Indiana IT-20NP

This article serves as a comprehensive guide for Indiana nonprofit organizations to correctly fill out and file their Unrelated Business Income Tax Return for the tax year.

Form IT-20NP is the official tax return document used by the Indiana Department of Revenue for nonprofit organizations that generate Unrelated Business Income (UBI). Even though an organization may hold tax-exempt status, it is still required to file this form if it earns income from trade or business activities that are not substantially related to its exempt purpose, mirroring the requirements for the federal Form 990-T. This document allows the organization to calculate its Adjusted Gross Income Tax on those specific non-exempt earnings, apply for specific state deductions and credits, and report any Sales or Use Tax due to the state. Effectively, it reconciles the federal taxable unrelated business income with Indiana’s specific tax laws to determine if the nonprofit owes the state money or is entitled to a refund.

How To File Form IT-20NP?

Once you have completed the calculations and secured the necessary signatures from a corporate officer, the return must be submitted via mail. You should send the completed Form IT-20NP, along with any required schedules and payment, to the Indiana Department of Revenue, PO Box 7228, Indianapolis, IN 46207-7228.

How To Complete Form IT 20NP

How To Complete Form IT-20NP

Entity Information and Filing Period At the top of the form, enter the name of the organization, complete address, and the Federal Employer Identification Number (FEIN). You must also provide the 2-digit County Code, the Principal Business Activity Code, and the telephone number. Specify the tax year by entering the dates for the fiscal year beginning and ending in 2024; if this is a calendar year return, use the default December 31, 2024 end date. If this is an amended return or if the organization’s name has changed, check the appropriate boxes in the header.

Status and Federal Information (Sections A, B, and C)

  • Section A: Check the applicable boxes if this is an Initial Return, a Final Return, or if the organization is in Bankruptcy.
  • Section B: Indicate “Yes” or “No” regarding whether you have a valid federal extension of time to file (Federal Form 7004) on file.
  • Section C: Check this box if the entity operates multiple unrelated trades or businesses.

Adjusted Gross Income Tax Calculation (Lines 1–4)

  • Line 1: Enter the Unrelated Business Taxable Income exactly as it appears on your federal Form 990-T before the Net Operating Loss (NOL) deduction. You must attach Form 990-T to this return.
  • Line 2: Deduct any non-unitary partnership income included in Line 1.
  • Line 3: Enter the specific deduction amount allowed. The instructions generally list this as $1,000.
  • Line 4: Subtract the amounts on Line 2 and Line 3 from Line 1 to determine your initial adjusted income.

Modifications (Lines 5–8)

  • Lines 5–8: Use these lines to report any specific Indiana add-backs or deductions. For each entry, list the name of the modification, the corresponding Code Number, and the amount. Use a minus sign for negative amounts.

Apportionment and Indiana Income (Lines 9–16)

  • Line 9: Calculate your total Unrelated Business Income by adding or subtracting Lines 5 through 8 from Line 4. If you are not apportioning income, enter this same result.
  • Line 10: If applicable, enter the Indiana apportionment percentage from Line 9 of IT-20 Schedule E and enclose the schedule.
  • Line 11: Multiply Line 9 by the percentage on Line 10 to determine the Unrelated Business Income apportioned to Indiana. If not apportioning, carry the amount from Line 9.
  • Line 12: Enter any non-unitary partnership income that is derived specifically from Indiana sources .
  • Line 13: Enter the Indiana Net Operating Loss deduction and enclose Schedule IT-20NOL.
  • Line 14: Calculate Taxable Indiana Unrelated Business Income by adding Lines 11 and 12, then subtracting Line 13.
  • Line 15: Enter any taxable income reported from other forms, such as Form 1120-POL.
  • Line 16: Add Line 14 and Line 15 to arrive at your Subtotal..

Tax Computation (Lines 17–19)

  • Line 17: Calculate the Indiana tax on unrelated business income by multiplying Line 16 by the applicable tax rate (refer to the official instructions for the current rate).
  • Line 18: Enter any Sales or Use Tax currently due.
  • Line 19: Add Line 17 and Line 18 to determine the Total Tax Due.

Credits and Payments (Lines 20–32)

  • Line 20: Enter the total of quarterly estimated tax payments made for Qtr 1 through Qtr 4.
  • Line 21: Enter any amount paid specifically with a filing extension.
  • Line 22: Enter the amount of overpayment credit carried forward from the previous tax year.
  • Line 23: Enter pass-through withholding and other payments, and include Schedule IN K-1.
  • Line 24: Enter the total EDGE credit amount claimed from Line 19 of Schedule IN-EDGE.
  • Line 25: Enter the total EDGE-R credit amount claimed from Line 19 of Schedule IN-EDGE-R.
  • Lines 26–30: Use these lines to list specific offset credits. Enter the name of the credit, the Code Number, and the amount for each.
  • Line 31: Enter the total certified credits claimed from Schedule IN-OCC and enclose the schedule.
  • Line 32: Add Lines 20 through 31 to calculate your Total Credits.

Balance Due or Refund (Lines 33–40)

  • Line 33: Subtract Line 32 from Line 19. If the result is positive, this is your initial Balance of Tax Due.
  • Line 34: Enter any penalty for the underpayment of income tax and attach Schedule IT-2220. Check the box if you are using the annualization method.
  • Line 35: If the payment is made after the original due date, calculate and enter the interest due.
  • Line 36: Enter the penalty amount if paid late (10% of Line 33). Note that if Line 19 is zero but the return is late, you must enter $10 per day for every day filed past the due date.
  • Line 37: Add Lines 33 through 36 to determine the Total Payment Due. This is the amount you must pay in U.S. funds.
  • Line 38: If Line 32 is greater than the sum of Lines 19 and 34-36, calculate your Total Overpayment.
  • Line 39: Enter the portion of the overpayment from Line 38 that you want to be refunded.
  • Line 40: Enter the portion of the overpayment from Line 38 that you want applied to the following year’s estimated tax account.

Signatures The return must be signed and dated by a corporate officer. You must also print the officer’s name, title, and email address. If a paid preparer completed the form, they must sign and provide their PTIN, firm name, address, and telephone number.

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