Schedule IN-W is a centralized worksheet used to report all Indiana state and county income tax withheld from your earnings. Instead of attaching loose W-2s or 1099s directly to your tax return, you transcribe the withholding information from those forms onto this single schedule. It acts as a summary document that proves to the Department of Revenue that you have already paid a portion of your taxes through your employer or other payers during the year. This schedule is compatible with multiple tax forms, including the IT-40, IT-40PNR (for part-year residents), and IT-40RNR (for reciprocal nonresidents). Essentially, it serves as the “proof of payment” sheet, ensuring you get credit for every dollar of tax that was taken out of your paycheck or gambling winnings before you even filed.
How To File Schedule IN-W?
Schedule IN-W is filed as an attachment (Sequence No. 26) to your main tax return. You must fill out a row for every single W-2, 1099-R, W-2G, or other withholding statement you received. Once you have listed all your forms, you calculate the totals at the bottom and transfer these numbers to the “Credits” section of your main tax return (specifically Schedule 5 for IT-40 filers). When you submit your taxes, this completed schedule must be included to validate your withholding claims.
How To Complete Schedule IN-W?
Columns A – H: Entering Your Withholding Info
For every W-2 or 1099 form you have, fill out one row on this schedule using the information below:
- Column A (Social Security Number): Enter the SSN of the person listed on the withholding form (yours or your spouse’s)
- Column B (Form Code): Enter the 1-letter code that corresponds to the type of form you are holding. Use the chart at the bottom of the page (e.g., use “W” for a W-2, “R” for a 1099-R, “U” for a 1099-G).
- Column C (Employer/Payer ID): Enter the Federal Employer Identification Number (FEIN) from the form.
- Column D (State Income): Enter the amount of income subject to Indiana state tax.
- Column E (State Tax Withheld): Enter the amount of Indiana state tax that was actually withheld.
- Column F (Local Income): Enter the amount of income subject to county/local tax.
- Column G (Local Tax Withheld): Enter the amount of county/local tax that was withheld.
- Column H (Locality Code): Enter the 2-digit code for the county where the local tax was withheld (usually found in Box 20 of a W-2).
Line 26: Total State Tax Withheld
Add up all the amounts in Column E (Lines 1 through 25). Enter the total here.
- Transfer this number to Schedule 5, Line 1 (if filing IT-40).
Line 27: Total Local Tax Withheld
Add up all the amounts in Column G (Lines 1 through 25). Enter the total here.
- Transfer this number to Schedule 5, Line 2 (if filing IT-40).