Indiana Tax Residency: Requirements & State Tax Guide
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Overview
Indiana residency requirements and state taxation
Domicile test for full-year residency and Indiana state taxes
The Indiana Department of Revenue (also known as the Indiana state revenue service or Indiana dept of revenue) primarily determines tax residency through the concept of domicile. You're considered a full-year resident if Indiana is your domicile - your true, fixed, and permanent home. This status affects your obligations for Indiana state income tax. Factors indicating domicile include where you vote, have a driver's license, own property, and maintain family connections. Even if you leave temporarily, Indiana remains your domicile unless you establish a new one elsewhere. Understanding your residency status is crucial when you pay Indiana state taxes or make Indiana state tax payments.
183-day test for statutory residency and Indiana salary tax
If you're not domiciled in Indiana, you may still be considered a full-year resident for tax purposes if you maintain a permanent place of abode in the state and spend more than 183 days there during the tax year. This statutory residency test affects your Indiana salary tax obligations. The 183 days need not be consecutive, and partial days generally count as full days. It's important to note that while the Internal Revenue Service (IRS) in Indiana handles federal taxes, state taxes are managed by the Department of Revenue State of Indiana. The state income tax rate for Indiana is a flat rate, but be aware that there are also county tax rates to consider.
Part-year residency and paying Indiana state income tax
You're a part-year resident if you moved your domicile into or out of Indiana during the tax year. In this case, you'll need to file a part-year resident return and report income earned from all sources while an Indiana resident, but only Indiana-source income for the non-resident period. When it's time to pay Indiana state income tax, you can do so through the official Indiana Department of Revenue website. For questions about Indiana state tax payments or Indiana state refunds, you can contact the Indiana Department of Revenue by phone. The Indiana Department of Revenue phone number and the Indiana dept of revenue phone number are available on their official website.
Non-resident obligations and Indiana taxation
Even if you're not an Indiana resident, you may still have tax obligations if you earn income from Indiana sources. Non-residents use Form IT-40PNR to report and pay tax on Indiana-source income. Understanding your residency status is key to determining which income is subject to Indiana taxation. The State of Indiana Internal Revenue Service, also known as DOR Indiana, provides resources to help you understand your obligations. Remember, the Indiana state tax rate applies to taxable income, and you may need to make estimated tax payments throughout the year.
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