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Category: Indiana

Lake County Credit

Lake County (Indiana) Residential Income Tax Credit

You may be eligible to claim a Lake County (Indiana) residential income tax credit if you meet all three of the following requirements.

  1. You paid property tax to Lake County (Indiana) during 2014 on your residence. Your “residence” is your principal dwelling. You must either own or be buying the residence under contract, and must pay property tax to Lake County (Indiana) on that residence.
  2. Your earned income must be less than $18,600. Earned income is the combination of your (and your spouse’s, if filing a joint return) wages, salaries, tips and other compensation, plus net earnings from self-employment (income on which you are required to pay self-employment tax on federal Schedule SE). Note: Income from pensions, interest, dividends, Social Security, etc., is not classified as earned income.

    Example. Sue has $17,000 wage income, $300 interest income and $7,000 pension income. Even though her total income is 24,300,Sue will qualify for the credit because her earned income is less than $18,600 (it is $17,000). IMPORTANT: You are not required to have earned income to be eligible for this credit.
  3. You are not claiming the homeowner’s residential property tax deduction on Indiana Schedule 2, line 2.

IMPORTANT: Remember, you can claim either this credit OR the homeowner's residential property tax deduction but not both.

For instructions on how to calculate your credit, please refer to Page 38 on Indiana IT-40 Booklet.