INDIANA 2025 IT-40 Full-Year Resident - Individual Income Tax Booklet - FREE online tax filing and form guidance

Sep 19, 2026

INDIANA 2025 IT-40 Full-Year Resident provides guidance for filing Indiana individual income tax returns for full-year residents. It encourages free online tax filing, highlighting faster refunds, fewer errors, and easier completion. The booklet explains which of the three return forms fits a taxpayer’s residency and income situation (IT-40, IT-40PNR, IT-40RNR), including reciprocal-state rules and military considerations. It also summarizes 2025 changes, including new credits, deductions, schedule updates, and effects related to recent federal conformity rules.

LanguageEnglish

CategoryForms

FormatPDF

Pages56

Reading Time20 min

AccessFree to download

Which Indiana Tax Form Should You File?

Form IT-40 for Full-Year Residents

Form IT-40PNR for Part-Year and Full-Year Nonresidents

Form IT-40RNR for Full-Year Residents of Reciprocal States

2025 Changes

Credits

Deductions

Other Changes

General Information

Annual Public Hearing

INDIANA 2 0 2 5 IT-40 Full-Year Resident Individual Income Tax Booklet [freefile.dor.in.gov FAST](freefile.dor.in.gov FAST) • FRIENDLY • FREE WAIT! YOU MAY QUALIFY FOR FREE ONLINE TAX FILING! The majority of Indiana taxpayers file electronically every year. Consider the benefits of filing electronically: • Faster Refund. Electronic filing reduces errors and expedites refund time – within 10 to 14 days (compared with 10 to 12 weeks for a paper return) . • Fewer Errors. Up to 20 percent of paper-filed returns have errors, which can result in delays and possible penalty and/or interest for the taxpayer. Returns filed electronically, however, are 98 percent accurate. • Easier Filing. You won’t have to complete the many complicated forms in this booklet. Instead, you go online, answer some easy questions, and before you know it your taxes are complete. [You may be eligible to file your taxes online for FREE with INfreefile. Go to](You may be eligible to file your taxes online for FREE with INfreefile. Go to www.in.gov/dor/i-am-a/individual/infreefile)[ www.in.gov/dor/i-am-a/individual/infreefile](You may be eligible to file your taxes online for FREE with INfreefile. Go to www.in.gov/dor/i-am-a/individual/infreefile)[ ](You may be eligible to file your taxes online for FREE with INfreefile. Go to www.in.gov/dor/i-am-a/individual/infreefile)[to see if you qualify or learn more about INfreefile on page 4.](to see if you qualify or learn more about INfreefile on page 4.) SP 265 (R26 / 9-25) Which Indiana Tax Form Should You File? Indiana has three different individual income tax returns. Read the following to find the right one for you to file. Form IT-40 for Full-Year Residents Use Form IT-40 if you (and your spouse, if married filing jointly) were full-year Indiana residents. Form IT-40PNR for Part-Year and Full-Year Nonresidents Use Form IT-40PNR if you (and your spouse, if married filing jointly): • Were Indiana residents for less than a full-year or not at all, or • Are filing jointly and one was a full-year Indiana resident and the other was not a full-year Indiana resident, and • Do not qualify to file Form IT-40RNR. Form IT-40RNR for Full-Year Residents of Reciprocal States Use Form IT-40RNR if you (and your spouse, if married filing jointly) were: • Full-year residents of Kentucky, Michigan, Ohio, Pennsylvania or Wisconsin, and • The only type of income from Indiana was from wage, tip, salary or other compensation.* *You are required to file Form IT-40PNR if you have any other kind of Indiana-source income. Note. If you have income that is being taxed by both Indiana and another state, you may have to file a tax return with the other state. Military Personnel See the instructions on page 7 to determine which form to file. Military personnel stationed in a combat zone should see the instructions on page 7 for extension of time to file procedures. 2025 Changes Conformity Updates. Line 1 of Form IT-40 assumes conformity with the Internal Revenue Code of 1986, as amended and in effect on Jan. 1, 2023. If the 2026 Indiana General Assembly does not conform to the most current changes to the Internal Revenue Code, you may have to amend your tax return at a later date to reflect any differences between Indiana and federal law. You may wish to periodically check DOR’[s homepage at](s homepage at www.in.gov/dor)[ www.in.gov/dor](s homepage at www.in.gov/dor) for updates. Credits • A new credit, Affordable and Workforce Housing Credit (871), is available for developers of affordable rental housing in the state of Indiana. See page 39 for additional information. • A new credit, New Rail Infrastructure Expenditures Tax Credit (883), is available for qualified new rail infrastructure expenditures. See page 45 for additional information. • A new credit, Railroad Expenditures Tax Credit (882), is available for qualified railroad expenditures. See page 46 for additional i

FAQs

Who should file Form IT-40 in the 2025 Indiana booklet?

File Form IT-40 if you (and your spouse, if married filing jointly) were full-year Indiana residents.

When do you need Form IT-40PNR instead of IT-40?

Use Form IT-40PNR if you were an Indiana resident for less than a full year (or not at all), or if filing jointly where one spouse was not a full-year Indiana resident, and you do not qualify to file IT-40RNR.

Which taxpayers qualify for Form IT-40RNR?

Use IT-40RNR if you (and your spouse, if married filing jointly) were full-year residents of Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin and the only Indiana-source income is wage, tip, salary, or other compensation.

Sep 19, 2026

Upload by Emma Mercer