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RoverC
Level 1

Indiana Elderly Tax credit generates refund

I have a weird tax situation/result that does not feel right.  Using Turbo Tax Deluxe to file for my mother.  She is over 65 and needs to file because of some stock sales and home sale this year.  Federal AGI ended up negative because of stock sale losses.  Only other income is SocSec.  Fed return is fine and she owes zero.  Move to State returns and Indiana has an elderly tax credit ($100) that she qualifies for.  I added her property taxes paid just because I have them, but everything else on state form is zero.  State AGI is actually negative.  So I was expecting a zero due state, BUT because of the elderly tax credit Turbo Tax say she is due a refund of $100.  IT-40 form has $100 Indiana credit line 14 and Taxes paid line 15 is 0.  So 100 refund.  That is the part that does not feel right.  No income, paid no state taxes, but yet gets a refund?

 

Am I looking at this wrong? Passed all Turbo Tax checks.  I tried to edit the credit to remove it but Turbo Tax wont let me edit that part of the form.  Am I just to trust the software and proceed with filing?

6 Replies
LenaH
Employee Tax Expert

Indiana Elderly Tax credit generates refund

Yes. The Indiana Elderly Credit is a refundable credit and therefore, your mother is entitled to the $100 refund. A refundable tax credit means you get a refund, even if it's more than what you owe.

RoverC
Level 1

Indiana Elderly Tax credit generates refund

Thanks for the quick reply Lena.  Much appreciated.

Mlc46234
New Member

Indiana Elderly Tax credit generates refund

Turbo Tax does not check to see if you are qualified.  There is an Income requirement.  Mine exceeded it and Turbo Tax did not catch it.  I incurred a penalty.  This tax credit requires a SC-40 form. 

MaryM428
Level 10

Indiana Elderly Tax credit generates refund

Your mother qualifies for the credit and you can file her return and claim the $100.

 

Here are the Indiana Rules for the Unified Tax Credit for the Elderly.

scipris
Level 1

Indiana Elderly Tax credit generates refund

Why did I not get the Indiana Elderly Tax credit for 2020 tax year? I got it for 2019 tax year.

BillM223
Employee Tax Expert

Indiana Elderly Tax credit generates refund

Indiana says...

 

You may be able to claim the unified tax credit for the elderly if you or your spouse meet all the following requirements:

  • You and/or your spouse are age 65 or older by the end of the tax year;
  • You must file a joint return if you were married and living together at any time during the year;
  • Your federal adjusted gross income must be less than $10,000;
  • You must claim the credit by June 30 of the tax year;
  • You must have been a resident of Indiana for six months or more during the tax year; and
  • You must not have been in prison for 180 days or more during the tax year.

Do you meet all of those criteria?

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