Ind. Code § 6-3-2-10
Unemployment compensation; deduction
Redline — January 1, 2018 → current.View current text →
Current — January 1, 2023
As of January 1, 2018
Sec. 10. (a) An individual who received unemployment compensation, as defined in subsection (c), during the taxable year is entitled to a deduction from the individual's adjusted gross income for that taxable year in the amount determined using the following formula:
STEP ONE: Determine the greater of zero (0) or the difference between:
Sec. 10. (a) For purposes of this section, "excess adjusted gross income" means the greater of zero (0) or one-half (1/2) of:
(1) the individual's adjusted gross income or the combined adjusted gross income of the individual and the individual's spouse, if the individual files a joint return with the individual's spouse, as determined under Section 62 of the Internal Revenue Code; plus
(B) the base amount as defined in subsection (b).
STEP TWO: Determine the greater of zero (0) or the difference between:
(A) the individual's unemployment compensation for the taxable year; minus
(B) one-half (1/2) of the amount determined under STEP ONE.
(b) As used in this section, "base amount" means:
(1) twelve thousand dollars ($12,000) in all cases not covered by subdivision (2) or (3);
(2) eighteen thousand dollars ($18,000) in the case of an individual who files a joint return for the taxable year; or
(3) zero (0), in the case of an individual who:
(A) is married at the close of the taxable year, as determined under Section 143 of the Internal Revenue Code;
(B) does not file a joint return for the taxable year; and
(C) does not live apart from the individual's spouse at all times during the taxable year.
(2) any unemployment compensation excluded from federal gross income under Section 85(c) of the Internal Revenue Code; minus
(3) the following amount:
(A) Eighteen thousand dollars ($18,000) for an individual who files a joint tax return with the individual's spouse.
(B) Zero dollars ($0) if the individual:
(i) is married at the close of the taxable year, as determined under Section 7703 of the Internal Revenue Code;
(ii) does not file a joint return for the taxable year; and
(iii) does not live apart from the individual's spouse at all times during the taxable year.
(C) Twelve thousand dollars ($12,000) for an individual not described in clause (A) or (B).
(b) "Eligible unemployment compensation" means unemployment compensation received by an individual and included in the individual's federal gross income under Section 85 of the Internal Revenue Code plus any unemployment compensation received by the individual excluded from federal gross income under Section 85(c) of the Internal Revenue Code. The term does not include amounts not taxable under this article as a result of 45 U.S.C. 352.
(c) An individual is entitled to a deduction against the individual's adjusted gross income in an amount equal to the greater of zero (0) or the remainder of:
(1) eligible unemployment compensation; minus
(2) excess adjusted gross income.
(d) For an individual and an individual's spouse described in subsection (a)(3)(A):
(1) the deduction under subsection (c) shall be computed based on the combined eligible unemployment compensation of the individual and the individual's spouse; and
(2) this subsection and subsection (c) shall not be construed to permit more than one (1) deduction under this section.
Official source: Indiana General Assembly. Reproduced from public-domain Indiana statutes; confirm against the official source for the current text. Not legal advice.