The document you have received actually contains two distinct schedules on a single page: Schedule 5 and Schedule IN-DONATE. Together, these forms handle the “money back” and “giving back” portions of your 2026 Indiana Individual Income Tax Return (Form IT-40). Schedule 5 is used to claim various refundable credits and payments you have already made, such as state withholding from your paycheck, estimated tax payments, or specific economic credits like the Earned Income Credit. These directly lower the amount of tax you owe or increase your refund. Schedule IN-DONATE allows you to voluntarily contribute a portion of your refund to specific charitable funds approved by the state. Instead of receiving that money, you direct it to causes like wildlife preservation or military family relief. You must file this form if you have withholdings to report, credits to claim, or if you wish to donate part of your refund.
How To File It?
This form serves as an attachment to your main tax return. You cannot file it alone. After you calculate your totals on this page, you must transfer the specific figures to the corresponding lines on your Form IT-40. Specifically, the total from Schedule 5 goes to Line 12 of your IT-40, and the total from Schedule IN-DONATE goes to Line 17 of your IT-40. Once completed, enclose this entire sheet with your main return when you submit it to the Indiana Department of Revenue.
How To Complete Schedule 5 (IT-40)?
This form is divided into two sections. Follow the instructions below for each part.
Schedule IN-DONATE (Top Section)
Line 1 (a, b, c): Choose up to three specific funds you wish to donate to. For each donation, write the Fund Name, the 3-digit Code Number (found in the official instructions), and the Amount you want to donate.
Line 2: Add the amounts from Lines 1a through 1c and enter the total here. Transfer this number to Form IT-40, Line 17. Note: This amount cannot be higher than the refund amount available on your main return (Line 16 of Form IT-40).
Schedule 5: Credits (Bottom Section)
Line 1: Enter the total Indiana state income tax withheld from your W-2s or 1099s.
Line 2: Enter the total Indiana county income tax withheld from your W-2s or 1099s.
Line 3: Enter any credit claimed for Pass Through Entity Tax paid on your behalf.
Line 4: Enter the total of any estimated tax payments you made for the tax year 2026, including any payment made with an extension request (Form IT-9).
Line 5: Enter the Unified Tax Credit for the Elderly if you meet the age and income requirements.
Line 6: Enter your Indiana Earned Income Credit. You must complete and enclose Schedule IN-EIC to claim this.
Line 7: Enter the Lake County residential income tax credit if you qualify based on your location and income.
Line 8: Enter the Economic Development for a Growing Economy (EDGE) credit amount from Line 19 of your Schedule IN-EDGE (must be enclosed).
Line 9: Enter the EDGE Retention credit amount from Line 19 of your Schedule IN-EDGE-R (must be enclosed).
Line 10: Enter the refundable portion of the Headquarters Relocation Credit.
Line 11: Enter the Adoption Credit if you have qualifying adoption expenses.
Line 12: Leave this blank (Reserved for future use).
Line 13: Add Lines 1 through 12 to get your Total Credits. Enter this figure here and transfer it to Form IT-40, Line 12.