Are dependent children claimed last year eligible, just so long as they haven't received this extra exemption in the past? I'm confused as to if my existing children are eligible, so long as I've only claimed them under the standard exemption in previous years.
The Indiana Additional Exemption is allowed for certain dependent children who are claiming a child as a dependent for the first taxable year in which the additional dependent exemption is allowable for that child.
The 2023 Indiana Individual Income Tax Booklet, page 26, states:
An additional $1,500 exemption is allowed for certain dependent children. Carefully read the following Dependent child definition below to see if you are eligible for this additional exemption(s).
If a taxpayer is claiming a child as a dependent for the first taxable year in which the additional dependent exemption is allowable for that child, the taxpayer is permitted to claim an amount of $3,000 instead of $1,500 for one tax year. This exemption is not permitted if the child could have been claimed for the $1,500 exemption in any previous year, regardless of whether the child had been claimed.
Dependent child definition
According to state statute, to be eligible for this exemption a dependent child must be a son, stepson, daughter, stepdaughter, foster child, child for whom you are a legal guardian, and/or your spouse’s child, if filing a joint return. He/she must be either under the age of 19 by the end of the tax year, or be a full-time student who is under the age of 24 by the end of the tax year.
See IT-40 Booklet here.