Indiana Part-Year and Full-Year Nonresident Income Tax Instruction Booklet

Part-Year and Full-Year Nonresident Income Tax Instruction Booklet
IT-40PNR Part Year and Full Year Nonresident Individual Income Tax Booklet
INDIANA

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IT-40PNR

Part-Year and Full-Year Nonresident

Individual Income Tax Booklet

freefile.dor.in.gov  FAST • FRIENDLY • FREE

WAIT!
YOU MAY QUALIFY FOR FREE ONLINE TAX FILING!

The majority of Indiana taxpayers file electronically every year. Consider the benefits of filing electronically:
•	

Faster Refund. Electronic filing reduces errors and expedites refund time – within 10 to 14 days
(compared with 10 to 12 weeks for a paper return).

•	

Fewer Errors. Up to 20 percent of paper-filed returns have errors, which can result in delays and possible
penalty and/or interest for the taxpayer. Returns filed electronically, however, are 98 percent accurate.

•	

Easier Filing. You won’t have to complete the many complicated forms in this booklet. Instead, you go online,
answer some easy questions, and before you know it your taxes are complete.

You may be eligible to file your taxes online for FREE with INfreefile. Go to www.in.gov/dor/individual-income-taxes/
infreefile to see if you qualify or learn more about INfreefile on page 4.

SP 258
(R25 / 12-23)

Which Indiana Tax Form Should You File?

Credits

Indiana has three different individual income tax returns. Read the
following to find the right one for you to file.

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Form IT-40 for Full-Year Residents

Use Form IT-40 if you (and your spouse, if married filing jointly) were
full-year Indiana residents.

•	

Form IT-40PNR for Part-Year and Full-Year
Nonresidents

Use Form IT-40PNR if you (and your spouse, if married filing jointly):
•	 Were Indiana residents for less than a full-year or not at all, or
•	 Are filing jointly and one was a full-year Indiana resident and the
other was not a full-year Indiana resident, and
•	 Do not qualify to file Form IT-40RNR.

Form IT-40RNR for Full-Year Residents of Reciprocal
States

Use Form IT-40RNR if you (and your spouse, if married filing jointly)
were:
•	 Full-year residents of Kentucky, Michigan, Ohio, Pennsylvania or
Wisconsin, and
•	 The only type of income from Indiana was from wage, tip, salary
or other compensation.*
*You are required to file Form IT-40PNR if you have any other kind of
Indiana-source income.

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Deductions
•	

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Note. If you have income that is being taxed by both Indiana and
another state, you may have to file a tax return with the other state.

Military Personnel

See the instructions on page 7 to determine which form to file.
Military personnel stationed in a combat zone should see the
instructions on page 7 for extension of time to file procedures.

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2023 Changes
Update. Line 36A of Form IT-40PNR, Schedule A, assumes conformity
with the Internal Revenue Code of 1986, as amended and in effect
on January 1, 2023. If the 2024 Indiana General Assembly does not
conform to the most current changes to the Internal Revenue Code,
you may have to amend your tax return at a later date to reflect
any differences between Indiana and federal law. You may wish to
periodically check DOR’s homepage at www.in.gov/dor for updates.

Add-backs
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A new add-back (151) has been added for certain modifications
required to be applied against a net operating loss resulting from
an excess business loss. See page 19 for more information.
A new add-back (153) has been added for certain modifications
related to net operating losses permitted as a result of excess
inclusion income. See page 19 for more information.
A new add-back (154) is available for specified research and
experimental expenses required to be amortized for federal
income tax purposes. See page 20 for more information.

A new credit (874) is available for qualified investments at a mine
reclamation site. See page 49 for more information.
Indiana’s Earned Income Tax Credit (EITC) has recoupled with
the federal EITC. Indiana EITC is now 10% of federal EITC.
Taxpayers may now claim up to three qualified children on
Schedule IN-EIC. See page 37 for more information.
The Indiana’s CollegeChoice 529 Education Savings Plan Credit
maximum credit amount has increased. In addition, contributions
made after December 31, but no later than April 15, may claim a
credit on either the current tax year or previous tax year returns.
See page 45 for more information.
Credit for Taxes Paid to Other States. If you paid a pass through
entity tax similar to Indiana’s Pass Through Entity Tax (PTET),
you may claim a credit for those taxes in the same manner as if
you had paid those taxes. See page 44 for further information.
Credit for Indiana Pass Through Entity Tax (PTET) Paid. If you
are a taxpayer who is a partner in a partnership or a shareholder
of an S corporation that has elected to pay PTET, the entity owner
is entitled to a refundable credit. This credit is also available
to owners of pass-through entities that pass along PTET from
another entity. See page 36 for more information.
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 29 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 29 for more information.
A new deduction (642) is available for Career Scholarship
Account (CSA) program grants received and used toward
qualified expenses. See page 24 for more information.
The National Guard and Reserve Component Members
Deduction (621) now exempts all military pay for members of a
reserve component of the armed forces of the United States or the
National Guard from the income tax for taxable years beginning
in 2023 and thereafter. See page 27 for more information.

Exemptions
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Additional Dependent Child Exemption Change. If a taxpayer
is claiming a child as a dependent for the first taxable year in
which the exemption is allowed, the taxpayer is permitted to
claim an amount of $3,000, instead of $1,500 for one tax year. See
page 31 for more information.

Miscellaneous
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•	

The Individual Income Tax Rate is lowered to 3.15% for tax year
2023.
Direct Debit of Estimated Payment. DOR will now accept direct
debit of estimated payments with the electronic filing of your
current year tax return.

IT-40PNR Booklet 2023

Page 3

Need Tax Forms or Information Bulletins?

Ready to File Your Return?

Use Your Personal Computer

Use an Electronic Filing Program

Visit our website and download the forms you need. Our address for
tax forms is www.in.gov/dor/tax-forms. Information Bulletins are
available at www.in.gov/dor/legal-resources/tax-library.

Need Help With Your Return?
INTIME e-Services Portal Available

INTIME, DOR’s e-services tax portal available at intime.dor.in.gov,
provides the following functionalities for Individual 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 allows customers to make
estimated payments electronically with just a few clicks.

Local Help

You may be eligible to take advantage of the IRS Volunteer Return
Preparation Program (VRPP). This program offers free tax return
help to low income, elderly and special needs individuals. Volunteers
will fill out federal and state forms for those who qualify. Call the IRS
at 1-800-829-1040 to find the nearest VRPP location. Be sure to take
your W-2s and 1099s with you.

Information Line

Call the information line at 317-232-2240 to get the status of your
refund, billing and payment plan information, a copy of your tax
return, or prerecorded tax topics. If you wish to check for billing
information, be sure to have a copy of your tax notice. The system will
ask you to enter the tax identification number shown on the notice. To
speak to a representative, please call during regular business hours, 8
a.m. to 4:30 p.m., Monday - Friday.

Internet Address

If you need help deciding which form to file, or need to get
information bulletins or policy directives on specific topics, visit our
website at www.in.gov/dor.
Page 4

IT-40PNR Booklet 2023

A majority of Hoosier taxpayers use an electronic filing program
to file their state and federal individual income tax returns every
year. Electronic filing provides Indiana taxpayers the opportunity
to file their federal and state tax returns immediately, and receive
their Indiana refunds in about half the time it takes to process a
paper return. It takes even less time if you use direct deposit, which
deposits your refund directly into your bank account. Even if there
is an amount due on either return, Indiana taxpayers can still file
electronically and feel comfortable knowing that the returns were
received by the IRS and the Indiana Department of Revenue (DOR).
Use an electronic vendor or contact your tax preparer to see if he or
she provides this service.

INfreefile

This tax season Indiana continues to offer a free tax filing service
through the cooperation of the Free File Alliance. Eligible Indiana
taxpayers can file both the federal and Indiana individual tax returns
using highly interactive and easy-to-use web-based applications that
speed both returns and refunds. You can choose from a list of multiple
vendors that provide this free service. DOR estimates nearly 2 million
Indiana taxpayers are eligible for this free service. See if you are
eligible by visiting www.in.gov/dor/individual-income-taxes/infreefile.

Our Website

Our website offers tax filing options, downloadable blank forms and
instructions, information bulletins, an online helpdesk, helpful email
links and a calendar with filing due dates. Visit DOR’s website at www.
in.gov/dor.

Moving?

Notify DOR if you move to a new address after filing your tax return,
Change your address with us by doing one of the following:
•	 Use DOR’s e-services portal, the Indiana Taxpayer Information
Management Engine (INTIME), to change your address at intime.
dor.in.gov. INTIME offers customers the ability to manage their
tax account(s) in one convenient location, 24/7.
You can change your address by creating an INTIME log on. Once
logged in, go to the “All Actions” tab and locate the “Update Name
and Addresses” panel and select the “Addresses” tab.
An INTIME User Guide for Individual Income Tax Customers is
available at www.in.gov/dor/files/intime-individual-guide.pdf to
help you through the process.
•	 Fax your request, including your Social Security number, old
address, new address and signature, to 317-615-2608.
•	 Mail the request, including your Social Security number, old
address, new address and signature, to Indiana Department of
Revenue, P.O. Box 6197, Indianapolis, IN 46206-6197.
•	 Visit one of our District Offices (find locations here: www.in.gov/
dor/contact-us/district-office-contact-info) in person. Make
sure to bring your Social Security number, old address, and new
address with you.

Filing an Amended (Corrected) Tax Return

If you need to amend (correct) your 2023 individual income tax return
after you initially filed:

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Prepare another IT-40 PNR return that reflects all changes and
check the “Amended” box on the front page. Failure to do so can
delay processing.
Include a copy of all required schedules reflecting all changes and
documentation. Failure to do so can delay processing.
File the amended return electronically, if possible.

Note. All amounts previously paid should be reported as an estimated
payment. All refunds previously received should not be reported on an
amended filing.
If you are filing an amended return for 2023 reporting additional tax and
you previously received a refund, the department will issue either a notice
of proposed assessment or demand for payment to request repayment of
the refund plus interest and penalty.

Name and Suffix

Please use all capital letters when entering your information. For
example, Jim Smith Junior should be entered as JIM SMITH JR.
Name. If your last name includes an apostrophe, do not use it. For
example, enter O’Shea as OSHEA. If your name includes a hyphen, use
it. For example, enter SMITH-JONES.
Suffix. Enter the suffix associated with your name in the appropriate box.
•	 Use JR for junior and SR for senior.
•	 Numeric characters must be replaced by alphabetic Roman
Numerals. For example, if your last name is Charles 3rd, do not
use 3rd; instead, enter III in the suffix field.
•	 Do not enter any titles or designations, such as M.D., Ph. D., RET.,
Minor or DEC’D.

The Form IT-40PNR and supporting schedules are located at www.
in.gov/dor/tax-forms/2023-individual-income-tax-forms. For prior
years, please see the instructions for that year.

Married Filing Requirements

Annual Public Hearing

•	

In accordance with the Indiana Taxpayer Bill of Rights, DOR will
conduct an annual public hearing in Indianapolis in June 2024. Event
details will be listed at www.in.gov/dor/news-media-and-publications/
dor-public-events/annual-public-hearings. Please come and share
feedback or comments about how DOR can better administer Indiana
tax laws. If not able to attend, please submit feedback or comments in
writing to: Indiana Department of Revenue, Commissioner’s Office,
MS# 101, 100 N. Senate Avenue, 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.

Before You Begin
Important. You must complete your federal tax return first.

Filling in the Boxes – Please Use Ink

If you are filling out the form by hand, please use black or blue ink and
print your letters and numbers neatly within each box. If you do not
have an entry for a particular line, leave it blank. Do not use dashes,
zeros or other symbols to indicate that you have no entry for that line.

Social Security Number

Be sure to enter your full 9-digit Social Security number in the boxes
at the top of the form. If filing a joint return, enter your Social Security
number in the first set of boxes and your spouse’s full 9-digit Social
Security number in the second set of boxes. An incorrect or missing
Social Security number can increase your tax due, reduce your refund,
or delay timely processing of your filing.

Individual Taxpayer Identification Number (ITIN)

If you already have an ITIN, enter it wherever your Social Security
number is requested on your tax return. If you are in the process of
applying for an ITIN, check the box located directly beneath the Social
Security number area at the top of the form. For information on how
to get an ITIN, contact the IRS at 1-800-829-3676 and request federal
Form W-7, or find it online at www.irs.gov.

•	

•	

Married Filing Jointly
If you filed your federal income tax return as married filing
jointly, you also must file married filing jointly with Indiana.
Married Filing Separately
If you file your federal income tax return as married filing separately,
you must also file as married filing separately with Indiana. Enter
both of your Social Security numbers in the boxes on the top of the
form, and then check the box directly to the right of those boxes.
Enter the name of the person filing the return on the top line, but
do not enter the spouse’s name on the second name line.
Married Persons Who Live Apart Filing Status
If you were not divorced or legally separated during the tax year
you may have qualified for and filed as ‘head of household’ on
your federal income tax return. If you did, do not check the
married filing separately box. Also, do not enter either your
spouse’s name or Social Security number.

Military Address

Overseas military addresses must contain the APO, FPO designation
in the “city field” along with a two-character “state” abbreviation of
AE, AP, or AA and the ZIP code. Place these two- and three-letter
designations in the city name area.

ZIP/Postal Code

Enter your five- or nine-digit ZIP code (do not use a dash). For
example, enter 46217 or 462174540. If filing with a foreign address,
enter the associated postal code.

Foreign Country Code

Complete this area if the address you are using is located in a foreign
country. Enter the 2-character foreign country code, which may be
found online at www.in.gov/dor/legal-resources/tax-library/foreigncountry-code-listing.

County Information

Enter the two-digit code numbers for the county(s) where you and
your spouse, if filing jointly, lived and worked on Jan. 1, 2023. You
can find these code numbers on the chart found on the back of
Schedule CT-40PNR. See the instructions beginning on page 55
for more information, including the definitions of the county where
you live and work, details for military personnel, retired individuals,
homemakers, unemployed individuals, out-of-state filers, etc.
IT-40PNR Booklet 2023

Page 5

Refund Check Address

Your refund check will be issued in the name(s), address and Social
Security number(s) shown on your tax return. It is very important that
this information is correct and legible. Any wrong information will
delay your refund.

Rounding Required

Each line on which an amount can be entered has “.00” already filled
in. This is to let you know that rounding is required when completing
your tax return.
You must round your amounts to the nearest whole dollar.

Note. There are three types of Indiana tax returns available. The type
you need to file is generally based on your residency status. Read the
following to decide if you are a full-year resident, part-year resident,
or nonresident of Indiana, and which type of return you should file.
In addition, if you are an owner of a pass-through entity and filed
Schedule IN-COMPA, you must file an Indiana tax return.

Part-Year Residents and Full-Year Nonresidents

If you were a part-year resident and received income while you lived
in Indiana, you must file Indiana Form IT-40PNR, Part-Year Resident
or Nonresident Individual Income Tax Return.

To do this, drop amounts of less than $0.50.
Example. $432.49 rounds down to $432.00.

If you were a legal resident of another state(s) (exception: see next
paragraph) and had income from Indiana (except certain interest,
dividends, or retirement income), you must file Form IT-40PNR.

Increase amounts of $0.50 or more to the next higher dollar.
Example. $432.50 rounds up to $433.00.

Full-Year Residents of Kentucky, Michigan, Ohio,
Pennsylvania or Wisconsin

Losses or Negative Entries

When reporting a loss or negative entry, use a negative sign.
Example. Write a $125 loss as -125.

Commas

Do not use commas when entering amounts. For instance, express
1,000 as 1000.

Enclosing Schedules, W-2s, IN K-1s, Etc.

Use only DOR-issued or DOR-permitted forms and schedules. Failure to
use correct forms and schedules could result in disallowance of deductions
or credits and will delay processing your return. You will find an enclosure
sequence number in the upper right-hand corner of each schedule. Make
sure to put your completed schedules in sequential order behind the IT40PNR when assembling your tax return. Do not staple or paper clip your
enclosures. If you have a schedule on which you’ve made no entry, do not
enclose it unless you have completed information on the back of it.
Also, enclose:
•	 All W-2s, 1099s, Forms IN-MSID-A and IN K-1s on which
Indiana state and/or county tax withholding amounts appear
•	 All IN K-1s on which pass through entity tax amounts appear
•	 All 1099Gs showing unemployment compensation
•	 A check/money order, if applicable
A note about your W-2s. It is important that your W-2 form is
readable. The income and state and county tax amounts withheld are
verified on every W-2 form that comes in with your tax return. We
encourage you to enclose the best copy available when you file.

Who Should File?

You may need to file an Indiana income tax return if:
•	 You lived in Indiana and received income, or
•	 You lived outside Indiana and had any income from Indiana.
Filing Status Requirement. If you and your spouse file a joint federal
tax return, you must file a joint tax return with Indiana. If you and
your spouse file separate federal tax returns, you must file separate tax
returns with Indiana.
Page 6

IT-40PNR Booklet 2023

If you were a full-year resident of Kentucky, Michigan, Ohio,
Pennsylvania or Wisconsin, and your only income from Indiana was
from wages, salaries, tips or commissions, then you need to file Form
IT-40RNR, Indiana Reciprocal Nonresident Individual Income Tax
Return.

Full-Year Residents

Full-year residents must file Form IT-40, Indiana Full-Year Resident
Individual Income Tax.
You are a full-year Indiana resident if you maintain your legal
residence in Indiana from Jan. 1 – Dec. 31 of the tax year. You
do not have to be physically present in Indiana the entire year to
be considered a full-year resident. Residents, including military
personnel, who leave Indiana for a temporary stay, are considered
residents during their absence.
Retired persons spending the part of the year in another state may still
be full-year residents if:
•	 They maintain their legal residence in Indiana and intend to
return to Indiana during part of the taxable year
•	 They retain their Indiana driver’s license
•	 They retain their Indiana voting rights
•	 They claim a homestead deduction on their Indiana home for
property tax purposes
If you were a full-year resident of Indiana and your gross income (the
total of all your income before deductions) was greater than certain
exemptions*, you must file Indiana Form IT-40.
* To figure your exemptions for filing requirement purposes, Indiana
allows a $1,000 exemption for you and a $1,000 exemption for your
spouse (if married filing jointly). You also get a $1,000 exemption
for each dependent you are eligible to claim. See instructions
beginning on page 29 for additional information concerning how
to figure your dependents. If your gross income is less than your total
exemptions figured above, you are not required to file. However, you
may want to file a return to get a refund of any state and/or county
tax withheld by your employer, or other refundable credits, such as an
earned income credit or estimated tax payment.

Deceased Taxpayers

If an individual died during 2023, or died after Dec. 31, 2023, but
before filing his/her tax return, the executor, administrator or
surviving spouse must file a tax return for the individual if:
•	 The deceased was under the age of 65 and had gross income more
than $1,000
•	 The deceased was age 65 or older and had gross income more
than $2,000, or
•	 The deceased was a nonresident and had gross income from
Indiana.
Be sure to enter the month and day of death for the taxpayer or spouse
in the appropriate box located on Schedule H. For example, a date of
death of Jan. 9, 2023, would be entered as 01/09/2023.
Note. The date of death should not be entered here if the individual
died after Dec. 31, 2023, but before filing the tax return. The date of
death information will be shown on the individual’s 2024 tax return.

Signing the Deceased Individual’s Tax Return

If a joint return is filed by the surviving spouse, the surviving spouse
should sign his or her own name and after the signature write: “Filing
as Surviving Spouse.”
An executor or administrator appointed to the deceased’s estate must
file and sign the return (even if this isn’t the final return), indicating
their relationship after their signature (e.g. administrator).
If there is no executor, or if an administrator has not been appointed,
the person filing the return should sign and give their relationship to
the deceased (e.g. “John Doe, nephew”). Only one tax return should be
filed on behalf of the deceased.

Example. Annie, who is a Kansas resident, is stationed in Indiana. She
earned $1,300 from her Indiana part-time job. She will need to report
that income to Indiana on Form IT-40PNR.
If you are a full-year Indiana resident in the military, your spouse is a
legal resident of another state and you filed a joint federal return, you
will need to file Form IT-40PNR.
Important. Refer to the instructions on page 56 for an explanation
of county of residence for military personnel.

When Should You File?

Your tax return is due April 15, 2024. If you file after this date and owe
tax, you will owe interest on the unpaid amount and you may owe
penalty, too. See page 12 for more information.
Fiscal year tax returns are due by the fifteenth (15) day of the fourth
(4th) month after the close of the fiscal year. You must complete the
fiscal year filing period information at the top of the form.

Extension of Time to File — What if You Can’t File on
Time?
You must get an extension of time to file if you:
•	 Are required to file, and
•	 You cannot file your tax return by the April 15, 2024, due date.
Whether you owe additional tax, are due a refund, or are breaking
even, you still need to get an extension if filing after April 15, 2024.
Note. Indiana’s Application for Extension of Time to File, Form IT-9,
extends the filing date to Nov. 15, 2024.

Note. DOR may ask for a copy of the death certificate, so please keep a
copy with your records.

If You Owe…

Refund Check for a Deceased Individual

Option 1. File Indiana’s Application for Extension of Time to File,
Form IT-9. This must be filed by April 15, 2024, for the extension
request to be valid.

If you (the surviving spouse, administrator, executor or other) have
received a refund check and cannot cash it, contact the State Comptroller
at www.in.gov/comptroller/contact-us to get a widow’s and distributee’s
affidavit (POA-20) or a reissuance of refund (IN-1310). Send the
completed form, the refund check and a copy of the death certificate to
the State Comptroller so a refund check can be issued to you.

Military Personnel — Residency

If you were an Indiana resident when you enlisted, you remain an
Indiana resident no matter where you are stationed. You must report
all your income to Indiana.
If you changed your legal residence (military home of record) during
the tax year, you are a part-year resident and should file Form
IT-40PNR. You must also enclose a copy of Military Form DD-2058
with the tax return. As an Indiana part-year resident you will be taxed
on the income you earned while you were a resident of Indiana, plus
any income from Indiana sources.
If you are stationed in Indiana and you are a resident of another state,
you won’t need to file with Indiana unless you have non-military
income from Indiana sources.

Note. You may file Indiana’s Application for Extension of Time to File
online if you make a payment with it by April 15, 2024.
Pay electronically using DOR’s e-services portal, the Indiana Taxpayer
Information Management Engine (INTIME), by visiting intime.dor.
in.gov. INTIME offers customers the ability to manage their accounts
in one convenient location, 24/7.
Option 2. Filing for a federal application for extension of time to file
with the IRS will automatically provide for a state extension of time to
file. You must file your state tax return by Nov. 15, 2024, paying any
balance due with that filing.
While interest is due on any amount paid after the original April 15
due date, penalty will be waived if both of the following conditions
are met:
•	 The remaining balance due is paid in full by Nov. 15, 2024, and
•	 You paid at least 90% of the tax expected to be owed by the
original April 15 due date.

IT-40PNR Booklet 2023

Page 7

If You Don’t Owe…
You’ll need to file for an extension if:
•	 You are due a refund, or
•	 You don’t expect to owe any tax when filing your tax return, and
•	 You are unable to file your return by April 15, 2024.
There are two ways to accomplish this:
•	 If you have a federal extension (you filed Form 4868, or made
an extension payment via an electronic filing method), you
automatically have an extension with Indiana and do not have to
file for a separate state extension (Form IT-9).
•	 If you do not have a federal extension, file Form IT-9 by April 15,
2024.
Extension Filing Deadline
Both state Form IT-9 and federal Form 4868 extend your state filing
time to Nov. 15, 2024.
Will You Owe Penalty and/or Interest?
Penalty will not be owed if you have:
•	 Paid 90% of the tax you expect to owe by April 15, 2024,
•	 Filed your tax return by Nov. 15, 2024, and
•	 Paid any remaining amount due (including interest) with that
filing.
Interest is owed on all amounts paid after April 15, 2024. See page
12 for instructions on how to figure interest.
Indiana’s Extension of Time to File, Form IT-9
Pay electronically using DOR’s e-services portal, the Indiana Taxpayer
Information Management Engine (INTIME), by visiting intime.dor.
in.gov. INTIME offers customers the ability to manage their accounts
in one convenient location, 24/7. Alternatively, you may access Form
IT-9 online at www.in.gov/dor/tax-forms/2023-individual-incometax-forms. You may file Indiana’s Application for Extension of Time to
File online if you make a payment with it by April 15, 2024.
Where to Report Your Extension Payment
Add your state extension payment to any estimated tax paid. Report
the total on Schedule F, line 4.
Military personnel on duty outside of the United States and Puerto
Rico on the filing due date are allowed an automatic 60 day extension
of time to file. A statement must be enclosed with the return verifying
that you were outside of the United States or Puerto Rico on April 15,
2024.
Military personnel in a presidentially declared combat zone have an
automatic extension of 180 days after they leave the combat zone. In
addition, if they are hospitalized outside the United States because of
such service, the 180-day extension period begins after being released
from the hospital. The spouse of such service member must use the
same method of filing for both federal and Indiana (e.g. single or
joint). When filing the return, write “Combat Zone” across the top of
the form (above your Social Security number).

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IT-40PNR Booklet 2023

Nonresidency and Income Taxable to
Indiana

A part-year resident owes tax on taxable income received from
all sources while being a resident of Indiana. A part- or full-year
nonresident also owes tax on income from Indiana sources as listed
below while a legal resident of another state.
Indiana income includes income from the following sources:
1.	 Winnings from Indiana casinos, pari-mutuel wagering, and
lotteries;
2.	 Labor or services performed in Indiana, including salaries, wages,
tips, commissions, etc.;
3.	 A farm, business, trade or profession doing business in Indiana;
4.	 Any real or personal property located in Indiana, including any
income from the sale or exchange of property located in Indiana;
5.	 A partnership or an S corporation doing business in Indiana;
6.	 Stocks, bonds, notes, bank deposits, patents, copyrights, secret
processes and formulas, goodwill, trademarks, trade brands,
franchises, and other property where earnings are a part of an
Indiana business;
7.	 Income from trusts and estates derived from Indiana sources and
distributed to nonresident heirs; and
8.	 Pensions and most interest and dividends are taxed by your state
of residence when you receive them.
Note. If you were a full-year nonresident and your only income
from Indiana sources was from pensions, interest and/or dividends
(which were not a basic part of the business in Indiana) and/or
unemployment compensation, you are not required to file an Indiana
income tax return.

Special Information for Nonresidents Receiving
Income from Pass-Through Entities

Partnerships, S corporations, and trusts and estates located in and/or
doing business in Indiana are required to:
•	 File an annual return, Form IT-65/Form IT-20S/Form IT-41;
•	 Withhold Indiana state and county (when applicable) income
tax on behalf of their nonresident partners/shareholders/
beneficiaries*; and,
•	 Figure and pay (with the filing of that annual return and Schedule
Composite) Indiana state and county income tax due on their
individual nonresident partners/shareholders/beneficiaries.*
* This withholding requirement does not apply to the residents of
Arizona, Oregon, and Washington D.C., who are subject to and pay
income taxes at rates of 3.15% (.0315) or higher to their resident state.
Individuals who are included on the entities’ Schedule Composite are
not required to file an individual income tax return to report income
from those entities with three exceptions:
Exception 1. Form IT-40PNR must be filed and all taxable income
reported if the pass-through entity withholds county tax on the
nonresident partner, shareholder and/or beneficiary. See Form IT-65/
IT20S Schedule IN K-1, Part 1, line 12, or Form IT-41 Schedule IN
K-1, Part 1, line 12.

Exception 2. Form IT-40PNR must be filed and all taxable income
reported if the individual has other taxable Indiana-source income
that is not included on a Schedule Composite.
Exception 3. Form IT-40PNR must be filed if the individual completed
Schedule IN-COMPA.
If you have any other Indiana-source income, you are required to file
Form IT-40PNR, reporting both that income and any income already
reported and taxed on Form IT-65/IT-20S/IT-41 (i.e., all Indianasource income).
Any reference to Schedule Composite also includes Schedule PTET if
the pass-through entity pays or credits PTET to partners/shareholders/
beneficiaries.

Reciprocal States: Special Filing and Income
Reporting Instructions

If you are a resident of Kentucky, Michigan, Ohio, Pennsylvania or
Wisconsin, and:
•	 You received wages, salaries, tips, or commissions from Indiana,
you will not owe Indiana adjusted gross income tax on that
income. However, you may owe a county tax. If this is the only
type of income you received from Indiana, you should file Form
IT-40RNR, reciprocal nonresident Indiana individual income
tax return. See the “Need Tax Forms or Information Bulletins?”
section on page 3 for options; or
•	 You received other types of Indiana-source income besides wages
tips, salaries or commissions (see items 1 through 8 above), you
must file Form IT-40PNR instead of Form IT-40RNR; or
•	 You received both Indiana-source income (see items 1 through
8 above) and wage income from Indiana, you must file form IT40PNR. The wage income will not be subject to Indiana adjusted
gross income tax. However, see the county tax instructions for
Reciprocal state residents on page 58 if these wages were
earned in an Indiana county.
Example. Fred and Deanna are full-year residents of Michigan, and
filed a 2023 joint federal income tax return. During 2023 Fred received
$10,000 winnings from an Indiana casino, and Deanna earned $55,000
wage income from an Elkhart, Indiana employer. Fred’s casino
winnings will be taxed by Indiana. Enter Fred’s $10,000 winnings on
Indiana Schedule A, line 20, Columns A and B. Deanna’s wage income
is not subject to Indiana adjusted gross income tax. Therefore, enter
Deanna’s wage income in Column A only.
Note. See county tax instructions for Reciprocal state residents on
page 58 to determine if county tax is due on her wage income.

Completing Form IT-40PNR
Line 1 – Income Taxed by Indiana

Complete Indiana Schedule A: Income or Loss; Proration; and
Adjustments to Income. Instructions for Schedule A begin on page
13. Carry the line 36B amount to line 1 on the front of Form IT40PNR. Make sure to enclose Schedule A when filing.

Line 2 – Add-Backs

Enter on this line any add-backs from Schedule B: Add-Backs.
Instructions for Schedule B begin on page 17. Make sure to enclose
Schedule B when filing.

Line 4 – Deductions

Enter on this line any deductions from Schedule C: Deductions.
Instructions for Schedule C begin on page 21. Make sure to enclose
Schedule C when filing.

Line 6 – Exemptions

Enter any exemptions from Schedule D: Exemptions on this line.
Instructions for Schedule D begin on page 29. Make sure to enclose
Schedule D when filing.

Line 9 – County Tax

Complete Schedule CT-40PNR to figure your county tax. Instructions
for Schedule CT-40PNR begin on page 56.

Line 10 – Other Taxes

Enter any other taxes from Schedule E: Other Taxes on this line.
Instructions for Schedule E begin on page 34. Make sure to enclose
Schedule E when filing.

Line 12 – Credits

Enter your credits from Schedule F: Credits on this line. Instructions
for Schedule F begin on page 36. Make sure to enclose Schedule F
when filing.

Line 13 – Offset Credits

Enter the total of any offset credits reported on Schedule G: Offset
Credits on this line. Instructions for Schedule G begin on page 42.
Make sure to enclose Schedule G when filing.

Line 17 – Donation Check-Offs

Enter on this line the total of any donations made on Schedule INDONATE. Make sure to enclose Schedule IN-DONATE, which is
located at the bottom of Schedule F: Credits, when filing. See page
39 for more information.

Line 19 – Amount to be Applied as a 2024 Estimated
Tax Installment Payment

You should pay estimated tax during the 2024 tax year if:
•	 You have income that will not be subject to Indiana tax
withholding, or
•	 You think the amount withheld will not be enough to pay your tax
liability, and
•	 You expect to owe more than $1,000 when you file your tax return.
The simplest and most efficient way to pay quarterly estimated taxes
is by using INTIME at intime.dor.in.gov. INTIME offers a quick, safe
and secure way to submit estimated payments, while providing the
option to schedule payments and view payment history. By using
this method, customers receive a confirmation number immediately
without having to wait for mail to arrive or checks to clear.
INTIME also provides the option to schedule all four estimated
payments, up to a year in advance, to avoid penalties and never miss
a deadline again. Any awaiting payment(s) in INTIME will remain
IT-40PNR Booklet 2023

Page 9

“pending” until the scheduled payment date enabling customers to
make changes or cancel at any time leading up to that date.
Instructions on how to make estimated payments using INTIME
are available in the INTIME User Guide for Individual Income Tax
Customers at www.in.gov/dor/files/intime-individual-guide.pdf.
Beginning in 2024, if you file your individual return electronically,
DOR will accept direct debit of up to four estimated payments.
Alternatively, you may visit our website at www.in.gov/dor/taxforms/2023-individual-income-tax-forms to get Form ES-40. Use the
worksheet on Form ES-40 to see how much you will owe. Then, if you
have an overpayment showing on line 18 of your tax return, you can
have some or all of the overpayment applied to next year’s estimated
tax account. To do so, enter any portion of the overpayment:
•	 On line a, if you want to apply an amount to offset estimated
county tax due (from Form ES-40 worksheet, line K). Also, enter
the 2-digit county code from line K; and/or
•	 On line b, if your spouse lived in a different county than you did
on Jan. 1, 2024, and you want to apply an amount to offset your
spouse’s estimated county tax due (from Form ES-40 worksheet,
line L). Also, enter the 2-digit county code from line L; and/or
•	 On line c, if you want to apply an amount to offset your estimated
state tax due (from Form ES-40 worksheet, line J).
Example. Mark and Megan have a $420 overpayment, and want to
apply $300 of it to their 2024 estimated tax account. Their worksheet
from Form ES-40 has the following breakdown:
•	 Line I (each installment payment) is $300;
•	 Line J (portion that represents state tax due) is $270; and
•	 Line K (portion that represents county tax due) is $30.
They will enter $30 on line 19a (along with their 2-digit county code),
$270 on line 19c, and the $300 total amount to be applied will be
entered on line 19d. They will get a $120 refund ($420 overpayment
minus $300 applied to their 2024 estimated tax account).

Note. You may complete and mail the ES-40, Estimated Tax Payment
form, along with your payment to DOR’s return address on the form.
Estimated payments can also be made online with an electronic bank
payment (ACH/e-check) or Visa, MasterCard and Discover debit or
credit cards by using DOR’s e-services portal, the Indiana Taxpayer
Information Management Engine (INTIME), at intime.dor.in.gov. See
line 26 instructions on page 12 for details about payment options.
See Income Tax Information Bulletin #3 at www.in.gov/dor/files/
reference/ib03.pdf for additional information about estimated taxes.

Line 20 – Penalty for Underpayment of Estimated Tax

You might owe a penalty for the underpayment of estimated tax if you
did not have taxes withheld from your income and/or you did not pay
enough estimated tax throughout the year.
In fact, not properly paying estimated tax is one of the most common
errors made in filing Indiana tax returns. Generally, if you owe $1,000
or more in state and county tax for the year that’s not covered by
withholding taxes, you need to be making estimated tax payments.
You might owe this penalty if:
•	 The total of your credits, including timely made estimated tax
payments, is less than 90% of this year’s tax due or 100% of last
year’s tax due, ** or
•	 You underpaid the minimum amount due for one or more of the
installment periods.
If either of these cases apply to you, you must complete Schedule
IT-2210 or IT-2210A to see if you owe a penalty or if you meet an
exception.
•	 If you owe this penalty, complete Schedule IT-2210 or IT-2210A
and write the penalty amount on Form IT-40PNR, line 20.
•	 If you meet an exception, complete Schedule IT-2210 or IT-2210A
to show which exception was met.
Include the completed form with your submission.

Example. Stu wants to pay $500 in estimated tax for each installment
period. He has a $30 overpayment on his tax return. He chooses to enter
the full $30 overpayment on line 19c (Indiana adjusted gross income
tax amount), and carries it to line 19d. (He may pay the $470 additional
amount by using INTIME to make a secure electronic payment, or by
printing Form ES-40 and filing it along with a check or money order.)

*You must have timely paid 100% of lines 8 and 9 of your 2022 IT-40
or IT-40PNR. Note: If last year’s Federal adjusted gross income was
more than $150,000 ($75,000 for married filing separately), you must
pay 110% of last year’s tax (instead of 100%) to meet this exception.

Important. Estimated tax installment payments made for the 2024 tax
year are due by:
•	 April 15, 2024 (1st installment)
•	 June 17, 2024 (2nd installment)
•	 Sept. 16, 2024 (3rd installment)
•	 Jan. 15, 2025 (4th installment)

Important. DOR will compute and assess the underpayment penalty
where appropriate based on filing history and tax due.

Any installment payment amount entered on line 19d will be
considered to be paid on the day your tax return is filed (postmarked).
For instance, an installment payment shown on a return filed on: April
15, 2024, will be considered to be a 2024 first installment payment;
June 3, 2024, will be considered to be a 2024 second installment
payment; and July 22, 2024, will be considered to be a 2024 third
installment payment.
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IT-40PNR Booklet 2023

**Farmers and fishermen should see the special instructions on page 11.

Should You Use Schedule IT-2210 or Schedule IT-2210A?
Schedule IT-2210 should be used by individuals who receive income
(not subject to withholding tax) on a fairly even basis throughout the
year. This schedule will help determine whether a penalty is due, or
whether an exception to the penalty has been met.

Example. Jim and Sarah together received $4,500 in pension income
each month. Since their income is received on a fairly even basis,
they’ll use Schedule IT-2210 to figure their penalty or exception to the
penalty.

Farmers and fishermen have special filing considerations. If at least
two-thirds of your gross income is from farming or fishing, complete
Schedule IT-2210, using the Section D Short Method.

tax carryover amount on line 19d is limited; it cannot be greater than
the remainder of line 18 minus line 20. See the second example about
Stu under the Line 19 instructions on page 10.

Schedule IT-2210A may be used by individuals who receive income
(not subject to withholding tax) unevenly during the year. Also use
this form if you had substantial changes in withholding during the
year. See Income Tax Information Bulletin #3 available at www.in.gov/
dor/files/reference/ib03.pdf for further information. This schedule will
help determine whether a penalty is due, or whether an exception to
the penalty has been met.

A Note About Refund Offsets

Example. Bill’s income is from selling fireworks in June and July. He
will want to figure any penalty due on Schedule IT-2210A, which may
exempt him from having had to pay estimated tax on the April 15,
2023, first installment due date.

When to Expect Your Refund

Example. Rachael received a sizable lump sum distribution in
December of 2023. She figured how much estimated tax was due, and
paid it in full by the Jan. 16, 2024, fourth period installment due date.
By completing Schedule IT-2210A, she shows she owes no penalty
for the first three installment periods, and that a proper payment was
made for the fourth installment period. She will owe no penalty.

A refund may take longer under certain circumstances. The most
common incidents are when businesses supply withholding statements
(such as W-2, 1099-R, Schedule IN K-1, etc.) late and when the return
reports a Schedule C loss.

Farmers and Fishermen.
Special options are available if more than two-thirds of your gross
income for 2022 and/or 2023 was from farming or fishing.
Option 1. Pay your estimated tax in one payment on or before Jan. 16,
2024, and file your tax return by April 15, 2024; or
Option 2. Make no estimated tax payment and file your tax return and
pay all the tax due by March 1, 2024.
Example. More than two-thirds of Henry’s gross income is from
farming. He should complete Schedule IT-2210. Henry will be able
to use the Section D Short Method to figure his penalty or to show he
meets an exception to owing a penalty.
Example. Henry had two-thirds of his income for 2021 from farming.
In 2022 and 2023, Henry had less than two-thirds of his income from
farming or fishing. Henry can use the special option for farmers or
fisherman for 2022 because two-thirds of his previous-year income
(2021) was from farming or fishing. Henry cannot use the special
option for 2023 because less than two-thirds of his income for both
2022 and 2023 was from farming or fishing.
Visit our website at www.in.gov/dor/tax-forms/2023-individualincome-tax-forms to get Schedule IT-2210 or Schedule IT-2210A.

Line 20a

Enter Code A if you are computing your penalty using Form IT-2210A.
Enter Code F if you are reporting estimated tax as a farmer or a fisherman.

Line 21 – Refund

You have a refund if line 18 is greater than the combined amounts
entered on lines 19d and 20.
Important. If the combination of line 19d plus line 20 is greater than
the amount on line 18, you must make an adjustment. The estimated

Indiana law requires that money you owe to the state, its agencies,
and certain federal agencies, be deducted from your refund or credit
before a refund is issued. This includes money owed for past-due
taxes, student loans, child support, food stamps or an IRS levy. If
DOR applies your refund to any of these debts, you will receive a letter
explaining the situation.
Generally, 10 to 14 business days is the average wait for a refund if
the tax return is electronically filed; it can take up to 12 weeks for the
refund to be issued if you mail a paper tax return.

Where’s Your Refund?

There are several ways to check the status of your refund. You will
need to know the exact amount of your refund, and a Social Security
number entered on your tax return. Then, do one of the following:
•	 Go to www.in.gov/dor/individual-income-taxes/check-the-statusof-your-refund and click Check the Status of Your Refund.
•	 Call 317-232-2240 for automated refund information; to speak to
a representative, please call during regular business hours, 8 a.m.
to 4:30 p.m., Monday - Friday.
•	 Go to INTIME at intime.dor.in.gov and click “Where’s my refund?”
A refund directly deposited to your bank account may be listed on
your bank statement as a credit, deposit, etc. If you have received
information from DOR that your refund has been issued, and you are
not sure if it has been deposited in your bank account, call the ACH
Section of your bank or financial institution for clarification.
Important. If we are unable to deposit your refund to the listed
account (incorrect/incomplete account numbers; account closed;
refund to go to an account outside the United States; etc.), DOR will
mail a paper check to the address on the front of the tax form.
Note. A refund deposited directly to your Hoosier Works MasterCard
account will appear on your monthly statement.

Statute of Limitations for Refund Claims

There is a statute of limitations when filing for a refund of overpaid
taxes for tax year 2023. In general, a claim for refund must be made
by April 15, 2027 (Nov. 15, 2027 if filing under extension). The claim
for refund is considered to be made on the day your tax return
is postmarked. If you file your 2023 tax return after the statute of
limitations has expired, no refund will be issued.

Line 22 – Direct Deposit

You may choose to have your refund deposited in your checking, savings
or Hoosier Works Master Card account. If you want your refund directed
into your checking or savings account, complete lines 22 a, b, c and d.
IT-40PNR Booklet 2023

Page 11

Caution. If you choose this option, make sure to verify the account
information after you have entered it. This will help ensure your
refund is deposited into your desired account.
The routing number is nine digits, with the first two digits of the
number beginning with 01 through 12 or 21 through 32. Do not use a
deposit slip to verify the number because it may have internal codes as
part of the actual routing number.
The account number can be up to 17 digits. Omit any hyphens, accents
and special symbols. Enter the number from left to right and leave any
unused boxes blank.
Check the appropriate box for the type of account you are making
your deposit to: either a checking account or savings account.
To comply with banking rules, you must place an X in the box on line
d if your refund is going to an account outside the United States. If you
check the box, we will mail you a paper check.
If you currently have a Hoosier Works MasterCard and wish to have your
refund directly deposited in your account, enter your 12-digit account
number on line 22b, where it says “Account Number” (do not write anything
on line 22a “Routing Number”). You can find your 12-digit account number
in the upper right-hand corner of your account monthly statement.
Note. DO NOT use your MasterCard 16-digit number. Make sure to
check the “Hoosier Works MC” box on line 22c.
For more information on direct deposit, please see “Where’s Your
Refund?” on page 11.

Line 23

If line 21 is less than zero, you have an amount due. Enter here as a
positive number and skip to line 24.
OR
If line 15 is greater than line 14, complete the following steps:
Subtract line 14 from line 15 and enter the total here... A___________
Enter any amount from line 20..........................................B___________
Add lines A + B. Enter total here and on line 23.............C___________

Line 24 – Penalty

You may owe a penalty if your tax return is filed after the April 15,
2024 due date and you have an amount due. Penalty is 10% of the
amount due (line 23 minus line 20) or $5, whichever is greater.
Exception. No penalty will be due if you have:
•	 An extension of time to file,
•	 Are filing and paying the remaining tax due by the extended filing
due date, and
•	 Have prepaid at least 90% of the amount due by April 15, 2024.

Line 25 – Interest

You will owe interest (even if you have an extension of time to file) if
your tax return is filed after the April 15, 2024, due date and you have
an amount due. Interest should be figured on the sum of line 23 minus
line 20. Contact DOR at 317-232-2240 or visit our website at www.
in.gov/dor/files/reference/dn03.pdf to get Departmental Notice #3 for
the current interest rate.
Page 12

IT-40PNR Booklet 2023

Line 26 – Amount Due – Payment Options
There are several ways to pay the amount you owe.

Electronic payments can be made via DOR’s e-service portal, the
Indiana Taxpayer Information Management Engine (INTIME), at
intime.dor.in.gov. INTIME offers customers the ability to manage
their accounts in one convenient location, 24/7. Accepted forms of
payment via INTIME include electronic bank payment (ACH/echeck), Visa, MasterCard and Discover debit or credit cards.
No fees are assessed for electronic bank payments. Fees apply to
payments made with credit or debit cards. You do not need to
logon to INTIME to make payments. Simply select the “Make a
Payment” option on the page. An INTIME User Guide for Individual
Income Tax Customers is available at www.in.gov/dor/files/intimeindividual-guide.pdf to help you through the process.
Another option is to mail your payment to:
Indiana Department of Revenue
P.O. Box 7224
Indianapolis, IN 46207-7224
You may pay in person at one of DOR’s district offices with cash, but
with the exact amount only. Other in-person options include paying
with a money order, cashier’s check or personal check made payable
to DOR.
Note. All payments to DOR must be made with U.S. Funds.
Payment plan option. If you cannot pay the full amount due at the
time you file, you may be eligible to set up a payment plan online
using DOR’s e-services portal, the Indiana Taxpayer Information
Management Engine (INTIME), at intime.dor.in.gov. INTIME offers
customers the ability to manage their tax account(s) in one convenient
location, 24/7. Create an INTIME logon to manage your account,
make payments, establish payment plans, and more. After your return
finishes processing, a payment plan can be established.
Important. If using the payment plan option, penalty and interest will
be due on all amounts paid after the April 15, 2024, due date.
If you have questions, contact DOR in one of three ways:
•	 Use the secure messaging feature in the Indiana Taxpayer
Information Management Engine (INTIME). If you are not
registered, create an online account at intime.dor.in.gov. Select
“New to INTIME? Sign up” and follow instructions to complete
the process. You will need your taxpayer ID (FEIN, SSN, etc.) and
the unique Letter ID, printed in the upper-right hand corner of
this letter. Once logged in, select “Respond to a letter, notice, or
bill” under the “All Actions” menu.
•	 Call DOR Customer Service at 317-232-2240, Monday through
Friday, 8 a.m. - 4:30 p.m. EST.
•	 Correspond with DOR via mail using this address:
Indiana Department of Revenue
100 N. Senate Ave.
Indianapolis, IN 46204-2253

Schedule A

Returned Checks and Other Types of Payments

If you make a tax payment with a check, credit card, debit card,
electronic funds transfer, or any other instrument in payment by any
commercially allowable means, and DOR is unable to obtain payment
for its full amount when it is presented for payment through normal
banking channels, a $35 penalty will be assessed.
The assessed amount will be due immediately upon receipt of the tax
due notice and must be paid by certified check, bank draft or money
order. Note. Any permits and/or licenses issued by DOR may be revoked
if the assessed amount is not paid immediately.

Signatures and Signing Dates

First, read the Authorization area on Schedule H. Then, sign and date
the tax return. If this is a jointly filed tax return, both you and your
spouse must sign and date it. Make sure to enclose the completed
Schedule H when filing.

Taxpayer Advocate

As prescribed by the Taxpayer Bill of Rights, DOR has an appointed
Taxpayer Advocate whose purpose is to facilitate the resolution of
taxpayer complaints and complex tax issues. If you have a complex tax
issue, you must first pursue resolution through normal channels, such
as contacting the customer service division at 317-232-2240. If you
are still unable to resolve your tax issue, or a tax assessment places an
undue hardship on you, you may receive assistance from the Office of
the Taxpayer Advocate.
For more information, and to get required schedules if filing for an
offer in compromise or a hardship case, visit our website at: www.
in.gov/dor/contact-us/tao. You may also contact the Office of the
Taxpayer Advocate directly at [email protected], or by telephone
at 317-232-4692. Submit supporting information and documents to:
Indiana Department of Revenue, Office of the Taxpayer Advocate, P.O.
Box 6155, Indianapolis, IN 46206-6155.

Where to Mail Your Tax Return
If you are enclosing a payment, please mail your tax return with all
enclosures to:
Indiana Department of Revenue
P.O. Box 7224
Indianapolis, IN 46207-7224
For all other filings, please mail your tax return with all enclosures to:
Indiana Department of Revenue
P.O. Box 40
Indianapolis, IN 46206-0040

Schedule A
Sections 1, 2 and 3 Instructions

Sections 1, 2 and 3 will help you to separate the income to be taxed
and adjustments to be allowed by Indiana.

General Information

Income received from Indiana sources should be reported as Indiana
income by nonresidents, except certain types of Indiana-source
income that are subject to tax only by your state of residence at the
time you receive it.
For part-year residents, the portion of the following types of income
from Indiana sources that were received while a nonresident should
not be reported as income taxed by Indiana: interest from bonds,
dividends, unemployment compensation, and gains from the sale of
stock, bonds, or other securities. However, gains from real or tangible
personal property located in Indiana should be reported as income
taxed by Indiana. In addition, if you receive income from a pass
through entity (e.g., an S corporation or partnership) that conducts
business in Indiana, your share of the entity’s income derived from
Indiana sources should be reported as income taxed by Indiana.
For full-year nonresidents, the portion of the following types of
income from Indiana sources should not be reported as income
taxed by Indiana: interest from bonds, dividends, unemployment
compensation, and gains from the sale of stocks, bonds, or other
securities.
Example. The distributive share of income received from an
S corporation doing business in Indiana must be reported by
nonresidents as income taxable in Indiana to the extent the S
corporation is doing business in Indiana.
Example. Interest income received by an Illinois resident from an
Indiana personal savings account is not income taxable to Indiana.
Read the following line-by-line instructions for more information.
Also, see Income Tax Information Bulletin #28 at www.in.gov/dor/
files/reference/ib28.pdf for more information.

Important Information about Possible Year-End
Federal Legislation

This publication was finalized before all year-end federal legislative
changes were complete. Therefore, some of the income/loss and
adjustments reported may need to be adjusted.
You may wish to periodically check DOR’s homepage at www.in.gov/
dor for updates about any impact of late federal legislation.

How to Report a Loss

When reporting a loss or negative entry, use a negative sign.
Example. Write a $125 loss as -125.

IT-40PNR Booklet 2023

Page 13

Schedule A, Section 1: Income or Loss

Schedule A
Section 1: Income or Loss

You must complete your federal income tax return first.
Unless otherwise stated:
•	 Enter in Column A your income and adjustments as they appear
on your federal return, Form 1040/1040-SR; and
•	 Enter in Column B the portion of your income and adjustments
that is subject to Indiana income tax.

Lines 1 and 2 – Wages, Salaries, Tips, Etc.

Enter wages, salaries, tips, other compensation, and any other amounts
entered on Lines 1a through 1h. You should report your income on
line 1 and your spouse’s income on line 2. Enter in Column B income
received while you were an Indiana resident, and/or income from
Indiana sources received while you were not an Indiana resident.
Note for part-year or full-year nonresidents. Do not enter that
portion of your Indiana source wage, salary, tip or commission
income in Column B earned while you were a resident of a reciprocal
agreement state (see Reciprocal States: Special Filing and Income
Reporting Instructions on page 9).

Lines 3 and 4 – Interest and Dividend Income

Enter in Column A your taxable interest and dividend income as
reported on your federal return, lines 2b and/or 3b, and report the
interest and dividend income attributable to Indiana in Column B.
If any of the interest reported in Column B is from U.S. government
obligations, including U.S. savings bonds, Treasury notes, T-Bills,
etc., you may deduct these amounts on Form IT-40PNR, Schedule C,
line 4.
Interest from municipal obligations. Do not report any interest
from municipal obligations on line 3. However, if you were an Indiana
resident when receiving interest from a non-Indiana municipal
obligation, see OOS municipal obligation interest add-back on page
18 to see if you are required to add it to your Indiana income to be
taxed. See Income Tax Information Bulletin #19 at www.in.gov/dor/
files/reference/ib19.pdf for more information.

Line 5 – Taxable Refunds, Credits or Offsets

Line 7 – Business Income or Loss

Enter in Column A the business income from Schedule C that is reported
on federal Schedule 1, line 3. Enter in Column B that portion of business
income subject to tax in Indiana. Also, see the instructions for:
•	 Tax Add-Back on Schedule B, line 1, on page 17,
•	 Apportionment on line 19 if this income is from a business doing
business both within and outside Indiana, and
•	 Other Income on line 20.

Line 8 – Capital Gain or Loss from Sale or Exchange
of Property
Enter in Column A the capital gain or loss from federal Schedule
D that is reported on federal Form 1040/1040-SR, line 7. Enter in
Column B that portion received while you were an Indiana resident
and/or from the sale or exchange of property located in Indiana.

Note. Any capital loss claimed is subject to the same capital loss
limitations that apply for federal tax purposes. For more information
about federal capital loss limitations, get federal Schedule D, Capital
Gains and Losses.

Line 9 – Other Gains or Losses from Form 4797

Enter the gain or loss from the sale or exchange of property as
reported for federal tax purposes on federal Schedule 1, line 4. Enter
in Column B that portion received:
•	 If the property was Indiana property, and/or
•	 While you were an Indiana resident, regardless of the source.

Line 10 – IRA Distributions

Enter in Column A the taxable portion of the IRA distribution
reported on your federal Form 1040/1040-SR, line 4b. Enter in
Column B that portion received while you were an Indiana resident.

Line 11 – Pensions and Annuities

Enter in Column A the taxable portion of all pensions, annuities and
other retirement income as reported on your federal Form 1040/1040SR, line 5b. Enter in Column B that portion received while you were
an Indiana resident.
Note. You will be eligible for a deduction if you included any railroad
retirement benefits issued by the U.S. Railroad Retirement Board on
this line in Column B. See Schedule C, line 6 instructions for more
information.

Enter in Column A the amount of taxable refunds, credits or offsets
of state and local income taxes that was reported on your federal
Schedule 1, line 1. Enter in Column B that portion received while you
were an Indiana resident.

Line 12 – Net Rent or Royalty Income or Loss

Line 6 – Alimony Received

Enter in Column B the net royalty income/loss:
•	 Received while you were an Indiana resident; and
•	 Received while you were an Indiana nonresident if the income/loss
results from the conduct of a trade or business conducted in Indiana.

Lines 7, 12 – 16

Enter in Column B the net rental income/loss