Form It-40 - Indiana Full-Year Resident Individual Income Tax Return

Section D: Figure your Credit

This is the maximum allowable income ............................................................................................................ D1 $

12,000

Enter your adjusted income from Section A line A1 ......................................................................................... D2 $ -____________

Subtract line D2 from line D1 and enter the difference here ............................................................................ D3 $ ____________

Multiply line D3 by 3.4% (.034). This is your credit. Enter here and on Form IT-40 line 23 or on Form

IT-40PNR line 21 (if less than zero, enter zero) NOTE: You must attach this schedule to your tax return

to receive the credit ............................................................................ Indiana’s Earned Income Credit

D4 $

Worksheet: Complete only if you were self-employed

If filing a joint return and your spouse was also self-employed or reported income and expenses on federal Schedule C or C-EZ

as a statutory employee, combine your spouse’s amounts with yours to figure the amounts to enter below.

If you are filing federal Schedule SE:

a. Enter the amount from federal Schedule SE, Section A, line 3, or

Section B, line 3, whichever applies .....................................................

b. Enter the amount, if any, from federal Schedule SE, Section B, line 4b

c. Add lines 1a and 1b ...............................................................................

d. Enter the amount from federal Form 1040 line 27 ................................

e. Subtract line 1d from line 1c ............................................................................................................

If you are NOT required to file federal Schedule SE (for example, be-

cause your net earnings from self-employment were less than $400),

complete lines 2a through 2c. But do not include on these lines any

statutory employee income or any amount exempt from self-employment

tax as the result of the filing and approval of federal Form 4029 or

federal Form 4361.

a. Enter any net farm profit or (loss) from federal Schedule F, line 36, and

farm partnerships from federal Schedule K-1 (Form 1065), line 15a ....

b. Enter any net profit or (loss) from federal Schedule C, line 31, federal

Schedule C-EZ, line 3, federal Schedule K-1 (Form 1065), line 15a

(other than farming), and federal Schedule K-1 (Form 1065-B), box 9 .

c. Add lines 2a and 2b. Enter the total even if a loss .........................................................................

If you are filing federal Schedule C or C-EZ as a statutory employee,

enter the amount from line 1 of that federal Schedule C or C-EZ ......................................................

Add lines 1e, 2c and 3. Enter the total here and on Schedule IN-EIC, Section

C, line C3 even if a loss. If the result is a loss, enter it in parentheses ............................................

You will need to complete the above worksheet if you have earnings

from your net profit (federal Schedule SE, line 3 of either Section A or

from self-employment because these earnings are earned income for

Section B, whichever applies). If you do not have to file federal

the credit. You may have earnings from self-employment if:

Schedule SE, your earnings (or loss) from self-employment are the

net profit or loss from your self-employment activities.

You own your own business,

You are a minister or member of a religious order, or

Special procedures for a minister or member of a religious order.

You reported income and expenses on federal Schedule C or C-

If you file federal Schedule SE and the amount on line 2 of that sched-

EZ as a statutory employee.

ule includes an amount that was also reported on federal Form 1040,

line 7, determine how much of the income reported on federal Form

Statutory employee’s earnings. If you reported income and expenses

1040, line 7, was also reported on federal Schedule SE, line 7. If you

on federal Schedule C or C-EZ as a statutory employee, your earnings

received a housing allowance or were provided housing, do not in-

from self-employment are the amount on line 1 of either schedule.

clude the allowance of rental value of the parsonage as nontaxable

earned income on line 4 of the worksheet above if it is required to be

Other earnings. Your earnings from self-employment in a business

included on federal Schedule SE, line 2. Then, determine how much

you own, or from your services as a minister or member of a religious

of the income reported on federal Form 1040, line 7, was also re-

order, are earned income for the credit.

ported on federal Schedule SE, line 2. Next, subtract that income

from the amount on federal Form 1040, line 7. Then, enter only the

Federal Schedule SE. If you filed federal Schedule SE, your earn-

result on line 1 of the worksheet above.

ings from self-employment are the amount you get after you subtract

one-half of your self-employment tax (federal Form 1040, line 27)

Form It-40 - Indiana Full-Year Resident Individual Income Tax Return - 1999 Page 5

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