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Deductions work by reducing the amount of assessed value a taxpayer pays on a given parcel of property. Application for deductions must be completed and dated not later than December 31 annually. Taxpayers do not need to reapply for deductions annually.
Seniors do not need to file an Indiana Income tax return if they are an Indiana resident (maintained legal residence in Indiana for the entire year) and the total value of their personal, elderly, and blind exemptions exceeds their federal gross income before deductions.
Senior citizens, as well as all homeowners in Indiana, can claim a tax deduction if their home serves as their primary residence. The home and up to one acre of land can qualify for the homestead exemption. This exemption provides a deduction in assessed property value.
If you and/or your spouse are 65 or older by the end of the tax year, you may be able to claim the unified tax credit for the elderly ($200 in 2022). Taxpayers who are filing for this credit must meet all of the requirements, which include:
Over 65 Deduction (IC 6 -1.1-12-9) • 65 years of age or older. • Income threshold is $30,000 if single; $40,000 if married. • Social Security COLA will now be included each year so that eligible individuals are not excluded based on increasing income. • Assessed value of $240,000 or less (Savings Clause for trending)
Property Tax Benefit. Over 65 Deduction. May not exceed $240,000 on property. For 23 pay 24, AGI cannot exceed $32,610 for an individual or $43,480 for a married couple filing jointly or individuals and other individuals who share ownership. For 24 pay 25, AGI limits are $33,654 and $44,872.
Over 65 Deduction from Assessed Valuation. If you receive the over 65 or surviving spouse deduction, you will receive a reduction in your home’s assessed value of $14,000 or half the assessed value, whichever is less. The lower the assessed value of your home, the smaller your property tax bill.
