1040-IN: Allocation and Apportionment (IT-40PNRA)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to access the electronic filing transmission feature in CS Connect.

Thomson Reuters is committed to proactively evolving our security features to help you protect your firm and your clients' data. For more information about multi-factor authentication, see Multi-factor authentication overview.

Overview

For part-year residents and nonresidents, income from a Schedule C, Rental, Farm, or Farm Rental activity can be allocated and/or apportioned to Indiana to determine the amount taxable to Indiana if less than 100 percent of the total income for the activity is taxable in Indiana.

Allocation

For Indiana purposes, UltraTax CS assumes that any Schedule C, Rental, Farm, or Farm Rental income taxable to the residency period is handled via Allocation if less than 100 percent of the total income is taxable to Indiana.

For part-year residents, enter the percentage of income attributable to the residency period via the Multi-state allocation spreadsheet on federal Screens C, Rent, F, or 4835. The amount allocated to the Indiana residency period is included on the AGI Worksheet and on Schedule A, column B for the lines for business income, rental income, or farm income.

For nonresidents, no allocation percentage is entered in the allocation spreadsheet if income is subject to apportionment. The difference between total income and the income allocated to Indiana (if any) is subject to Apportionment to determine the taxable amount from the nonresident period.

Apportionment

The amount of non-allocated income (the difference between total income and the amount allocated to the residency period, if any) transfers to Screen INPNRA in the Income and Adjustments folder. Enter the Within Indiana portion of Total sales field on Screen INPNRA. UltraTax CS uses this information to calculate Schedule IT-40PNRA to determine the portion of income subject to apportionment that is taxable in Indiana. The taxable amount from Schedule IT-40PNRA is reported on Schedule A, column B, line for apportioned income.

If none of the non-allocated income is taxable to Indiana, leave the Indiana factors blank in Screen INPNRA.

Note: The Indiana instate portion of self-employment tax adjustment reported on Schedule A does not account for taxable income from apportionment. Use the AGI Worksheet to override the Self-Employment tax adjustment to report on Schedule A.
Note: UltraTax CS treats an activity as 100 percent allocated to Indiana (and therefore not subject to apportionment) if either of the following apply:
  • The IN postal code is entered in the federal screen and no entry is made in the Multi-state allocation spreadsheet.
  • An entry is made in the Multi-state allocation spreadsheet to allocate 100 percent of federal net income to Indiana.

Related topic: 1040 Indiana frequently asked questions

Share This