Why is the state portion of my taxes only allowing me to claim 2 of my 3 dependents in Indiana?

[DanielV01 · Accepted solution]

This is in regards to Indiana's calculation of Earned Income Credit  Indiana does allow you to claim Earned Income Credit on your Indiana return, 9% of what you receive on the Federal Return.  However, Indiana only will calculate the credit on 2 qualified children, whereas the Federal Return will calculate on up to 3 children.

For more information, please see this website:  DOR: Earned Income Tax Credit...Do You Qualify? - IN.gov.  Also, please note that while you only receive Earned Income Credit calculated on 2 children, you will receive the applicable exemptions for all of your dependent children.  (More than one benefit is applied).