Hidden in the Nooks and Crannies: Indiana Tax Deductions

When tax season comes around, we are all looking for every deduction we can get our hands on. Here’s a rundown of some of the most popular deductions.

The most commonly claimed tax deductions are homeowners’ and renters’ deductions, according to the Tax Talk blog by the Indiana Department of Revenue. For residents and off-campus college students, rent paid throughout the year can be claimed up to $3,000 as long as the property is subject to Indiana’s property tax. For houses, the amount of property tax paid or $2,500, whichever is less, can be claimed on the homeowners’ deduction, according to Indiana tax law. However, there are exemptions to the Indiana property tax, you cannot claim a renters’ or homeowners’ deduction if:
      –  You live in government owned housing
      –  Your property is owned by a nonprofit organization
      –  You live in student housing (on-campus dorms or apartments)
      –  Your property is owned by a cooperative association
      –  Your property is located outside of Indiana

While these two deductions apply to a large number of tax payers, the state of Indiana allows for 20 other deductions that could save you more during this recession.

A few of these deductions include:
      –  The disability retirement deduction for those who retired on disability
      –  The military service deduction for active, reserve and retired veterans
      –  The deduction for installing new insulation, weather stripping or window panes during the year

Many people do not claim all of their deductions each year because they are unaware of what they qualify for, but with services like the Free Community Tax Service provided by the Financial Stability Alliance and United Way of Monroe County, taxpayers in Monroe, Brown, Greene and Owen counties can claim some extra money when tax time rolls around. More information on taxes in Indiana can be found here.