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Screen INPYNR - Indiana Part-Year and Nonresident Information (1040)

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Overview

This screen appears only if Indiana is selected as Part-Year resident or Nonresident via
File
,
Client Properties
, then
Indiana
 tab.

General Information

Use this section to enter taxpayer and spouse residency information to report on Schedule H. If at any time during the year one spouse was a resident of Indiana while the other spouse wasn't a resident of Indiana, select
File
,
Client Properties
, then
Indiana
 tab, and select the option for Part-year resident.
State of residency
Enter the state if the taxpayer or spouse was a resident in only one state for the entire year. If either lived in a foreign country, select the period (
.
) or
OC
. Additional 2-letter codes for foreign provinces may appear in other fields, but aren’t acceptable for Schedule H. This field determines if the taxpayer is eligible to file Form IT-40RNR.
Return filed in state of residency
If
State of residency
 has data, use these fields to indicate whether a tax return is being filed for the current year in the resident state of residency.
States of residency
Enter the states and dates of residency if the taxpayer or spouse was a resident in more than one state during the year. You'll need to enter residency information for the entire year. You can enter
IN
 for the residency period attributable to Indiana. If either lived in a foreign country, select the period (
.
) or
OC
 in
State
.
Instate taxable wages (Force)
Indiana Schedule A, Column B excludes wages for nonresident returns when the resident state is part of the reciprocal agreement (KY, MI, OH, PA, or WI). Part-year residents that have wages (including military) with code
IN
 on the federal
W2
 screen also displays in Column B. You can force a different amount here.
Nonresident Employee Wage Deduction
Indiana nonresident taxpayers, who aren't residents of a reciprocal state and are not professional athletes, entertainers, or public figures, can claim a deduction for Indiana source wages if they work in Indiana for 30 days or less, provided certain conditions are met.
  • The Nonresident Wage Deduction is reported on Schedule C, line 11 as a code
    644
     deduction to income computed for state tax purposes.
  • The deduction is also applied to principal employment income on Schedule CT-40PNR, Section 2, lines 1A & B and to gross income from Indiana employment on Form IT-40RNR, lines 1A & 1B as a reduction to income computed for county tax purposes.
When Client Properties reflects Indiana Nonresident and taxpayer meets the qualifying conditions, an amount equal to Indiana Schedule A, lines 1B and 2B is reported as the Code 644 deduction on Schedule C, line 11.  Likewise, when applicable, such amount is applied against Principal Employment Income for County Tax purposes on Schedule CT-40PNR or Form IT40RNR.
Use the force fields to change the qualifying deduction amount to report on Schedule C or to apply to Principal Employment Income or Gross Income from Indiana Employment for County Tax purposes.
note
Per the Indiana Department of Revenue, if the taxpayer lived in Indiana for any part of the year and worked in Indiana during the non-residency period, the taxpayer isn't entitled to the deduction, even if the Indiana nonresident employment period was 30 days or less.

AGI Worksheet Amounts

Use this section to enter part-year or nonresident information that differs from the calculated amount in the State amounts column of the AGI Worksheet. Calculated amounts are based on the postal code you enter in the federal screens. Review returns with PAL, basis and at-risk adjustments.
Net Indiana rent and royalties reported on federal Schedule E (Force)
Use this field to enter an amount different than the amount calculated for the Rent / Royalty income amount for Column B of Form IT-PNR, IN Schedule A.
Federal net operating loss carryover
The amount of NOL carryover in the federal
Amounts
 column defaults to the taxpayer when the federal filing status is MFJ. Enter the portion of the federal NOL carryover to this state as a positive amount in the
Net operating loss carryover
 taxpayer and spouse fields. These amounts only affect the Indiana AGI Worksheet.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1040 Individual
  • State: Indiana

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