Indiana state tax basis is the Federal Adjusted Gross Income (AGI).
Interest/Divident Income: Interest and Divident income from U.S. government bonds are exempt from State Taxes.
Rent Income: Same as federal.
Capital Gain: The Capital Gains are treated similar to Federal Taxes for State Taxes.
Unemployment Income: Limited exclusion as provided under 1986 federal law.
Social Security Benefits: All social security income is exempt from state taxes.
State Bond Interest: State bond interest income is exempt from state taxes.
Health Savings Accounts: Same as federal.
Disability: Up to $5,200 exempt if retired and under 65.
Lottery: Limited exemption for Indiana lottery winnings.
Federal Income Tax: Not deductible.
Other Taxes: Deductions for rent and property taxes paid on principal residence, insulation, non-Indiana locality earnings, certain income of enterprise/airport development zone employees, income of persons receiving Medicaid in a care facility, law enforcement awards, Indiana Partnership long-term care insurance premiums, and employer contributions to and interest on certain medical savings accounts not excluded for federal purposes. Domestic production activities deducted for federal tax purposes and state taxes based on income are not deductible.*Exclusion of up to $5,200 in the case of disability retirement.
Check other state tax links below.