Nonrefundable credit carryforward: 1040 Indiana (IN)

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Nonrefundable credits calculate against state income tax on Schedule 6 or Schedule G in the following order:

  1. Credit for taxes paid to other states and countries
  2. Schedule IN-529 credit
  3. Adoption Credit
  4. Public School Educator Expense Credit
  5. Other credits reportable on Schedule 6 or Schedule G based on the order that they appear in the Other credits section on the INCr screen
  6. Credits with 4-digit code reportable on Schedule IN-OCC based on the order in which they appear in the Other credits section on the INCr screen
  7. Credits with 3-digit code reportable on Schedule IN-OCC based on the order in which they appear in the Other credits section on the INCr screen
  8. Community Revitalization Enhancement District Credit

Nonrefundable credits are limited to the amount of state income tax available after considering previous credits. Use the Other credits section in the INCr screen to calculate nonrefundable credits you have not entered elsewhere and to track nonrefundable credit carryovers to next year. Use the following fields as needed:

  • Code - Choose the type of credit. This amount proformas from last year. The Indiana Adoption Credit calculates based on information for children on federal Form 8839, Unit 1. If there are more than three children on From 8839, use code 859 to force the Adoption Credit amount eligible for Schedule 6 or G. 
  • Carryforward from Prior years - Enter any unused portion of credit that was eligible to carry over from the previous year. If there was an amount entered in this section last year, it will proforma.
  • Amt Generated Current Year - Enter the amount of new credit generated this year.
  • Amount available - This column totals the amounts in the Carryforward from Prior years and Amt Generated Current year
  • Amt to use on Sch 6/G - This field updates automatically with the Amount available. If total credits exceed state income tax after applying other credits (IT-40, Page 2), change this amount to the amount you are claiming on the return.
  • Eligible to carryforward? - If there is an unused portion of the credit, enter so that it will carry over to the next year. 
  • Amount to Carry Forward - If you indicated that the credit was eligible to carry over, the difference between the amount available and the amount to use on the current year calculates in this field and will carry over to next year.
  • Expiration year - This does not appear on the return, but you can use it to help sort the credits you enter in this section since Schedule 6/G uses them in the order you enter them in this section.
  • Prior year Certification Number - This carries over from last year.
  • Current Year Certification Number -  This information is reported on Schedule IN-OCC. To last year's number, mark the use Prior Year Certification Number field. 

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