1040-IN: Unemployment compensation deductions

Alerts and notices

Overview

Indiana allows deductions on Schedule 2 or C for certain unemployment compensation included in federal AGI.

Non-Railroad Unemployment

The Indiana Unemployment Compensation Worksheet calculates for Unemployment compensation received you enter on the federal Income screen that does not have State Use code 2. The allowable deduction calculated by the worksheet reports as Nontaxable portion of unemployment compensation on Schedule 2 or Schedule C.

Railroad Unemployment

The full amount of Unemployment compensation received you enter on the federal Income screen with IN postal code and State Use code 2 (Railroad Unemployment) reports as a code 624 deduction on Schedule 2 or Schedule C.

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