1040-IN: Property tax deduction

Alerts and notices

Indiana allows taxpayers to claim a deduction on Schedule 2 or Schedule C for property taxes paid on primary Indiana residence. For taxpayers with Married Filing Separately status, the Indiana Department of Revenue caps the deduction at half of the maximum amount allowed for a taxpayer filing as Single or Married Filing Joint. 

Note: Taxpayers claiming the Lake County Property Tax Credit may not claim a deduction for property taxes on Schedule 2 or C.

The following information will transfer to to the Property taxes - Amounts paid (Force) statement on the INAdj screen in the Income & Adjustments folder: 

The amounts you enter at the federal level for real estate property taxes paid in 2018 are assumed to be for assessment year 2017 property taxes, payable in 2018. Indiana does not allow a deduction on the 2018 return for property taxes paid in 2018 that are attributable to an assessment year other than 2017. Use this statement to enter amounts different from the calculated amounts.

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