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February 7, 2025
Question

Why does it says that I qualify for the Indiana Renters Deduction tax credit ($3000), but when I finished my form, it says that I’m only getting $180 back?

  • February 7, 2025
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    February 7, 2025

    The Indiana Renter's Deduction is a subtraction (deduction) from your taxable income, not a reduction (credit) from your tax. So, it reduces your income before the tax is applied to it. It does not result in a direct reduction of your income tax, so the tax benefit will be far less that the maximum $3,000 deduction. You can learn more here.

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