this line. Enter the amount from
line 19 of Schedule IN-EDGE here. This credit is for businesses
that conduct certain activities designed to foster job creation in
Indiana. It is a refundable tax liability credit.

Line 37 – Certified Credits Available to Financial Institutions
If you are claiming any credits on Schedule IN-OCC, including
credits passed through from Schedule IN K-1 Part 2, enter the total
of those credits here and enclose Schedule IN-OCC with you return.
The credit codes reported on Schedule IN-OCC are 818, 820, 835,
849, 858, 860, 863, 865, 867, 868, 869, 1818, 1820, 1835, 1849, 1858,
1860, 1863, 1865, 1867, 1868, and 1869.

Note. Complete Schedule IN-EDGE and enclose it with the return,
otherwise the credit will be denied. Obtain a PIN from the IEDC.

Line 38. Total Credits
Add the amounts on lines 32 through 37.

Line 44. Economic Development for a Growing Economy
Retention Credit (EDGE-R)
Claim the approved Economic Development for a Growing
Economy Retention Credit on this line. Enter the amount from
line 19 of Schedule IN-EDGE-R here.

Line 39. Total Tax Due
Subtract the amount on line 38 from the amount on line 31.
Line 40. Total Estimated Tax Paid
Enter the total amount of estimated tax paid for the taxable year.
Itemize each quarterly payment in the spaces provided.
List all members included in a combined return by completing
FIT-20 Schedule H. Show any amount of estimated tax you are
claiming that might have been paid by a member under the
federal employer identification number.
Line 41. Extension Payment and Prior Year Overpayment
Enter on line (a) the payment made resulting from an extension of
time to file request, and on line (b) list your carryover credit of a
prior-year overpayment. This provision is applicable to a prior-year
overpayment of the financial institution tax only. Indiana will accept
the federal extension date, plus an additional one month. However,
an extension of time to file is not an extension of time to pay. You
must pay at least 90% of the current year liability by the original due
date of the FIT return. Enter the total amount on line 41.
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FIT-20 Financial Institution Booklet 2023

Contact the Indiana Economic Development Corporation at One
North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility
requirements. Call 317-232-8800 or visit www.iedc.in.gov for
additional information.

This credit is for businesses that conduct certain activities designed to
foster job retention in Indiana. It is a refundable tax liability credit.
Note. Complete Schedule IN-EDGE-R and enclose it with the return,
otherwise the credit will be denied. Obtain a PIN from the IEDC.
Contact the Indiana Economic Development Corporation at One
North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility
requirements. Visit www.iedc.in.gov for additional information.
Line 45. Total Payments
Add lines 40 through 44.
Line 46. Balance of Tax Due
Subtract line 45 from line 39.
Line 47. Penalty for Underpayment
Enter the penalty, if any, for underpayment of estimated tax.

Complete and enclose Schedule FIT-2220 to determine if the
underpayment of estimated tax penalty or an exception to the
penalty applies.
Note. If a taxpayer’s annual liability exceeds $2,500, filing
quarterly estimated payments to remit 25% of the estimated
annual tax liability is required.
Line 48. Interest
If payment is made after the original due date, interest must be
included with the payment. Interest is calculated from the original
due date of the return until the date of payment.
For the current rate of interest charged see Departmental Notice
#3 available at www.in.gov/dor/files/reference/dn03.pdf, or call
DOR at 317-232-2240.
An extension of time to file the return does not grant an extension
of time to pay any tax due; therefore, interest must be calculated.
Line 49. Late Penalty
Enter the computed penalty amount that applies.
If a payment is made after the original due date, a penalty that is
the greater of $5 or 10% of the remaining tax due must be entered.
The penalty for late payment or late filing will not be imposed if
all three of the following conditions are met:
1.	 A valid extension of time to file exists;
2.	 At least 90% of the tax was paid by the original due date; and
3.	 The remaining tax and interest due is paid by the extended
due date.
If the return showing no tax liability (on line 31) is filed late, the
penalty for failure to file by the due date will be $10 for each day
that the return is past due, up to a maximum of $250.
Line 50. Total Due
Add lines 46 through 49. If a payment is due, enter the total
tax due plus any applicable penalty and interest. Payment can
be made electronically via INTIME, DOR’s e-services portal
at intime.dor.in.gov, or checks should be made payable to the
Indiana Department of Revenue for each Form FIT-20 filed. All
payments must be made in U.S. funds.
Lines 51, 52, and 53. Total Overpayment
If the taxpayer has an overpayment determined by subtracting the
amounts on lines 39, 47, and 49 from the amount on line 45, the
corporation can elect to have a portion or all of its overpayment
credited to following year’s estimated tax account. The portion to
be refunded should be entered on line 52, and the portion to be
applied to next year’s account should be entered on line 53. The
total of line 52 and line 53 must equal the amount on line 51.
An election to apply an overpayment to the following year is
irrevocable. If your overpayment is reduced due to an error on
the return or an adjustment by DOR, the amount to be refunded
will be corrected before any changes are made to the estimated
account for next year. A refund may be set off and applied to other
liabilities under IC 6-8.1-9-2(a) and 6-8.1-9.5 before it is credited
to the following year’s estimated tax account.

Certification of Signatures and
Authorization Section

Sign, date, and print the corporation name on the return. If a paid
preparer completes the return, authorize DOR to discuss the tax
return with the preparer by checking the authorization box above
the line for the name of the personal representative.

Personal Representative Information

Typically, DOR contacts the corporation if there are any questions
or concerns about the tax return. If DOR is authorized to discuss
the tax return with someone else (e.g., the person who prepared it
or a designated person), complete this area.
First, check the “Yes” box that follows the sentence “I authorize
the Department to discuss my tax return with my personal
representative.”
Next, enter:
•	 The name of the individual designated as the corporation’s
personal representative; and
•	 The individual’s email address.
If this area is completed, DOR is authorized to contact the
personal representative, instead of the corporation, about this
tax return. After the return is filed, DOR will communicate
primarily with the designated personal representative on matters
concerning the return.
Note. The authorization for DOR to be in contact with a personal
representative can be revoked at any time. To do so, submit a signed
statement to DOR. The statement must include a name, Federal
Employer Identi