The following is the description and function of some of the federal worksheets and sections applicable to Indiana. For help with all other worksheets and sections not specifically mentioned in this help screen, review the help available on the other worksheets and sections.
Use this field to enter the resident state return to be processed. Any information in the return which does not have an entry in the "State Code" field is used in the resident state return only.
See the "FS" and "State Code" help screens for further information on the use of state codes.
Information entered on this section is used to answer the appropriate questions on the Indiana return. For additional information required on the Indiana return, refer to the "Information and Questions" portion on the "Basic Data" section of the "Indiana Information" worksheet.
"Type of Entity" is a required entry in this section. The return is processed according to federal and Indiana tax law.
If the "Type of Entity" is a "Charitable remainder annuity trust" or "Charitable remainder unitrust", the Indiana return will be processed as a complex trust and a message reading "Exempt from income taxation pursuant to I.R.C. section 664" will print on a statement behind form IT-41.
When filing an estate income tax return, enter the decedent's social security number in the "Decedent's Social Security Number" field. This information prints on page 1 of Form IT-41.
On the Federal/Basic Data worksheet in the Basic Data section, if the "Electing small business trust" box is selected, the Indiana ESBT Worksheet is produced. This worksheet details the income and deductions from S Corporation sources. These entries are made on the Passthrough worksheets. Indiana has no specific ESBT tax rates.
Single or multiple grantor trusts can be processed by entering "Grantor type trust" in the "Type of Entity" field in this section. Enter the grantor information on the "General Section" of the federal "Beneficiary Information" worksheet.
See the "General" section of the "Grantor and Custodial Information" worksheet in this help screen for more information.
To process the Custodial/Agency Account, Tax Information Letter, enter a "Custodial/agency account" in the "Type of Entity" field. Enter the recipient information on the "General Section" of the "Beneficiary Information" worksheet.
When this option is selected, the Indiana Form IT-41 is suppressed and the recipient's tax information is printed on a customized "Tax Information Letter".
See the "General" section of the "Grantor and Custodial Information" worksheet in this help screen for more information.
If an initial return is indicated in this section, the "First Return" check box on Indiana Form IT-41, Page 2 will be checked. If a federal return has been filed in prior years but this is an initial Indiana return, enter a "Y" in the "Initial Return..." field on the "General" section of the federal "State General Information" worksheet.
Indiana Form IT-41 and Schedule K-1 report the same final and amended status as the federal return. To prevent the Indiana return from defaulting to the same final and/or amended status as the federal return, enter "N" in the corresponding field(s) on the "General" section of the federal "State General Information" worksheet. Enter "Y" in the appropriate field to identify the Indiana return as final and/or amended when the federal return is not.
The federal and Indiana Schedules K-1 can be indicated as final for specific beneficiaries with entries on the "General Section" of the federal "Beneficiary Information" worksheet.
Three copies of the Indiana return are provided. Additional copies can be ordered in sets of one federal and one Indiana, including all K-1's.
The option to produce a copy of Form 1041 for each beneficiary or grantor applies only to the federal return.
For additional copies of the Schedule K-1's only, enter the number (up to a maximum of 99) in the "Number of copies Schedule K-1" field.
The option to annualize tax is not available for Indiana fiduciary short-year returns.
Entries made in this section will override the preparer information entered in
This information prints in the signature block area at the bottom of Indiana Form IT-41.
Unless otherwise noted, all federal options and features related to the grantor and custodial/agency letters produce similar results for Indiana.
See the federal help for detail concerning this worksheet.
Tax information required to file an Indiana individual return is printed on a Grantor Letter.
When this option is selected, the Tax Information Letter is printed in place of Form IT-41.
All Indiana adjustments are distributed equally if there are NO decimal entries in the "Required distribution" or "Discretionary distribution" fields of the "General" section of the federal "Beneficiary Information worksheet. If decimal entries are used in these fields, then the distributed adjustments are based on the percentage entered for each owner.
If an entry is made in the "Print sections 671-678 IRC text on return" box, the following message prints on a statement behind the Indiana fiduciary return: "Under the terms of the trust instrument, this is a grantor trust. All income is taxable to the grantor as set forth under sections 671-678, IRC, 1986. A statement of income and deductions is attached."
Use the federal "General Letter Information", ""Filing Instructions and Cover Letter", "Transmittal Letter" and "Special Paragraphs" sections of the federal "Letters and Filing Instructions" worksheet to produce filing instructions, cover letters, transmittal letters and special paragraphs.
See the federal instruction help available for additional information on producing and customizing these letters.
Use the federal "K-1 Transmittal" worksheet to produce a Schedule K-1 Transmittal Letter
See the federal instruction help available for additional information on producing and customizing this letter.
To create a footnote for the Indiana return only, enter "S" in the "FS" field in this section. If the footnote is to print with both the federal and Indiana returns, leave the "FS" box blank.
The footnote prints as a statement after the Indiana forms, in all copies of the return.
To create Schedule K-1 footnotes for the Indiana return only, enter "S" in the "FS" field on this section. If the Schedule K-1 footnote is to print with both the federal and Indiana returns, leave the "FS" field blank. If the footnote is for a specific beneficiary, enter the beneficiary number so that it matches the beneficiary number in the "General Section" of the federal "Beneficiary Information" worksheet.
To allocate an amount between beneficiaries, enter a distribution code indicating which distribution percentage should be used. If no overriding percentages are entered, the ordinary income percentage will be used. If no beneficiary number or distribution code is entered, the amounts entered with this footnote will print in total for all beneficiaries.
Each Schedule K-1 footnote prints as a statement after the applicable Schedule K-1, in all copies of the return.
Select the "State" column of the "Produce initial extension" field to produce Indiana Form IT-41ES, Estimated Tax and Extension Payment Voucher.
Entries on the federal and Indiana worksheets and sections are used to complete Indiana Form IT-41ES. Use the applicable fields in the "State" column to override the computed amounts.
Form IT-41ES can also be produced by using government view to key in data directly on Form IT-41ES.
The entries in the "Federal" column apply only to the federal return; the entries in the "State" column apply only to the Indiana return.
The "State Use Code" and "State Use" boxes do not apply to Indiana.
This worksheet and related sections are used to completely fill out all information for the Indiana Power of Attorney Form POA-1. Input information for representative name(s) and addresses, tax type information, and the year(s) or period(s).
This federal worksheet and related sections are used to provide general information common to various states. The "State code" field will determine to which state the entries on the section apply. If the state code is left blank, the entries will only be used for the home state indicated on the "General" section of the federal "Basic Data" worksheet
Enter a "Yes" in this field to indicate an initial state return when a federal return has been filed in prior years. This entry will check the appropriate field on Form IT-41. If no entry is present in this field, Indiana will use the same initial return status as the federal return.
The Indiana fiduciary return and Schedule K-1 report the same final status as the federal return. The federal return is indicated as being final by selecting this field on the "General" section of the federal "Basic Data" worksheet. Make a "Yes" entry in this field to indicate a final state return when the federal return is not final. This entry will check the appropriate field on Form IT-41 and Schedule K-1. Beneficiary allocation input will not be recomputed to arrive at a full final year distribution when this field is used. A final return must be indicated on the "General" section of the federal "Basic Data" worksheet, to accommodate full final year distributions.
The Indiana fiduciary return and Schedule K-1 report the same amended status as the federal return. The federal return is indicated as being amended by selecting this field on the "General" section of the federal "Basic Data" worksheet. If the federal return is amended, select "N" in this field to prevent Indiana from defaulting to the federal amended status. Select "Yes" in this field to indicate an amended Indiana return when the federal return is not. This entry will check the appropriate field on Form IT-41 and Schedule K-1.
Select "IN" in the "State Code" field and the applicable interest rate (as a decimal) in the "First Quarter" fields for current and/or next year.
These interest rate overrides work in conjunction with the interest and penalty options on the "State penalties and Interest" section of the "Penalties and Late Interest" worksheet.
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