Schedule CC-40

This article provides a complete, line-by-line guide to completing Schedule CC-40, ensuring you understand each section and can accurately claim your credit. Contributions such as tuition payments, fees, or room and board are not eligible for this credit as they are not considered charitable donations.

Schedule CC-40 is used to calculate the Indiana College Credit, a tax credit for contributions made to qualifying Indiana colleges, universities, or related organizations. This form must be completed and submitted with your Indiana state income tax return, allowing individuals, fiduciaries, and corporations to claim a credit against their Indiana adjusted gross income tax liability. The credit is designed to encourage charitable contributions to eligible educational institutions in Indiana.

What Is Schedule CC-40?

Schedule CC-40 is a supplemental form filed with your Indiana state income tax return to compute and claim a tax credit for donations to Indiana colleges or universities. The credit is calculated as 50% of your total contribution, up to a maximum of $100 for single filers or fiduciaries, and $200 for joint filers. For corporations, the maximum credit is the lesser of 50% of the contribution amount, $1,000, or 10% of the corporation’s adjusted gross income tax liability.

Eligible contributions must be made to colleges, universities, or organizations exclusively benefiting these institutions. A full list of eligible colleges and their associated 4-digit codes is provided on the form.

How to File Schedule CC-40

Follow these steps to file Schedule CC-40:

  1. Obtain the Form: Download Schedule CC-40 from the Indiana Department of Revenue website or obtain a printed copy.
  2. Collect Documentation: Ensure you have records of your eligible contributions, including receipts and proof of payment.
  3. Complete the Form: Use the line-by-line instructions below to accurately fill out each section.
  4. Attach to Tax Return: Include Schedule CC-40 with your state income tax return (Form IT-40, IT-40PNR, or IT-41).
  5. Submit Your Return: File your return and Schedule CC-40 by the due date to claim your credit.
How to Complete Schedule CC-40

How to Complete Schedule CC-40

Below is a comprehensive, line-by-line guide to completing Schedule CC-40:

Part 1 – Itemized Contributions to Eligible Institutions

  1. Name of Eligible Indiana College or University:
    Enter the name of the college or university to which you donated. You can find the list of eligible institutions and their 4-digit codes on the back of the form.
  2. 4-Digit Code Number:
    Write the 4-digit code corresponding to the institution you contributed to. Use the list provided on the form.
  3. Date of Contribution (MM/DD/YYYY):
    Enter the date of your contribution in the format MM/DD/YYYY.
  4. Amount of Contribution:
    Write the dollar amount you contributed to the institution. Only charitable donations (not tuition or fees) qualify.
  5. Type of Return Filed by the Contributor:
    Check the appropriate box to indicate the type of return being filed:
    • Individual: For personal income tax returns (IT-40 or IT-40PNR).
    • Corporate: For corporate income tax returns (IT-20).
    • Fiduciary: For fiduciary income tax returns (IT-41).

Repeat these five steps for each institution you contributed to. Use additional sheets if necessary.

Part 2 – Individual and Fiduciary Computation of Credit

  1. Line 1 – Enter the Total Contributions:
    Add up all the amounts from the “Amount of Contribution” column in Part 1. Enter the total here.
  2. Line 2 – Enter 50% of Line 1:
    Multiply the total contributions from Line 1 by 50% (0.50).
  3. Line 3 – Limitation:
    • Single filers or fiduciaries: The limit is $100.
    • Joint filers: The limit is $200.
      Enter the appropriate limit for your filing status.
  4. Line 4 – Allowable Credit:
    Enter the lesser of Line 2 or Line 3. This is your allowable credit amount.
  5. Line 5 – Indiana Adjusted Gross Income Tax:
    Enter your Indiana adjusted gross income tax from:
    • Line 8 of Form IT-40
    • Line 8 of Form IT-40PNR
    • Line 10 of Form IT-41
  6. Line 6 – Allowable College Credit:
    Enter the lesser of Line 4 or Line 5. This is your final allowable credit. Additionally, enter this amount on:
    • IT-40 Schedule 6, Line 4
    • IT-40PNR Schedule G, Line 4
    • IT-41, Line 14

Part 3 – Corporation’s Computation of Credit

  1. Line 1 – Total Contributions:
    Add up all contributions from Part 1 and enter the total amount.
  2. Line 2 – 50% of Line 1 or $1,000:
    Calculate 50% of the amount on Line 1. If this amount exceeds $1,000, enter $1,000 instead.
  3. Line 3 – Adjusted Gross Income Tax:
    Enter the adjusted gross income tax from the appropriate line of the corporate return (e.g., IT-20, IT-20S, or IT-20NP).
  4. Line 4 – Multiply Line 3 by 10% (0.10):
    Calculate 10% of the adjusted gross income tax reported on Line 3.
  5. Line 5 – Final Credit:
    Enter the lesser of Line 2 or Line 4. Report this amount on the appropriate line of the corporate or nonprofit tax return.

Additional Information

  • Eligible Institutions: The back of the form provides a comprehensive list of eligible Indiana colleges and universities, along with their 4-digit codes. Be sure to use these codes when completing Part 1.
  • Documentation: Retain proof of your contributions, as the Indiana Department of Revenue may request verification.
  • Limitations: Contributions for tuition, fees, or room and board are not eligible for this credit.
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