Indiana Renter's Deduction
You may be able to take the Indiana renter's deduction if:
- You paid rent on your principal place of residence, and
- The place you rented was subject to Indiana property tax.
Your "principal place of residence" is the place where you have your true, fixed, permanent, home and where you intend to return after being absent. If you rented a manufactured home or paid rent for your manufactured home, you may claim the renter's deduction if the above requirements are met. Rent paid for summer homes or vacation homes is not deductible.
You cannot claim the renter's deduction if the rental property was not subject to Indiana property tax.
Examples of this type of property are:
- Government owned housing,
- Property owned by a nonprofit organization,
- Student housing,
- Property owned by a cooperative association, and
- Property located outside of Indiana.
To report your renter's deduction, you will be required to provide the following information:
- The address where rented if it's different from the address on the front of the return (leave blank if it is not different),
- The landlord's name and address,
- The total amount of rent paid, and
- The number of months you lived there.
If you moved during the year or had more than one landlord, you must list the same information for each place that you rented.
How Much Rent Can I Deduct?
You can deduct up to $3,000 or the amount of rent paid, whichever is less. Example: Emily paid $4,800 in rent on her principal place of residence. She will claim a $3,000 renter's deduction.
Note: Keep copies of your rental receipts, landlord identifying information and lease agreements as the Department can require you to provide this information. For more information about this deduction, see the instructions or Income Tax Information Bulletin #38.
Once you have created your state return, you can enter your Renter's Deduction information under Subtractions from Income>>Renters Deduction.