Schedule IN-EIC

Schedule IN-EIC allows eligible taxpayers to claim the Indiana Earned Income Credit based on their federal EIC and qualifying children.

Indiana Schedule IN-EIC is used to claim the Indiana Earned Income Credit (EIC), which is available to eligible individuals who have claimed the federal Earned Income Credit (EIC) on their federal income tax return. This credit is designed to provide financial relief to lower-income working individuals and families, particularly those with children. To qualify for the Indiana EIC, you must have earned income below a specific threshold, and the credit is calculated based on the federal earned income credit amount. This schedule also requires information about any qualifying children you have claimed on your federal tax return, as the number of children impacts the amount of the credit. Schedule IN-EIC must be filed along with your Indiana tax return (Form IT-40 or IT-40PNR) for you to be eligible for this credit.

How to File Indiana Schedule IN-EIC

To file Indiana Schedule IN-EIC, follow these steps:

  1. Complete Your Federal Income Tax Return: Before you can claim the Indiana EIC, ensure you have already claimed the federal EIC on your federal tax return (Form 1040).
  2. Fill Out Schedule IN-EIC: Complete the sections of the schedule, including the earned income credit from your federal return and the necessary details about your children.
  3. Attach the Schedule to Your State Tax Return: After completing Schedule IN-EIC, attach it to your Form IT-40 or IT-40PNR and submit it to the Indiana Department of Revenue.
  4. Ensure All Eligibility Requirements Are Met: Make sure your income is under the threshold set by Indiana (less than $68,675), and you have valid information about your qualifying children.
How to Complete Indiana Schedule IN-EIC Line-by-Line Instructions

How to Complete Indiana Schedule IN-EIC: Line-by-Line Instructions

Section A – Figure Your Indiana Earned Income Credit

Line A-1: Federal Earned Income Credit

  • Enter the amount of the earned income credit (EIC) you claimed on your federal income tax return (Form 1040). This amount is the starting point for calculating your Indiana EIC.

Line A-2: Enter Your Earned Income

  • Enter the earned income amount you used to determine your federal earned income tax credit. This is typically the total income from employment or self-employment that qualifies for the credit.

Line A-3: Calculate Your Indiana Earned Income Credit

  • Multiply the amount from Line A-1 by 10% (0.10). This figure represents the Indiana Earned Income Credit. Carry this total to Form IT-40, Schedule 5, line 6 or Form IT-40PNR, Schedule F, line 6, Box A.

Section B – Qualifying Child (Children)

Important: You must complete this section if you are claiming one or more children on your federal Schedule EIC.

Line B-1: Relationship of the Child to You

  • Enter the relationship of each child to you. The options are:
    • A: Your child
    • B: Grandchild
    • C: Stepchild
    • D: Foster child (not related)
    • E: Other (related foster child, or other related child like a niece or nephew).

Line B-2: Age of the Child

  • Enter the age of each child. The options are:
    • A: Under age 18
    • B: Age 18
    • C: Age 19 – 24 and a full-time student
    • D: Age 19 or older and totally disabled

Line B-3: Location of the Child

  • Indicate where the child lived for the majority of the year by selecting one of the following options:
    • A: The child lived with you for at least half of the year.
    • B: The child was born or died in 2025, and lived with you while alive.

Child 1, Child 2, and Child 3 Sections:

  • First Name: Enter the first name of each child.
  • Last Name: Enter the last name of each child.
  • Social Security Number (SSN): Enter the SSN of each child. If a child was born and died in 2025 and does not have an SSN, enter the word “Died” in the SSN box and keep a copy of the child’s birth certificate and/or death certificate for your records.

Key Notes:

  • Eligibility for Credit: To qualify for Indiana’s EIC, you must be eligible for the federal EIC. If you haven’t claimed the federal EIC, you cannot claim the Indiana EIC.
  • Income Limitation: Your earned income must be less than $68,675 to claim the Indiana EIC.
  • Claiming Children: The number of children you can claim impacts the amount of the credit. You must complete Section B with accurate information about each child you are claiming.
  • Filing: Schedule IN-EIC must be submitted along with your state tax return (Form IT-40 or IT-40PNR). If you do not know your federal EIC by the filing deadline, you can file your Indiana return without it and later amend your return once you have the information.

Additional Tips

  • Required Documentation: Ensure you have your federal tax return and any necessary documents regarding your children’s eligibility (such as birth certificates or other supporting documents) ready for submission.
  • Amending Your Return: If you miss claiming the Indiana EIC, you can amend your tax return once you know your federal EIC by filing a corrected Indiana return.
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