INDIANAPOLIS (Inside Indiana Business) – The Indiana Department of Revenue is making several tax changes for individuals for the 2023 tax filing season. The amendments include rate changes for the earned income credit, adoption credits, and a new form for Hoosiers with more than one wage statement.
Additionally, the DOR says low-income residents who received social security income in 2022 will need to file a tax return in order to claim the $200 Automatic Taxpayer Refund.
The Indiana income tax credit rate is increasing from 9% to 10% of the federal EIC. The DOR says there are some differences between the Indiana credit and the federal credit, particularly for married individuals filing jointly and individuals with three or more qualifying children.
Indiana’s adoption tax credit is also increasing from 10% to 20% of the federal adoption credit, or $2,500 (up from $1,000). The DOR says if the credit is claimed for multiple children, the DOR says the credit and limitation is computed separately for each child.
The DOR also released the new Schedule IN-W form; Hoosiers with more than one wage statement will need to list all wage statements on the new Schedule IN-W form.
Hoosiers can claim a $200 Automatic Taxpayer Refund as a tax credit if they were not eligible for last year’s refund, received social security benefits in 2022, and are not claimed as a dependent on someone else’s tax return. To receive the refund, the DOR says individuals must file an Indiana resident tax return by Dec. 31, 2023, and claim the $200 ATR as a refundable tax credit.