Schedule 7 (IT-40), titled “Additional Required Information,” is a mandatory information sheet that accompanies your 2026 Indiana Individual Income Tax Return (Form IT-40). While other schedules focus on calculating taxes, credits, or deductions, this form acts as a verification and communication tool for the Indiana Department of Revenue. It collects critical details about your federal filing status, income earned from neighboring reciprocal states (like Kentucky or Michigan), and administrative details such as whether you filed an extension or are authorizing a representative to speak on your behalf. Additionally, it handles sensitive situations like reporting the death of a taxpayer or claiming innocent spouse relief. Failing to complete this schedule accurately can delay the processing of your return or cause issues with verifying your identity and tax history. It is the final “housekeeping” step that ensures your return is complete and legally compliant before you sign off on your taxes.
How To File Schedule 7 (IT-40)
Schedule 7 is filed as an attachment to your main Form IT-40. It is “Sequence No. 06,” meaning it typically goes after your other schedules (like Schedule 5 or 6) but before your federal return copies in your stack of paperwork. You must fill out every section that applies to you. Once completed, keep it attached to your IT-40 when you mail your return or ensure it is included in your electronic submission. Crucially, this form also contains the section where you authorize a paid preparer or personal representative, so it serves as the legal permission slip for someone else to discuss your taxes with the state.
How To Complete Schedule 7 (IT-40)
Line 1: Federal Filing Information
Simply mark “Yes” or “No” to indicate if you are also filing a federal income tax return (Form 1040) for the 2026 tax year.
Line 2: Out-Of-State Income
Complete this only if you or your spouse received wages, tips, or commissions from a reciprocal state (Illinois, Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin). Enter the 2-digit state code (found in Schedule CT-40 instructions) for the state where you worked, and report the specific amount of Your Income earned there. Do the same for your Spouse’s Income if applicable.
Line 3: Extension Of Time To File
Mark box 3a with an “X” if you filed a federal extension (Form 4868). Mark box 3b with an “X” if you filed an Indiana state extension (Form IT-9) or made an online extension payment. This tells the state why your return might be filed after the April deadline.
Line 4: Farm / Fishing Income
Place an “X” in this box if at least two-thirds (66%) of your gross income came from farming or fishing. Important: If you check this box, you are required to attach Schedule IT-2210 to your return.
Line 5: Schedule IN-40PA Filers
If you are filing for Innocent Spouse Relief (similar to federal Form 8857), check this box. You must enclose Schedule IN-40PA with your return to verify this claim.
Line 6: Date Of Death
If the taxpayer or spouse listed on the return passed away during 2026, enter the specific Date of Death (MM/DD) in the appropriate space. This is critical for processing final returns.
Line 7: Contact Information
Enter your email address and daytime telephone number. This allows the Department of Revenue to contact you quickly if they have questions about your return, potentially speeding up your refund.
Authorization Section (Bottom of Page)
- Personal Representative: If you want to allow someone (like a family member or attorney) to discuss your return with the state, check “Yes” and fill in their name, phone number, and address.
- Paid Preparer: If you paid a professional to prepare your taxes, they must complete the “Paid Preparer” section with their firm’s info, PTIN, and signature.
- Sign Your Return: Finally, this is where you legally sign your tax return. By signing, you declare under penalty of perjury that the information is correct and authorize the state to verify your Social Security number and deposit your refund.