45 IAC 3.1-1-77 Nonresident reverse credit reciprocity

Authority: IC 6-8.1-3-3

Affected: IC 6-3-3-3; IC 6-3-5-1

Sec. 77. Reverse Credit for Nonresidents. A credit is allowed against adjusted gross income tax imposed upon nonresidents who reside in states which grant similar credits to Indiana residents who become subject to tax under the laws of those states.

The Indiana credit (reverse credit) is the amount of income tax actually paid to the taxpayer's resident state but only on income derived from Indiana sources, or two percent (2%) of such income, whichever is less. The list of those states which grant a similar credit and the method for computing the allowable amount of credit are outlined under Regulation 6-3-3-3(a)(020) $45 IAC 3.1-1-75$.

In order to claim this credit, the taxpayer must file an Indiana Part-Year or Nonresident Tax Return along with a certified copy of the return filed with his resident state, reporting income which is subject to tax under this Act and under the laws of taxation of the other state.

(Department of State Revenue; Reg 6-3-3-3(b)(010); filed Oct 15, 1979, 11:15 am: 2 IR 1536; errata, 2 IR 1743)