Business & farm
Thank you for providing your token. I see the amount of out of state tax exempt interest being added back to your Indiana return correctly.
The $2,058 in out of state tax exempt interest, which you classified on the federal screens as Multiple States, is being added on Schedule 1, Line 3. This flows to Line 2 of your IT-40 form. As I stated in a previous post, the following amounts would not be an add-back due to the guidelines specified by the state of Indiana:
- Indiana
- Guam
- Puerto Rico
- Virgin Islands
Therefore, do not deduct $107 on Schedule 2 because it is not being included as taxable to the state. Line 1 of your IT-40 represents the amount of federal AGI, which does not include any of the $2,165. From there, only $2,065 is being added back. There is no reason to deduct an amount that is not part of your taxable income.
I have added screenshots below for further clarification. If you have any other questions, please reply in the thread and tag me so I am notified promptly.
Schedule 1:
IT-40:
