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INDIANA 2 0 23 FIT-20 Financial Institution Tax Booklet This booklet contains instructions for preparing Indiana financial institution returns for tax year 2023 and for fiscal years beginning in 2023 and ending in 2024.
Enlarge image | INDIANA 2 0 23 FIT-20 Financial Institution Tax Booklet This booklet contains instructions for preparing Indiana financial institution returns for tax year 2023 and for fiscal years beginning in 2023 and ending in 2024. |
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SP 244
(R22 / 12-23)
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INDIANA FIT-20
Financial Institution Tax Booklet Year 2023
Contents
What’s New for 2023 ..............................................................................................................................................................4
General Information ..............................................................................................................................................................4
General Filing Requirements for FIT-20 Forms and Schedules .......................................................................................4
Instructions for Completing Form FIT-20 ..........................................................................................................................7
Certification of Signatures and Authorization Section ..................................................................................................15
Mailing Options ....................................................................................................................................................................16
Other Tax Liability Credits Available to Financial Institutions ......................................................................................16
Instructions for FIT-20 Schedule E-U Apportionment of Receipts to Indiana ...........................................................19
Instructions for Filing a Combined Return: Attributing Receipts of a Taxpayer Filing a Combined Return .........20
Instructions for Schedule FIT-NRTC – Nonresident Tax Credit ...................................................................................20
Instructions for Form FT-ES ..............................................................................................................................................21
Instructions for Schedule FIT-20NOL – Computation of Indiana Member’s Net Operating Loss Deduction ............. 21
Additional Information .......................................................................................................................................................23
FIT-20 Financial Institution Booklet 2023 Page 3
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INTIME e-Services Portal Available
INTIME, DOR’s e-services portal, available at intime.dor.in.gov,
General Information
provides the following functionalities for FIT-20 customers:
• Make payments using a bank account or credit card Annual Public Hearing
• View and respond to correspondence from DOR In accordance with the Indiana Taxpayer Bill of Rights, the
• Request and print return transcripts on-demand Indiana Department of Revenue will conduct an annual public
• Electronic delivery of correspondence hearing in Indianapolis in June of 2024. Event details will be listed
• Online customer service support through secure messaging at www.in.gov/dor/news-media-and-publications/dor-public-
events/annual-public-hearings. Please come and share feedback
Increased Online Support for Tax Preparers or comments about how DOR can better administer Indiana tax
In addition to the functionality listed above, INTIME provides laws. If you cannot attend, please submit feedback or comments
increased access and functionality for tax preparers. INTIME in writing to Indiana Department of Revenue, Commissioner’s
provides the following functionality for tax preparers: Office MS# 101, 100 N. Senate Ave., Indianapolis, IN 46204.
• Gain access to view and manage multiple customers under
one login Our homepage provides access to forms, information bulletins
• Ability to file returns, make payments, and view file and pay and directives, tax publications, email, and various filing options.
history for clients Visit www.in.gov/dor.
• Request electronic power of attorney (ePOA) authorization to
view customer accounts
• View and respond to correspondence for clients
General Filing Requirements for FIT-20
We strongly encourage all taxpayers to make payments and file Forms and Schedules
returns electronically whenever possible. INTIME also allows Copies of pages 1 through 5 of the corporation’s federal income tax
customers to make estimated payments electronically with just a return must be enclosed with Form FIT-20 along with Schedule M-3
few clicks. as well as any extension of time to file form(s). This requirement is
made under the authority of Indiana Code (IC) 6-5.5-6-5.
Extension of Time to File
What’s New for 2023
All Indiana financial institutions tax return due dates are treated
References to the Internal Revenue Code the same as extensions granted because of a federal income tax
The definition of adjusted gross income (AGI) is updated to due date extension.
correspond to the federal definition of adjusted gross income
contained in the Internal Revenue Code (IRC). Any reference to Who Must File Form FIT-20
the IRC and subsequent regulations means the Internal Revenue IC 6-5.5-2-1 imposes a financial institution tax on the adjusted
Code of 1986, as amended and in effect on January 1, 2023. For a gross income of any corporation transacting the business of a
complete summary of new legislation regarding taxation, please see financial institution, including a holding company, a regulated
the Synopsis of 2023 Legislation Affecting the Indiana Department of financial corporation, a subsidiary of a holding company or
Revenue at www.in.gov/dor/files/2023-legislative-synopsis.pdf. regulated financial corporation, or any other corporation carrying
on the business of a financial institution. Any taxpayer who is
Add-Backs subject to tax under IC 6-5.5 is exempt from Indiana’s adjusted
• A new add-back (154) is available for specified research and gross income tax.
experimental expenses required to be amortized for federal
income tax purposes. See page 9 for more information. The financial institution tax extends to financial institutions and
to all other corporate entities when 80% or more of its gross
Credits income is derived from activities that constitute the business
• A new credit (874) is available for qualified investments at a of a financial institution. The business of a financial institution
mine reclamation site. See page 18 for more information. is defined as activities authorized by the federal reserve board; the
making, acquiring, selling, or servicing of loans or extensions of
Deductions credit; acting as an agent, a broker, or an advisor in connection
• A new deduction (639) is available to allow the deduction with leasing real and personal property that is the economic
for the portion of small employer health insurance premiums equivalent of an extension of credit; or operating a credit card,
that is disallowed for federal purposes as a result of claiming debit card, or charge card business.
the credit under IRC section 45R. See page 10 for more
information. File the general Indiana corporate adjusted gross income
• A new deduction (641) is available to permit a current-year tax return, Form IT-20, if for the taxable year the 80%
deduction for specified research and experimental expenses threshold of gross income derived from activities that
otherwise required to be amortized for federal tax purposes. constitute the business of a financial institution is not met.
See page 10 for more information. This form is available online at www.in.gov/dor/tax-forms/2023-
corporatepartnership-income-tax-forms.
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Due Date • Maintaining or defending an action or a suit;
The return due date is the 15th day of the 5th month after the end • Filing, modifying, renewing, extending, or transferring a
of the tax year. mortgage, deed of trust, or security interest;
• Acquiring, foreclosing, or otherwise conveying property in
Apportionment of Adjusted Gross Income Indiana as a result of a default under the terms of a mortgage,
The financial institution tax is imposed on the apportioned deed of trust, or security interest relating to the property;
Indiana income of financial institutions. The law employs a • Selling tangible personal property, if taxation under this law
single-factor receipts formula to determine the percentage of the is precluded because of P.L. 86-272;
taxpayer’s income subject to the tax. The single-factor formula is • Owning an interest in the following types of property
derived by dividing the gross receipts attributable to transacting even though activities are conducted in Indiana that are
business in Indiana by the total receipts from transacting business reasonably required to evaluate and complete the acquisition
in all taxing jurisdictions. or disposition of the property, the servicing of the property,
or the income from the property, or the acquisition or
Nexus Rules liquidation of collateral relating to the property;
The law is based on the ability of a corporation under modern • An interest in a real estate mortgage investment conduit, a
technology to transact the business of a financial institution in real estate investment trust, or a regulated investment
Indiana, regardless of the principal location of its offices and company;
employees. • An interest in a loan-backed security representing ownership
or participation in a pool of promissory notes or certificates
A taxpayer is transacting business in Indiana for purposes of the of interest providing for payments in relation to payments
FIT when it satisfies any of the following eight tests: or reasonable projections of payments on the notes or
• Maintains an office in Indiana; certificates;
• Has an employee, a representative, or an independent • An interest in a loan or other asset where the interest is
contractor conducting business in Indiana; attributed to a consumer loan, commercial loan, or secured
• Regularly sells products or services of any kind or nature to commercial loan and where the payment obligations were
customers in Indiana who receive the product or service in solicited and entered into by a person who is independent
Indiana; and not acting on behalf of the owner;
• Regularly solicits business from potential customers in • An interest in the right to service or collect income from a
Indiana; loan or other asset where interest on the loan is attributed
• Regularly performs services outside Indiana that are as a loan described above and the payment obligations were
consumed within Indiana; solicited and entered into by a person who is independent
• Regularly engages in transactions with customers in Indiana and not acting on behalf of the owner; or
involving intangible property, including loans, but not • An amount held in an escrow or trust account with respect to
property described in IC 6-5.5-3-8(5), and resulting in the property described previously.
receipts flowing to the taxpayer from within Indiana; Acting:
• Owns or leases tangible personal or real property located in • As an executor of an estate;
Indiana; or • As a trustee of a benefit plan;
• Regularly solicits and receives deposits from customers in • As a trustee of an employee’s pension, profit sharing, or other
Indiana. retirement plan;
• As a trustee of a testamentary or inter vivos trust or corporate
A taxpayer is presumed to “regularly” engage in the above indenture; or
activities when its assets attributable to Indiana are equal to at • In any other fiduciary capacity, including holding title to real
least $5 million or it has 20 or more Indiana customers. property in Indiana.
Exempt Entities Method of Reporting
Four specific types of organizations are exempted from the FIT: A taxpayer is allowed to file a separate return only in those
• Insurance companies otherwise subject to tax under instances where the taxpayer is not a member of a unitary group.
IC 6-3, IC 27-1-2-2.3, or IC 27-1-18-2; Members of a unitary group must file collectively on one combined
• International banking facilities; return. No provision is made for filing consolidated returns.
• S corporations exempt from income tax under IRC Section
1363; and If the taxpayer is a member of a unitary group, combined
• Nonprofit corporations unless the nonprofit corporation reporting is mandatory. However, if the taxpayer determines that
has unrelated business income (with the exception of state its Indiana income is not accurately reflected by the filing of a
chartered credit unions). Federal law prohibits state taxation combined return, the taxpayer can petition DOR. Such petition is
of federally chartered credit unions. subject to approval by DOR. The petition must include the name
and federal employer identification number of each member of
Exempt Transactions the group petitioning for an alternative method. Each member
A taxpayer is not considered to be transacting business in Indiana must include its justification for the alternative method.
if the ONLY activities of the taxpayer in Indiana are in connection
with any of the following:
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Petitions may be sent to: A partnership is not required to withhold FIT on behalf of its
Indiana Department of Revenue resident corporate taxpayers as defined by IC 6-5.5-1-13. The resident
Tax Policy Division corporate partners are responsible for paying the relevant FIT or
100 N Senate Ave, N248, MS 102 adjusted gross income tax themselves. See the Instructions for Form
Indianapolis, IN 46204-2253 IT-65 for further information regarding withholding requirements.
Once the petition is approved, the taxpayer will indicate on the Example. A bank in Maine and a bank in Indiana form a
annual return that the return is a separate return made by a partnership to make loans to Indiana borrowers. The only Indiana
member of a unitary group. Attach DOR’s letter granting petition activity of the Maine bank is its involvement in the partnership.
to the annual return filing. The partnership is required to withhold FIT on the Maine bank’s
share of the partnership income.
Members of a Unitary Group
The combined return shall include the adjusted gross income of United States Government Obligations
all members of the unitary group that are transacting business Although interest earned on U.S. obligations is not subject to
wholly or partially within Indiana. The statute provides exclusion income taxation, it is not preempted by federal law from being
for the income of corporations or other entities organized in included in the tax base of a franchise tax. Therefore, interest
foreign countries, except a federal or state branch of a foreign from U.S. obligations is not to be subtracted from federal taxable
bank or its subsidiary that transacts business in Indiana. income in determining the adjusted gross income for the FIT.
“Unitary business” means business activities or operations that Extensions for Filing
are of mutual benefit, dependent upon or contributory to one DOR accepts the federal extension of time application (Form
another, individually or as a group, in transacting the business 7004) or the federal electronic extension. If the taxpayer has
of a financial institution. The term can be applied within a one, there is no need to contact DOR prior to filing the annual
single entity or between multiple entities and without regard to return. Returns postmarked within one month after the last date
whether each entity is a corporation, partnership, or trust. Unity indicated on the federal extension will be considered timely filed.
is presumed if there is unity of ownership, operation, or use as If the taxpayer does not need a federal extension of time but needs
evidenced by centralized purchasing, advertising, accounting, or one for filing a state return, an extension request and prepayment
other controlled interaction among entities that are members of of 90% can be submitted via INTIME, DOR’s e-services portal
the unitary group as defined in IC 6-5.5-1-18(a). at intime.dor.in.gov, or by submitting a letter requesting an
extension prior to the annual return’s due date.
Unity of ownership exists for a corporation if it is a member of a
group of two or more business entities, 50% of whose voting stock To request an Indiana extension of time to file by letter, contact:
is owned by a common owner or owners or by one or more of the Indiana Department of Revenue
member corporations of the group. Corporate Income Tax
Tax Administration
The taxpayer designated as the reporting member of a unitary P.O. Box 7206
group shall file a combined return that includes all operations Indianapolis, IN 46207-7206
of the unitary business. List members included in the combined
return by completing FIT-20 Schedule H. See Instructions for If there is a valid extension of time or a federal electronic extension to
Filing a Combined Return beginning on page 19. file, check Yes on line V on the front of the return. If applicable, enclose
a copy of the federal extension of time when filing the state return.
Partnerships
Partnerships and trusts as entities are not subject to FIT. An extension of time granted under IC 6-8.1-6-1 waives the late
Partnerships conducting the business of a financial institution are payment penalty for the extension period on the balance of tax
required to file the appropriate informational return, Form IT-65. due provided at least 90% of the tax due is paid by the original due
Trusts conducting the business of a financial institution in Indiana date and the remaining balance, plus interest, is paid in full by the
are required to file the appropriate tax returns. extended due date. Use DOR’s e-services portal, INTIME, at intime.
dor.in.gov to make an extension payment for the taxable year.
If the entity is a partnership and has nonresident corporate
partners that are themselves conducting the business of a If a payment is not submitted electronically, it must be made with
financial institution, the partnership is required to withhold FIT the financial institution preprinted extension form included with
on behalf of the non-resident corporate partner on the non- the estimated coupon packet Form FT-ES. This payment will be
resident partner’s share of the partnership income. If the non- processed as a fifth estimated payment.
resident corporate partner is not otherwise itself conducting the
business of a financial institution, the partnership is required to Note. Any tax paid after the original due date must include interest.
withhold Indiana adjusted gross income tax on the non-resident Interest on the balance of tax due must be included with the return
partner’s share of the partnership income. The apportionable when it is filed. Interest is computed from the original due date
income attributable to the partner is the same percentage as its until the date of payment. In October of each year, DOR establishes
distributive share of the partnership’s income. the interest rate for the next calendar year. See Departmental Notice
#3 at www.in.gov/dor/files/reference/dn03.pdf for interest rates.
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Amended Returns Failure to submit a required quarterly payment electronically will
A taxpayer must notify DOR within 180 days of final alterations result in a penalty of 10% being assessed at the time the annual
or modifications to its federal income tax return (federal income tax return is filed. The penalty is computed on each payment
adjustment, RAR, etc.) by filing an amended Form FIT-20. required to be made electronically that is instead submitted by
another means. Indiana Code does not require the extension of time
To amend a previously filed Form FIT-20, file a corrected copy of to file payment or final payment due with the annual tax return to be
the original form. Check the box at the top of the form for filing made by EFT. Be sure to claim any EFT payment as an extension or
an amended return. estimated payment credit. Do not file a return indicating an amount
due for an amount that has been paid by EFT.
To claim a refund of an overpayment, file the return within three
years from the latter of the date of the overpayment or the due date Penalty for Underpayment of Estimated Taxes
of the return. IC 6-8.1-9-1 entitles a taxpayer to claim a refund (IC 6-5.5-7-1)
because of a reduction in tax liability resulting from a final federal Corporations estimating financial institution tax liability are subject to
modification. The claim for refund must be filed within 180 days a 10% underpayment penalty if the corporation fails to file estimated
from the date of notice of the final modification by the Internal tax payments or fails to remit the sufficient amount of estimated
Revenue Service unless the normal three year statute of limitations payments. To avoid the penalty, the required quarterly estimated
has yet to expire. If an agreement to extend the statute of limitations payment(s) should include at least 20% of the final financial institution
for an assessment is entered into between the taxpayer and DOR, tax liability for the current taxable year or 25% of the corporation’s
the period for filing a claim for refund is likewise extended. final financial institution tax liability for the previous tax year.
Estimated Quarterly Payments The penalty for the underpayment of estimated tax is assessed
Quarterly payments of estimated financial institution tax are on the difference between the actual amount paid by the
required under IC 6-5.5-6-3 if the annual tax liability is $2,500 or corporation for each quarter and 20% of the final liability for the
more. The quarterly due dates for estimated quarterly payments current year or 25% of the corporation’s final tax liability for the
of a calendar year filer are April 20, June 20, September 20, and previous tax year, whichever is less. Refer to Schedule FIT-2220,
December 20 of the taxable year. Underpayment of Estimated Tax by Financial Institutions, on
return page 4 of Form FIT-20.
If a taxpayer uses a taxable year that does not end on December 31, the
due dates for the estimated quarterly financial institution tax payments
are on or before the 20th day of the 4th, 6th, 9th, and 12th months of Instructions for Completing Form FIT-20
the taxpayer’s taxable year. Estimated quarterly payments can be made
via INTIME, DOR’s e-services portal at intime.dor.in.gov. Filing Period and Identification
File a 2023 Form FIT-20 return for a taxable year ending Dec.
If a payment is not submitted electronically via INTIME, it 31, 2023; a short tax year beginning in 2023; or a fiscal tax year
must be made with the financial institution estimated quarterly beginning in 2023 and ending in 2024. For a short or fiscal tax
vouchers, Form FT-QP. DOR mails preprinted FT-QP vouchers to year, fill in the beginning month and day and the ending date of
current FIT estimated account holders. the taxable year at the top of the form.
Important. Estimated payments of $5,000 or more are required Please use the correct legal name of the corporation and its
to be made electronically, with a penalty assessed for failure to present mailing address.
comply. See page 4 for information about using INTIME,
DOR’s e-services portal. For foreign addresses, please note the following:
• Be sure to enter the name of the city, town, or village in the
Electronic Payment Requirements box labeled City;
If the amount of financial institution tax exceeds an average liability • Be sure to enter the name of the state or province in the box
of $5,000 per quarter (or $20,000 annually), a customer’s quarterly labeled State; and
estimated tax payments must be remitted electronically via INTIME, • Enter the postal code in the box labeled ZIP Code; and
DOR’s e-services portal at intime.dor.in.gov, or with an electronic • Enter the 2-digit country code.
funds transfer (EFT). If DOR is unable to obtain payment by the
EFT, a penalty of $35 will be assessed. Because there is no minimum For a name change, check the box at the top of the return. Enclose
amount of payment, DOR encourages all taxpayers not required to with the return copies of the amended Articles of Incorporation
remit by EFT to participate voluntarily in our EFT program. or an Amended Certificate of Authority filed with the Indiana
Secretary of State.
Note. Taxpayers remitting by EFT should not file quarterly FT-QP
coupons. The amounts paid by EFT are reconciled when filing the Note. Corporate addresses, contact names, and other account
annual income tax return. information may be updated using our self-service portal, INTIME.
If DOR notifies a corporation of the requirements to remit by The federal employer identification number (FEIN) shown in the
EFT, the corporation must remit via EFT by the date/tax period box must be correct.
specified by DOR.
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List the two-digit county code if filing a return for a corporate Line 6. Enter the amount deducted for bad debt reserves (IRC
address in Indiana. See Departmental Notice #1 located at www. Sec. 593).
in.gov/dor/files/reference/dn01.pdf for a list of county codes.
Enter “00” (two zeroes) in the county box D if corporate address Line 7. Enter the amount deducted for charitable contributions
lies outside of Indiana. (IRC Sec. 170).
Enter the principal business activity code, derived from the Line 8. Enter the amount deducted on the federal return for all state
North American Industry Classification System (NAICS), in the and local taxes based on or measured by income (IRC Sec. 63).
designated block of the return. Use the six-digit activity code as
reported on the federal corporation return. Line 9. Enter an amount equal to the capital loss carryover (from
federal Schedule D: line 6, minus line 18 loss amount) to the
Lines L through W of the FIT-20 must be completed for the extent used in offsetting capital gains allowed under IRC Section
return to be accepted by DOR. Check or complete all boxes that 1212. See the instructions to line 23 for subtracting the amount
apply to the return. deductible for Indiana net capital losses.
Check the “final return” box only if the corporation is dissolved, Line 10. Enter the amount of interest on state and local obligations
liquidated, or has withdrawn from the state. Timely file Form BC- excluded under IRC Section 103, or under any other federal law,
100 to close out any sales and withholding accounts. Complete these minus the associated expenses disallowed in the computation of
online at www.in.gov/dor/business-tax/closing-a-business-account. taxable income under IRC Section 265.
Check the appropriate box if filing as a real estate mortgage Lines 11 A, B, C, and D. Other Income Modifications
investment conduit (REMIC). Enclose a complete explanation for adjustments.
Note. The return for a REMIC is due on the 15th day of the 4th Line 11A. Add or subtract an amount equal to the amount
month following the close of the taxpayer’s tax year. claimed as a deduction for excess business interest. If a deduction
for interest paid or incurred in the current year has been
Indicate on line V if an extension of time to file is in effect. If disallowed under IRC Section 163(j), subtract the amount of
applicable, enclose a copy of federal Form 7004 when filing the interest disallowed in the current year. If you have interest that
state return. was actually paid or incurred in a previous taxable year but
disallowed for federal purposes due to the limitations under IRC
Schedule A – Line Instructions Section 163(j) AND deducted for federal purposes in the current
Per IC 6-8.1-6-4.5, round amounts to the nearest whole dollar. taxable year, add back the amount of interest so deducted for
Each line on which an amount can be entered has a “.00” already federal purposes.
filled in. This is a reminder that rounding is now required when
completing the tax return. Line 11B. Add or subtract an amount attributable to bonus
depreciation in excess of any regular depreciation that would be
Also, do not use a comma in dollar amounts of four digits or allowed had not an election under IRC Section 168(k) been made
more. For example, instead of entering “3,455” enter “3455.” as applied to property in the year that it was placed into service.
Taxpayers who own property for which additional first-year
Line 1. Enter federal taxable income from Federal Form 1120 before special depreciation for qualified property, including 100% bonus
the net operating loss deduction or the special federal deduction. depreciation, was allowed in the current taxable year or in an
earlier taxable year, must add or subtract an amount necessary
Note. If filing as a state-chartered credit union or an investment to make adjusted gross income equal to the amount computed
company registered under the Investment Company Act of 1940, without applying any bonus depreciation. The subsequent
proceed to line 19 to enter adjusted gross income as defined under depreciation allowance is to be calculated as if no bonus
IC 6-5.5-1-2(b) and(c). depreciation had been claimed until the property is disposed or
the property is fully depreciated for Indiana purposes. If line 11B’s
Line 2. Enter the qualifying dividend deduction and any other amount is negative, use a minus sign to denote that.
amounts reported on Federal Form 1120, Line 29b.
Special rules may apply if the bonus depreciation is taken against
Line 3. Subtract line 2 from line 1. property acquired in a like-kind exchange. See Income Tax
Information Bulletin #118 at www.in.gov/dor/files/reference/
Add backs: Lines 4 through 10. ib118.pdf for additional information.
Line 4. Enter the amount deducted for bad debt (IRC Sec. 166).
See line 16 to report recovery of a previously reported worthless The additional regular depreciation may be excluded in
debt to the extent a deduction was allowed from gross income in a subsequent years from the amounts to be added back on line
prior tax year under IRC Sec. 166(a). 11B, or 11C when excess IRC Section 179 deduction or bonus
depreciation was elected for assets placed in service in those
Line 5. Enter the amount deducted for bad debt reserves of banks subsequent years.
(IRC Sec. 585).
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See Income Tax Information Bulletin #118 available at www. been adding back the depreciation expense taken for federal purposes
in.gov/dor/files/reference/ib118.pdf for information on the that exceeded the amount allowable for Indiana purposes. The
allowance of depreciation for state tax purposes. accumulated depreciation on such an asset through 2012 is, therefore,
different for federal and state purposes. This difference will remain
Line 11C. Add or subtract the amount necessary to make the until the asset is fully depreciated or until the time of its disposition.
adjusted gross income of the taxpayer that placed any IRC Section
179 property in service in the current taxable year or in an earlier So, in this example, the asset was acquired in January 2009 at a
taxable year equal to the amount of adjusted gross income that purchase price of $120,000. This normally would have a 25-year
would have been computed as if the federal limit for expensing recovery period, but IRC Sec. 168 allows for a 15-year recovery
under IRC section 179 was $25,000 as opposed to $1,000,000 period. Tax year 2012 is the last year ABC Company will have
(adjusted for inflation). reported a qualified restaurant equipment add-back until the end
of the 15-year recovery period.
Indiana has adopted an expensing cap of $25,000. This
modification affects the basis of the property if a higher Section If this asset was sold before being fully depreciated, the catch-up
179 limit was applied. The federal increase to a $1,000,000 modification would be reflected in the year of the sale. However, if
deduction was not allowed for purposes of calculating Indiana this property is held through 2023 (the 15th year of depreciation),
adjusted gross income. However, the $2,500,000 threshold for ABC Company will report a negative $9,600 catch-up add-back
phase-out (adjusted for inflation) is allowed for purposes of on the 2023 state tax return.
calculating Indiana AGI. The depreciation allowances in the
year of purchase and in later years must be adjusted to reflect the Reporting Certain Prior-Year Modifications
additional first-year depreciation deduction, including the special In certain cases, a modification in a prior year may have been
depreciation allowance for 100% bonus depreciation property, limited due to various federal limitations, including basis
until the property is sold or fully depreciated for Indiana purposes. limitations, passive loss limitations, and at-risk loss limitations.
Special rules may apply if the Section 179 expensing is taken Even though certain modifications may not apply to activities
against property acquired in a like-kind exchange. See Income during the current taxable year, you may be required to report a
Tax Information Bulletin #118 at www.in.gov/dor/files/reference/ modification when you have income against which to realize the
ib118.pdf for additional information. modification. Use the modification code for the year in which
the modification was actually accrued. This includes, but is not
Note. The net amount determined for the net bonus depreciation limited to, modifications required to be reported using 3-digit
or the IRC Section 179 add-back might be a negative figure Code 149 (Meal Deduction Add-Back) and Code 634 (COVID-
(because of a higher depreciation basis in subsequent years). If Related Employee Retention Credit Disallowed Expenses
it is, use a minus sign to denote that. (If the taxable income is a Deduction).
loss, this adjustment increases a loss when added back.) Enclose a
statement to explain the adjustment. The following add-backs and deductions should be entered on
lines 12A through 12D:
Line 11D. Deduct the amount of income from qualified utility
and plant patents included in federal taxable income as permitted Specified Research and Experimental Expenses Add-Back
under IC 6-3-2-21.7. (3-digit code: 154)
If you claimed a federal income tax deduction for specified
Note. Use a minus sign to denote the negative amount. For tax research and experimental expenses that are required to be
years beginning after Dec. 31, 2007, a portion of this income is amortized for federal purposes pursuant to IRC section 174, add
exempt from Indiana AGI. For more information, see Income back the amount of expenses you actually deducted for federal
Tax Information Bulletin #104 available at www.in.gov/dor/files/ income tax purposes. See the instructions for Code 641 for further
reference/ib104.pdf. information on the amount of expenses allowable as a deduction.
Lines 12 A, B, C, and D. Total Add-Backs Note. If after printing of these instructions, IRC Section 174
Enter any add-backs and deductions on lines 12A through 12D. is amended to allow immediate expensing of research and
Enter the name of the add-back/deduction, its 3-digit code, and experimental expenses and you elect to amortize those expenses,
its amount. Use a minus sign to denote a negative amount. Attach you cannot use this code and Code 641 to accelerate the
additional sheets if necessary. allowance of your expenses.
Adding Back Depreciation Expenses Example. Corporation DEF incurred $100,000 of specified
Several of the discontinued add-backs were created by timing research expenses in 2023. Corporation DEF reported $10,000
differences between federal and Indiana allowable expenses. of amortized expenses in 2023. Corporation DEF will use Code
Following is an example of how to report a difference: 154 to add back the $10,000 claimed for federal purposes and use
Code 641 to report $100,000 allowable for Indiana purposes. For
Example. ABC Company has qualified restaurant equipment. For 2024-2028, Corporation DEF will continue to use Code 154 to
federal tax purposes, they use the accelerated 15-year recovery period report timing differences.
for an asset placed in service in 2009. Since 2009, ABC Company has
FIT-20 Financial Institution Booklet 2023 Page 9
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Government or Civic Group Capital Contribution Deduction Line 16. Subtract an amount equal to a debt or portion of a debt
(3-digit code: 633) becoming worthless (IRC Sec. 166). If you have a recovery of an
Subtract any amount included in federal taxable income that are amount included in a bad debt deduction in prior years, reduce
capital contributions from a government or civic group and not the deduction by the amount of the recovery (applicable to
excluded under IRC Section 118. taxpayers not defined as a large bank under IRC Section 585(c)(2)
or Savings Association under IRC Section 593). If your recoveries
Small Employer Health Insurance Premium Deduction are in excess of your current-year bad debt deduction, report the
(3-digit code: 639) net amount as a negative number.
If you:
• claimed a federal tax credit for small employer health Line 17. Subtract an amount equal to any bad debt reserves
insurance premiums under IRC section 45R; and included in federal income because of accounting method
• would have been permitted a deduction for those premiums changes required by IRC Sec. 585(c)(3)(A) or IRC Section 593.
except for the disallowance under IRC section 280C(h),
you are permitted a deduction for the portion of the premiums Line 18. Total Deductions: Add lines 15 through 17.
disallowed for federal purposes. Use Code 639 to enter the
amount of premiums for which a deduction was disallowed for Line 19. Total Income Prior to Apportionment: Subtract line 18
federal purposes because you claimed a federal tax credit for small from line 14.
employer health insurance premiums.
State-chartered credit unions must begin on line 19 by entering
Specified Research and Experimental Expenses Deduction “adjusted gross income.” For state-chartered credit unions, “adjusted
(3-digit code: 641) gross income” equals the total transfers to undivided earnings,
If you claimed a federal income tax deduction for specified research minus dividends for that taxable year after statutory reserves are set
and experimental expenses that are required to be amortized for aside under IC 28-7-1-24. In other words, “adjusted gross income”
federal purposes pursuant to IRC section 174, deduct the amount can be defined as net transfers to undivided earnings. No other
of expenses paid or incurred in the current taxable year for federal deductions are permitted. The above definition also applies to a
income tax purposes. See the instructions for Code 154 for further nonresident credit union doing business in Indiana.
information on the amount of expenses required to be added back.
Do not claim this deduction for any research expenses for which a Investment companies, defined under IC 6-5.5-1-2(d), must
deduction is disallowed under IRC section 280C(c). begin on line 19 by reporting federal taxable income computed
according to the Internal Revenue Code plus interest on state and
Note. If after printing of this bulletin, IRC Section 174 is amended to local obligations acquired by the taxpayer after Dec. 31, 2011,
allow immediate expensing of research and experimental expenses and excluded from federal gross income under IRC section 103 ,
and you elect to amortize those expenses, you cannot use this code before any net operating loss deduction. An investment company
and Code 154 to accelerate the allowance of your expenses. must also complete line 12 of FIT-20 Schedule E-U.
Example. Corporation DEF incurred $100,000 of specified Line 20. Total Income Prior to Apportionment: Enter the
research expenses in 2023. Corporation DEF reported $10,000 of amount carried from line 19.
amortized expenses in 2023. Corporation DEF will use Code 641
to report $100,000 allowable for Indiana purposes and use Code Line 21. Apportionment Percentage: (See instructions for
154 to add back the $10,000 claimed for federal purposes. For Schedule E-U.) This line should be used by all taxpayers and
2024-2028, Corporation DEF will continue to use Code 154 to unitary groups. Enter the amount from line 15 of Schedule E-U.
report timing differences.
Line 22. Apportioned Adjusted Gross Income for Indiana:
Line 13. Total Add-Backs: Add lines 4 through line 12D. Multiply line 20, total income subject to apportionment, by line
21, apportionment percentage from Schedule E-U.
Line 14. Subtotal Income: Add line 3 and line 13.
Line 23. Indiana Net Capital Loss Adjustment: Enter your
Deductions from Income Indiana net capital loss carryover (see the sample worksheet on
Line 15. Subtract net income (foreign gross receipts less the page 11). Line 23 is limited to the amount on line 22. Also, line
foreign deductions) derived from sources outside the United 9 must be completed to add back an amount equal to the federal
States as defined in the Internal Revenue Code and included in net capital loss deduction.
federal taxable income. Include all repatriated dividend income
listed on the IRC 965 Transition Tax Statement and included Note. Excess capital losses may be carried forward for five years
in Line 1 of the FIT-20 on this line. Filers should keep detailed following the loss year; however, there is no provision for the
records as DOR can ask for this information at a later date. If you carryback of a capital loss incurred under the FIT.
have a net foreign loss, enter that amount as a negative number.
Page 10 FIT-20 Financial Institution Booklet 2023
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Net Capital Loss Adjustment for FIT-20 Line 23 – Sample Worksheet
Enclose with the return the worksheet that shows the following calculations. Use this format to determine the available amount of an Indiana
net capital loss and the remainder to carry forward. Add sheets to include all members of a unitary group. See the worksheet on page 12.
Computation of Indiana Net Capital Loss for Carryforward
For a taxpayer who is not filing a combined return, the taxpayer’s taxable income consists of an adjustment for net capital losses computed
under the Internal Revenue Code and derived from Indiana. Capital losses and capital gains derived from Indiana are determined by the
apportionment percentage applicable to each taxable year.
Example – Loss Year Ending 12-31-2022:
1. Net capital loss from federal Schedule D without IRC Section 1212 carryover ..............................................................................-$80,000
2. FIT-20 Indiana apportioned income percentage for the taxable year of the capital loss ..................................................................... 50%
3. Indiana net capital loss for carry forward (limited to succeeding five years) .................................................................................-$40,000
Additional provisions required for a combined return. Any net capital loss or net operating loss attributable to Indiana in the combined
return must be prorated between each member of the unitary group having nexus in Indiana. Each member must calculate its share of
the capital loss and amount available to be applied for the combined return.
The net capital loss attributable to Indiana in the combined return is prorated between each taxpayer member of the unitary group by
the quotient of:
a. The Indiana receipts of those taxpayer members attributable to Indiana, divided by;
b. The total receipts of all taxpayer members to Indiana.
Example:
Indiana receipts attributable to: Member A Member B Member C Combined Indiana Total
$6,000,000 $9,600,000 $8,400,000 $24,000,000
Member’s ratio of Indiana receipts: 25% 40% 35% 100%
Prorated share of Indiana net capital loss: -$10,000 -$16,000 -$14,000
Carry forward these amounts separately on the combined return.
Use this portion of the worksheet as many times as needed to determine the deductible net capital loss applied against any Indiana net
capital gains during the five-year carryforward period following the year of a loss.
Computation of Net Capital Loss Adjustment
The net capital loss available to be applied, if any, and carried forward to any subsequent year shall be limited to the capital gains for
the subsequent year of each taxpayer member. The amount of net capital gains is determined by the same receipts formula used in
computing the amount of loss derived from Indiana and is prorated between members of a unitary group (IC 6-5.5-2-1).
Example – Gain Year Ending 12-31-2023:
4. Net capital gain from federal Schedule D (recomputed without any IRC Section 1212 unused capital loss carryover) ............$50,000
5. FIT-20 Indiana apportioned income percentage for the taxable year ..................................................................................................... 60%
6. Available Indiana net capital gain for the year......................................................................................................................................$30,000
Example for members of a unitary group filing a combined return having a net capital gain in 2023:
Indiana receipts attributable to: Member A Member B Member C Combined Indiana Total
$5,000,000 $35,000,000 $10,000,000 $50,000,000
Member’s ratio of Indiana receipts: 10% 70% 20% 100%
Prorated share of Indiana net capital loss: -$3,000 -$21,000 -$6,000
Application of Indiana Net Capital Loss Adjustment
Enter the unused net capital loss from loss year (prorated amounts) or remaining amount(s) of each member as reduced during each of
the intervening years following the year of loss. The current year adjustment for Indiana is limited to the unused amount of net capital
loss, up to the amount of the net capital gains prorated for each member.
Member A Member B Member C
Amount of Loss Applied to (2023): $3,000 $16,000 $6,000
7. Combined total of Indiana net capital loss adjustment for the tax year. Carry to line 23 of Form FIT-20 .............................. $25,000
Note. This amount may be applied only up to the amount of the current year’s income tax liability.
8. Remaining share of taxable capital -0- $5,000 -0-
gain and (unused net capital loss): -$7,000 -0- $8,000 (Share of carryover to 2023)
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Summary of Total Indiana Net Capital Loss Carryover(s)
Compile for each year the total amount of net capital loss applied against net capital gains. The gain or loss available is limited to the
amount of each taxpayer member’s portion as apportioned to Indiana. For net capital loss carryovers from two or more years, show
amounts applied through all carryforward years. Unused net capital loss from loss years occurring since 2018, after application against
any net capital gains, may be carried through taxable year 2023.
Combined total Indiana net capital gains for each year.
Example of
carryover Enter 2019 2020 2021 2022 2023
below total Indiana $ $ $ $ $30,000 Carryover(s) of unused prorated
net capital loss from
net capital losses available
loss year(s): Total amount of Indiana net capital loss applied against
prorated net capital gains in each year for 2024
2018 -$
2019 -$
2020 -$
2021 -$
2022 -$40,000 -$25,000 -$15,000
Remaining taxable
net capital gains $5,000
Instructions for Schedule A, continued expressed as a percentage, by the total amount of tax due to
determine the amount of tax attributable to the loan. This is the
Line 24. Total Adjusted Gross Income: Subtract line 23 from line amount of credit that may be available. The actual credit is equal
22. If subtotal is less than zero, enter 0. to the lesser of the actual taxes paid to the domiciliary state for
the loan transaction and the amount due to Indiana on the loan
Line 25. Indiana Net Operating Loss Deduction: The amount transaction. If the taxpayer’s domiciliary state grants a credit
to report on this line is the Indiana portion of the net operating for taxes paid to other states, the credit available for purposes of
loss, and it cannot exceed the amount reported on line 24. Net Indiana’s tax must be reduced by the amount of the credit granted
operating losses can be carried forward for 15 years. There is no by the taxpayer’s domiciliary state. (See the instructions for
provision for net operating loss carrybacks. Complete and enclose completing Schedule FIT-NRTC on page 20.)
Schedule FIT-20NOL with the return.
Nonresident credits are determined for each taxpayer member
Line 26. Indiana Adjusted Gross Income: Subtract line 25 from of a unitary group on an individual basis, notwithstanding that
line 24. the adjusted gross income is reported on a combined basis for all
members of a unitary group.
Line 27. Indiana Financial Institution Tax Due: Multiply the
amount on line 26 by the current tax rate. If line 26 is a loss Line 29. Net Financial Institution Tax Due: Subtract the amount
amount, enter zero on this line. on line 28 from the amount on line 27.
Effective for taxable years beginning after Dec. 31, 2022, financial Line 30. Use Tax Due: Taxpayers are required to report and pay
institutions are subject to a FIT under IC 6-5.5 at 4.9%. 7% use tax on taxable purchases. Purchases subject to use tax
include (but are not limited to) subscriptions to magazines and
Line 28. Nonresident Taxpayer Credit (816): To claim this periodicals as well as property that is purchased exempt from tax
credit, enclose a copy of the domiciliary state’s tax return. and that is later converted to a nonexempt use by the business. To
Nonresident taxpayers might be able to claim a credit for taxes calculate the amount of purchases subject to the use tax, please
paid to domiciliary states. To be eligible to claim the credit, the complete the worksheet on page 13.
following conditions must be met: (1) the receipt of interest or
other income from the loan is attributed to both the domiciliary For more information regarding use tax, visit www.in.gov/dor or
state and also to Indiana; and (2) the principal amount of the loan call 317-232-2240.
is at least $2 million.
Line 31. Subtotal Due: Add line 29 and line 30.
To determine the amount of tax attributable to the loan
transaction, divide the total receipts from qualified loans by the
total receipts attributable to Indiana. Multiply that quotient,
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Tax Liability Credits — Limited to One Per Project Line 32. Neighborhood Assistance Tax Credit 828
If you made a contribution or engaged in activities to upgrade
Restriction for Certain Tax Credits – Limited to One Per Project areas in Indiana, you may be able to claim a credit for this
Within a certain group of credits, a taxpayer may not be granted assistance. Contact the Indiana Housing & Community
more than one credit for the same project. You can choose the Development Authority, Neighborhood Assistance Program, 30 S.
credit to be applied. However, the credit selected cannot be Meridian, Suite 1000, Indianapolis, IN 46204, telephone number
changed nor can the investment be redirected for a different credit 317-232-7777 (800- 872-0371 outside Indianapolis), for more
in subsequent years. See Income Tax Information Bulletin #59 at information. Pass-through entities are eligible for the credit.
www.in.gov/dor/files/reference/ib59.pdf for more information.
Line 33. Enterprise Zone Employment Expense Tax Credit 812
Six credits are included in this group: This credit is based on qualified investments made within an
1. Alternative fuel vehicle manufacturer credit; Indiana enterprise zone. It is the lesser of 10% of qualifying
2. Community revitalization enhancement district credit; wages or $1,500 per qualified employee, up to the amount of tax
3. Enterprise zone investment cost credit (not applicable to FIT-20); liability on income derived from an enterprise zone. Enclose the
4. Hoosier business investment credit; completed Schedule EZ 1, 2, 3 with the return, otherwise the
5. Industrial recovery credit; and credit will be denied.
6. Venture capital investment credit.
Find the Indiana Schedule EZ 1, 2, 3 at www.in.gov/dor/tax-
Order of Credit Application forms/enterprise-zone-forms for more information on how to
If claiming more than one credit, first use the credits that cannot calculate this credit.
be carried over and applied against the state FIT in another year.
Next, use the credits that can be carried over for a limited number Line 34. Enterprise Zone Loan Interest Tax Credit 814
of years and applied against the state FIT. If one or more credits This credit is allowed for up to 5% of the interest received from all
are available, apply the credits in the order that the credits would qualified loans made during a tax year for use in an active Indiana
expire. Finally, use the credits that can be carried over and applied enterprise zone.
against the state FIT in another year.
See Income Tax Information Bulletin #66 available at www.in.gov/
Example. A taxpayer has a neighborhood assistance credit for dor/tax-forms/enterprise-zone-forms for more information on
which no carryover is available, a school scholarship credit that how to calculate this credit.
can be carried forward to 2024, and a community revitalization
enhancement district credit with an indefinite carryforward. The Note. Schedule LIC must be enclosed if claiming this credit; it is
taxpayer would apply the credits in the following order until the available at www.in.gov/dor/tax-forms/enterprise-zone-forms.
credit is exhausted or the taxpayer’s liability is reduced to zero, Contact the Indiana Economic Development Corporation at 1
whichever comes first: N. Capitol Ave., Suite 700, Indianapolis, IN 46204; call them at
• Neighborhood assistance credit 317-232-8800; or visit the IEDC website at www.iedc.in.gov for
• School scholarship credit expiring in 2024 additional information.
• Community revitalization enhancement district credit
Enclose Schedule LIC with the return, otherwise the credit will be
For more information about Indiana tax credits, see Income denied.
Tax Information Bulletin #59 available at www.in.gov/dor/files/
reference/ib59.pdf.
Sales/Use Tax Worksheet
List all purchases made during the tax year from out-of-state retailers.
Column A Column B Column C
Description of personal property purchased from out-of-state retailer Date of purchase(s) Purchase Price of
Property(s)
Magazine subscriptions:
Mail order purchases:
Internet purchases:
Other purchases:
1. Total purchase price of property subject to the sales/use tax: enter total of Columns C .............................. 1
2. Sales/use tax: Multiply line 1 by .07 (7%) ..................................................................................................... 2
3. Sales tax previously paid on the above items (up to 7% per item) ............................................................... 3
4. Total amount due: Subtract line 3 from line 2. Carry to Form FIT-20, line 30. If the amount is negative,
enter zero and put no entry on line 30 of the FIT-20 ..................................................................................... 4
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Note. Claimants must be in good standing to remain eligible for the Line 42. Other Payments/Credits
enterprise zone loan interest credit. The term “zone business” includes Enter any other payments that are allowable and enclose an
an entity that claims certain tax benefits available to businesses explanation. For pass-through entity tax and composite/
located in an enterprise zone. A taxpayer can claim the enterprise withholding payments, include a copy of the Schedule IN K-1
zone loan interest credit only if that taxpayer pays a registration reflecting the credit.
fee, provides additional assistance to urban enterprise associations
required of zone businesses, and complies with the requirements Headquarters Relocation Credit (refundable portion)
adopted by the Indiana Economic Development Corporation. This Generally, this credit is nonrefundable. Beginning with the 2019
credit is also not available for loans made after December 31, 2017. tax year, some or all of this credit may be refundable. This credit is
administered by the Indiana Economic Development Corporation
Lines 35 and 36 – Other Tax Liability Credits Available to (IEDC). If the IEDC has determined some or all of this credit to be
Financial Institutions refundable, enter on this line the refundable amount of the credit
Claim other allowable tax liability credits by entering the name, less the portion of the credit used to offset your tax liability. You
credit ID code number, and amount using line 35 or 36 (see must maintain the documentation provided to you that supports
page 16 for a list of credits available for these lines). The total the refundable portion of this credit as DOR may request it.
nonrefundable tax liability credit is limited to the amount of
income tax on line 29, unless otherwise noted. If your claim For more information (including limitations on the credit and the
exceeds the amount of your tax liability, adjust by recalculating application process), see Income Tax Information Bulletin #97,
the credit to the amount that you can apply. If you qualify for available at www.in.gov/dor/files/reference/ib97.pdf.
the refundable Economic Development for a Growing Economy
(EDGE) job retention credit, claim that credit on line 43. Line 43. Economic Development for a Growing Economy
Credit (EDGE)
A detailed explanation or supporting schedule must be enclosed Claim the approved Economic Development for a Growing
with the return when claiming any credits on lines 35, 36, 43, and Economy (EDGE) credit on this line. Enter the amount from
44. See Income Tax Information Bulletin #59 available at www. line 19 of Schedule IN-EDGE here. This credit is for businesses
in.gov/dor/files/reference/ib59.pdf for more information about that conduct certain activities designed to foster job creation in
the Indiana tax credits available to taxpayers. Indiana. It is a refundable tax liability credit.
Line 37 – Certified Credits Available to Financial Institutions Note. Complete Schedule IN-EDGE and enclose it with the return,
If you are claiming any credits on Schedule IN-OCC, including otherwise the credit will be denied. Obtain a PIN from the IEDC.
credits passed through from Schedule IN K-1 Part 2, enter the total
of those credits here and enclose Schedule IN-OCC with you return. Contact the Indiana Economic Development Corporation at One
The credit codes reported on Schedule IN-OCC are 818, 820, 835, North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility
849, 858, 860, 863, 865, 867, 868, 869, 1818, 1820, 1835, 1849, 1858, requirements. Call 317-232-8800 or visit www.iedc.in.gov for
1860, 1863, 1865, 1867, 1868, and 1869. additional information.
Line 38. Total Credits Line 44. Economic Development for a Growing Economy
Add the amounts on lines 32 through 37. Retention Credit (EDGE-R)
Claim the approved Economic Development for a Growing
Line 39. Total Tax Due Economy Retention Credit on this line. Enter the amount from
Subtract the amount on line 38 from the amount on line 31. line 19 of Schedule IN-EDGE-R here.
Line 40. Total Estimated Tax Paid This credit is for businesses that conduct certain activities designed to
Enter the total amount of estimated tax paid for the taxable year. foster job retention in Indiana. It is a refundable tax liability credit.
Itemize each quarterly payment in the spaces provided.
Note. Complete Schedule IN-EDGE-R and enclose it with the return,
List all members included in a combined return by completing otherwise the credit will be denied. Obtain a PIN from the IEDC.
FIT-20 Schedule H. Show any amount of estimated tax you are
claiming that might have been paid by a member under the Contact the Indiana Economic Development Corporation at One
federal employer identification number. North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility
requirements. Visit www.iedc.in.gov for additional information.
Line 41. Extension Payment and Prior Year Overpayment
Enter on line (a) the payment made resulting from an extension of Line 45. Total Payments
time to file request, and on line (b) list your carryover credit of a Add lines 40 through 44.
prior-year overpayment. This provision is applicable to a prior-year
overpayment of the financial institution tax only. Indiana will accept Line 46. Balance of Tax Due
the federal extension date, plus an additional one month. However, Subtract line 45 from line 39.
an extension of time to file is not an extension of time to pay. You
must pay at least 90% of the current year liability by the original due Line 47. Penalty for Underpayment
date of the FIT return. Enter the total amount on line 41. Enter the penalty, if any, for underpayment of estimated tax.
Page 14 FIT-20 Financial Institution Booklet 2023
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Complete and enclose Schedule FIT-2220 to determine if the
underpayment of estimated tax penalty or an exception to the
Certification of Signatures and
penalty applies.
Authorization Section
Note. If a taxpayer’s annual liability exceeds $2,500, filing Sign, date, and print the corporation name on the return. If a paid
quarterly estimated payments to remit 25% of the estimated preparer completes the return, authorize DOR to discuss the tax
annual tax liability is required. return with the preparer by checking the authorization box above
the line for the name of the personal representative.
Line 48. Interest
If payment is made after the original due date, interest must be Personal Representative Information
included with the payment. Interest is calculated from the original Typically, DOR contacts the corporation if there are any questions
due date of the return until the date of payment. or concerns about the tax return. If DOR is authorized to discuss
the tax return with someone else (e.g., the person who prepared it
For the current rate of interest charged see Departmental Notice or a designated person), complete this area.
#3 available at www.in.gov/dor/files/reference/dn03.pdf, or call
DOR at 317-232-2240. First, check the “Yes” box that follows the sentence “I authorize
the Department to discuss my tax return with my personal
An extension of time to file the return does not grant an extension representative.”
of time to pay any tax due; therefore, interest must be calculated.
Next, enter:
Line 49. Late Penalty • The name of the individual designated as the corporation’s
Enter the computed penalty amount that applies. personal representative; and
• The individual’s email address.
If a payment is made after the original due date, a penalty that is
the greater of $5 or 10% of the remaining tax due must be entered. If this area is completed, DOR is authorized to contact the
The penalty for late payment or late filing will not be imposed if personal representative, instead of the corporation, about this
all three of the following conditions are met: tax return. After the return is filed, DOR will communicate
1. A valid extension of time to file exists; primarily with the designated personal representative on matters
2. At least 90% of the tax was paid by the original due date; and concerning the return.
3. The remaining tax and interest due is paid by the extended
due date. Note. The authorization for DOR to be in contact with a personal
representative can be revoked at any time. To do so, submit a signed
If the return showing no tax liability (on line 31) is filed late, the statement to DOR. The statement must include a name, Federal
penalty for failure to file by the due date will be $10 for each day Employer Identification Number of the corporation, and the year
that the return is past due, up to a maximum of $250. of the tax return. Mail the statement to Indiana Department of
Revenue, P.O. Box 7206, Indianapolis, IN 46207-7206.
Line 50. Total Due
Add lines 46 through 49. If a payment is due, enter the total Officer Information
tax due plus any applicable penalty and interest. Payment can An officer of the organization must sign and date the tax return
be made electronically via INTIME, DOR’s e-services portal and enter the officer’s name and title. Please provide a daytime
at intime.dor.in.gov, or checks should be made payable to the telephone number DOR can call if there are any questions about
Indiana Department of Revenue for each Form FIT-20 filed. All the tax return. Also, provide an email address if contact via email
payments must be made in U.S. funds. is desired.
Lines 51, 52, and 53. Total Overpayment Paid Preparer Information
If the taxpayer has an overpayment determined by subtracting the Fill out this area if a paid preparer completed this tax return. The
amounts on lines 39, 47, and 49 from the amount on line 45, the paid preparer must sign and date the return. In addition, please
corporation can elect to have a portion or all of its overpayment enter the following:
credited to following year’s estimated tax account. The portion to • The paid preparer’s email address;
be refunded should be entered on line 52, and the portion to be • The name of the firm the paid preparer is employed by;
applied to next year’s account should be entered on line 53. The • The paid preparer’s PTIN (personal tax identification
total of line 52 and line 53 must equal the amount on line 51. number). This must be the paid preparer’s PTIN; do not enter
an FEIN or Social Security number;
An election to apply an overpayment to the following year is • The paid preparer’s complete address.
irrevocable. If your overpayment is reduced due to an error on
the return or an adjustment by DOR, the amount to be refunded Note. Complete this area even if the paid preparer is the same
will be corrected before any changes are made to the estimated individual designated as the personal representative.
account for next year. A refund may be set off and applied to other
liabilities under IC 6-8.1-9-2(a) and 6-8.1-9.5 before it is credited
to the following year’s estimated tax account.
FIT-20 Financial Institution Booklet 2023 Page 15
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This credit is administered by the IEDC. Contact them at One
North Capitol, Suite 700, Indianapolis, IN 46204, via website at
Mailing Options
Please mail completed returns to: www.iedc.in.gov, or by phone at 317-232-8800.
Indiana Department of Revenue
P.O. Box 7228 The approved credit must be reported on Schedule IN-OCC,
Indianapolis, IN 46207-7228 found at www.in.gov/dor/tax-forms/2023-individual-income-tax-
forms. Make sure to enclose this schedule with your tax filing. If
you are claiming this credit as an owner of a pass-through entity
such as S corporations, partnerships, limited liability companies,
Other Tax Liability Credits Available to etc., make sure to keep Schedule IN K-1 with your records as
Financial Institutions DOR can require you to provide this information.
Alternative Fuel Vehicle Manufacturer Credit 845 Ethanol Production Credit 815
This credit has been repealed. However, any previously approved This credit has been repealed. However, any previously approved
yet unused credit is available to be claimed. yet unused credit is available to be claimed.
Note. See the section “Restriction for Certain Tax Credits - Film and Media Production Tax Credit 869
Limited to One per Project” on page 13. Effective July 1, 2022, a credit is available for expenses incurred
for qualified film and media production expenses. The amount
Community Revitalization Enhancement District of the taxpayer’s credit is equal to the taxpayer’s qualified film
Credit 808 and media production expenses multiplied by a percentage
A state and local income tax liability credit is available for a determined by the Indiana Economic Development Corporation,
qualified investment for the redevelopment or rehabilitation of but not more than 30% of the expenses.
property within a community revitalization enhancement district.
Note. Certification for this credit must be obtained from the
To be eligible for the credit, the intended expenditure plan must Indiana Economic Development Corporation. See iedc.in.gov/
be approved by the IEDC before the expenditure is made. The indiana-advantages/investments/film-and-media-tax-credit for
credit is equal to 25% of the IEDC-approved qualified investment further information.
made by the taxpayer during the tax year. DOR has the authority
to disallow any credit if the taxpayer: This credit must be reported on Schedule IN-OCC, found at www.
• Ceases existing operations; in.gov/dor/tax-forms/2023-corporatepartnership-income-tax-
• Substantially reduces its operations within the district or forms. Make sure to enclose this schedule with your tax filing.
elsewhere in Indiana; or
• Reduces other Indiana operations to relocate them into the Enclose the certification letter from the IEDC with the return,
district. otherwise the credit will be denied.
The taxpayer can assign the credit to a lessee who remains subject Foster Care Donations Credit 867
to the same requirements. The assignment must be in writing. A credit for donations to qualifying foster care organizations
Also, any consideration may not exceed the value of the part of is available. In addition, beginning July 1, 2023, a credit for
the credit assigned. Both parties must report the assignment on qualifying contributions to the Insuring Foster Youth Trust Fund
the state income tax returns for the year of assignment. is also available. The credit is 50% of the donation made, up to
a maximum of $10,000 per taxable year. In addition, no more
Contact the Indiana Economic Development Corporation at One than $2,000,000 in credits can be awarded during a calendar
North Capitol, Suite 700, Indianapolis, IN 46204, or visit the IEDC year. See www.in.gov/dor/tax-forms/foster-care-credit-donation-
website at www.iedc.in.gov for more information about this credit. information/ for further information regarding the application
and approval process.
Note. See the section “Restriction for Certain Tax Credits -
Limited to One per Project” on page 13. This credit must be reported on Schedule IN-OCC, found at www.
in.gov/dor/tax-forms/2023-corporatepartnership-income-tax-
Economic Development for a Growing Economy - forms. Make sure to enclose this schedule with your tax filing.
Nonresident Employees (EDGE-NR) 865
This credit is for incremental state income tax amounts that would Enclose the approval letter from the Department of Revenue with
have been withheld on employees from reciprocal states if those the return, otherwise the credit will be denied.
employees had been subject to Indiana state tax withholding.
Headquarters Relocation Credit 818
Owners of pass-through entities such as S corporations, A business may be eligible for a credit if it meets one of two sets
partnerships, limited liability companies, etc., are eligible for this of criteria. The first set of criteria (“first test”) is that the business
credit. Unlike the EDGE and EDGE-R credits, the EDGE-NR meets all of the following:
credit is a non-refundable credit. • Has an annual worldwide revenue of $50 million;
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• Has at least 75 Indiana employees (for credits awarded before This credit is administered by the IEDC. Contact IEDC at One
July 1, 2022); and North Capitol, Suite 700, Indianapolis, IN 46204. Visit the IEDC
• Relocates its corporate headquarters to Indiana. website at www.iedc.in.gov or call them at 317-232-8800. Please
see Income Tax Information Bulletin #95 available at www.in.gov/
The second set of criteria (“second test”) is that the business meets dor/files/reference/ib95.pdf for additional information. Submit
either (1) or (2), meets (3), and meets (4) or (5): a copy of the certificate from the IEDC verifying the amount of
1. Received at least $4 million in venture capital in the tax credit for the taxable year to DOR with the FIT-20 return,
six months immediately preceding the business’s application otherwise the credit will be denied.
for this tax credit.
2. Closes on at least $4,000,000 in venture capital not more than Note. See the section “Restriction for Certain Tax Credits -
six months after submitting the business’s application for this Limited to One per Project” on page 13.
tax credit.
3. Has at least 10 Indiana employees (for credits awarded before Claim this credit on Schedule IN-OCC.
July 1, 2022).
4. Relocates its corporate headquarters to Indiana. Individual Development Account Credit 823
5. Relocates the number of jobs equal to 80% of the business’s A credit is available for qualified contributions made to a
total payroll during the immediately preceding quarter to an community development corporation participating in an
Indiana location. Individual Development Account (IDA) program. The IDA
program is designed to assist qualifying low-income residents
The credit may be as much as 50% of the cost incurred in in accumulating savings and building personal finance skills.
relocating the taxpayer’s headquarters. For more information The organization must have an approved program number from
(including limitations on the credit and the application process), the Indiana Housing and Community Development Authority
see Income Tax Information Bulletin #97, available at www. (IHCDA) before a contribution qualifies for preapproval. The
in.gov/dor/files/reference/ib97.pdf. credit is equal to 50% of the qualified contribution, which must
not be less than $100 and not more than $50,000.
This credit must be reported on Schedule IN-OCC, found at www.
in.gov/dor/tax-forms/2023-corporatepartnership-income-tax- Applications for the credit are filed through the IHCDA. To
forms. Make sure to enclose this schedule with your tax filing. request additional information about the definitions, procedures,
and qualifications for obtaining this credit, contact the Indiana
This credit is administered by the IEDC. You may contact them at Housing and Community Development Authority, 30 S. Meridian
One North Capitol, Suite 700, Indianapolis, IN 46204, via website Street, Suite 1000, Indianapolis, IN 46204, 317-232-7777.
at www.iedc.in.gov, or by phone at 317-232-8800.
Keep any approval certification or letter of credit assignment with
Submit a copy of the certificate from the Indiana Economic your records as DOR can require you to provide this information
Development Corporation verifying the amount of tax credit for the at a later date.
taxable year with the return. Otherwise, the credit will be denied.
Industrial Recovery Credit 824
Important. If the IEDC has granted a refundable credit under This credit is based on a taxpayer’s qualified investment in a vacant
the second test, see the instructions on page 14 for completing industrial facility located in a designated industrial recovery site.
Form FIT-20, Line 42. If the Indiana Economic Development Corporation approves the
application and the plan for rehabilitation, you are entitled to a
Hoosier Business Investment Credit 820 credit based on the “qualified investment.” The minimum age for a
This credit is for qualified investments, including costs associated facility to be eligible for this credit has been reduced from 20 years
with the following: to 15 years. This credit is available to pass-through entities such as
• Constructing special-purpose buildings and foundations; S corporations, partnerships, limited liability companies, etc.
• Making onsite infrastructure improvements;
• Modernizing existing equipment; Note. Except for in situations described in the next sentence,
• Purchasing equipment used to make motion pictures or a taxpayer is entitled to receive this credit only for a qualified
audio production; investment made before January 1, 2020. A taxpayer is entitled to
• Purchasing or constructing new equipment directly related to receive a credit for a qualified investment made after December
expanding the workforce in Indiana; 31, 2019, and before January 1, 2030, if the taxpayer is awarded a
• Retooling existing machinery and equipment; credit under:
• Constructing or modernizing transportation or logistical • an application approved by the Indiana Economic
distribution facilities; Development Corporation (IEDC) before January 1, 2020; or
• Improving the transportation of goods via highway, rail, air, • an agreement entered into by the taxpayer and IEDC before
or water; and January 1, 2021.
• Improving warehousing and logistical capabilities.
• Purchasing new pollution control, energy conservation, or Important. Any unused credit existing before Jan. 01, 2020, is still
renewable energy generation equipment; and eligible for carryforward for an unlimited number of years.
• Purchasing new onsite digital manufacturing equipment.
FIT-20 Financial Institution Booklet 2023 Page 17
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For additional information regarding procedures for obtaining Riverboat Building Credit 832
this credit, contact: This credit has been repealed. However, any previously approved
Indiana Economic Development Corporation yet unused credit is available to be claimed. Enclose certification
One North Capitol, Suite 700 from the IEDC, the credit assignment, and proof of investment
Indianapolis, IN 46204 with the return. Otherwise, the credit will be denied.
Call 317-232-8800, or visit their website at www.iedc.in.gov.
School Scholarship Credit 849
Military Base Investment Cost Credit 826 A credit is available for contributions to school scholarship
This credit has been repealed. However, any previously approved programs. A taxpayer that makes a qualifying contribution to a
yet unused credit is available to be claimed. scholarship granting organization (SGO) is entitled to a credit
against the state tax liability in the taxable year in which the
Military Base Recovery Credit 827 contribution is made. The amount of a taxpayer’s credit is equal
This credit has been repealed. However, any previously approved to 50% of the amount of the contribution made to the SGO for a
yet unused credit is available to be claimed. school scholarship program. In some cases, the department may
round the credit down to the nearest dollar if the department
Mine Reclamation Credit 874 receives information that the credit should be the amount as
A credit is available for a qualified investment at a mine rounded down. Effective Jan. 1, 2013, this credit can now be
reclamation site. carried forward for nine years after the unused credit year.
To be eligible for the credit, the credit must be approved by the Note. Credits that apply to taxable years beginning before Jan. 1,
IEDC. The credit for a taxable year cannot exceed 30% of the 2013, may not be carried forward.
IEDC-approved qualified investment for the taxable year or
$5,000,000, whichever is less. To qualify for the credit, the taxpayer must:
• Make a contribution to a scholarship granting organization that
The taxpayer claiming this credit must provide a copy of the IEDC is certified by the Department of Education under IC 20-51;
certification of the credit. However, if a taxpayer is claiming the • Make the contribution directly to the SGO;
credit as an owner of a pass through entity, the taxpayer must • Designate in writing to the SGO that the contribution is to be
have a Schedule IN K-1 reporting the claimed credit. The pass used solely for a school scholarship program or have written
through entity must provide and retain the certification by IEDC. confirmation from the SGO that the contribution will be used
solely for a program.
The taxpayer can assign the credit to a lessee who remains subject
to the same requirements. The assignment must be in writing. Although there are no limits on the size of a qualifying contribution
Also, any consideration may not exceed the value of the part of to an SGO, the entire tax credit program has a limit of $18.5 million
the credit assigned. Both parties must report the assignment on in credits per state fiscal year.
the state tax returns for the year of assignment.
Enclose Schedule IN-OCC with the return to claim this credit,
Natural Gas Commercial Vehicle Credit 858 otherwise the credit will be denied.
This credit has sunset. However, any previously approved yet
unused credit is available to be claimed. Venture Capital Investment Credit 835
A taxpayer who provides qualified investment capital to a
The carryforward portion of the previously approved credit being qualified Indiana business may be eligible for this credit. Per IC
claimed must be reported on Schedule IN-OCC, found at www. 6-3.1-24-8, for calendar years beginning after Dec. 31, 2010, the
in.gov/dor/tax-forms/2023-corporatepartnership-income-tax- maximum credit available to a qualified business is $1 million.
forms. Make sure to enclose this schedule with your tax filing.
Note. Certification for this credit must be obtained from the
Redevelopment Tax Credit 863 Indiana Economic Development Corporation, Development
You may be eligible for a credit if you make a qualified investment Finance Office, VCI Credit Program, One North Capitol, Suite
for the redevelopment or rehabilitation of real property located 700, Indianapolis, IN 46204.
within a qualified redevelopment site.
Beginning with the 2020 tax year, this credit must be reported on
This credit is administered by the Indiana Economic Development Schedule IN-OCC, found at www.in.gov/dor/tax-forms/2023-
Corporation (IEDC), One North Capitol, Suite 700, Indianapolis, corporatepartnership-income-tax-forms. Make sure to enclose
IN, 46204. Visit the IEDC website at www.iedc.in.gov or call 317- this schedule with your tax filing.
232-8800 for additional information.
Apply online through the IEDC’s website at www.iedc.in.gov or
The approved credit must be reported on Schedule IN-OCC, found call 317-232-8800 for more information.
at www.in.gov/dor/tax-forms/2023-corporatepartnership-income-
tax-forms. Make sure to enclose this schedule with your tax filing. Note. See the section “Restriction for Certain Tax Credits -
Limited to One per Project” on page 13.
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Enclose the certification letter from the IEDC with the return, • Interest income and other receipts from consumer loans not
otherwise the credit will be denied. secured by real or tangible personal property if the loan is
made to a resident of Indiana.
Venture Capital Investment Credit – Qualified • Interest income and other receipts from commercial loans
Indiana Investment Fund 868 not secured by real or tangible personal property must be
A taxpayer who provides qualified investment capital (either debt attributed to Indiana if the proceeds of the loan are to be
or equity capital) to a qualified Indiana investment fund may be applied in Indiana. If it cannot be determined where the
eligible for this credit. loan proceeds will be applied, the income and receipts are
attributed to the state where the borrower applied for the
Note. Certification for this credit must be obtained from the loan.
Indiana Economic Development Corporation, Development • Fee income and other receipts from letters of credit,
Finance Office, VCI Credit Program, One North Capitol, Suite acceptance of drafts, and other devices for guaranteeing loans
700, Indianapolis, IN 46204. must be attributed in the same manner as commercial loans
are attributed.
This credit must be reported on Schedule IN-OCC, found at www. • Interest income, merchant discounts, and other receipts
in.gov/dor/tax-forms/2023-corporatepartnership-income-tax- (including service charges from financial institution credit
forms. Make sure to enclose this schedule with your tax filing. card and travel and entertainment card receivables) must be
attributed to the state where the card charges are regularly
Apply online through the IEDC’s website at www.iedc.in.gov or billed.
call 317-232-8800 for more information. • Receipts from the sale of a tangible or an intangible asset
must be attributed to the same state where the income from
Enclose the certification letter from the IEDC with the return, the tangible or intangible asset was attributed. Receipts
otherwise the credit will be denied. Do not claim this credit before attributed to Indiana can include receipts of dividends and
July 1, 2023. interest from stocks, bonds, and other securities issued by an
Indiana resident taxpayer. Income from intangible property
that is located in Indiana and is controlled from an Indiana
business situs may be attributed to Indiana.
Instructions for FIT-20 Schedule E-U • Receipts from the performance of fiduciary and other
Apportionment of Receipts to Indiana services must be attributed to the state where the benefits of
This schedule is on page 3 of the return. The following the services are consumed.
information must be completed by all taxpayers, including those • Receipts from the issuance of traveler’s checks, money orders,
taxpayers filing combined unitary returns. Investment companies or United States savings bonds must be attributed to the state
must complete line 12. Credit unions must report adjusted gross where the item was purchased.
income for a taxable year based on total transfers to undivided • Receipts from investments of a financial institution in
earnings minus dividends for that taxable year after statutory securities of this state and its political subdivisions, agencies,
reserves are set aside under IC 28-7-1-24. and instrumentalities must be attributed to Indiana.
• Interest income and receipts from a participation loan must
The Indiana Financial Institution Tax is imposed on apportioned be attributed in the same manner as the loan is attributed. A
income. Taxpayers and unitary groups must file using an participation loan is a loan in which more than one lender is
apportionment percentage based on a single-factor formula. a creditor to a common borrower.
Unitary groups will compute the factor based on the combined • The aggregate of gross payments collected by an investment
receipts of the group. company from the business upon investment contracts issued
by the company and held by Indiana residents is attributed to
The single-factor formula is derived by dividing the gross receipts Indiana.
attributable to transacting business in Indiana by the total receipts • Other receipts from non-municipal investment income are
from transacting business in all taxing jurisdictions. This fraction to be reported in the denominator of the apportionment
is expressed as a percentage carried to two decimal places (e.g., factor to the extent they are included as gross income for
67.63). The total income from line 19 is then multiplied by this federal tax purposes. “Non-municipal investments” means
percentage to arrive at Indiana financial institution adjusted gross income from U.S. treasuries, federal agencies (e.g., GNMA,
income. FNMA, Freddie Mac, other loan-backed securities, etc.), and
corporate securities. Any non-municipal investment receipts
The following types of receipts are attributable to Indiana: that are for the disposition of assets such as securities and
• Receipts from the lease or rental of real or tangible personal money market transactions are limited to the gain that is
property if the property is located in Indiana. recognized upon the disposition in accordance with IC 6-5.5-
• Interest income and other receipts from assets in the nature 4-2(1).
of loans or installment sales that are secured by or deal
primarily with real or tangible personal property that is
located in Indiana.
FIT-20 Financial Institution Booklet 2023 Page 19
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• Principal Business Activity Code: Enter the principal
business activity code, from the North American Industry
Instructions for Filing a Combined
Classification System (NAICS), in the designated block of the
Return: Attributing Receipts of a return. Use the six-digit activity code reported on the federal
Taxpayer Filing a Combined Return corporation income tax return.
• Quarterly Payments of Estimated Tax: Indicate for each member
List members included in the combined return by completing if quarterly estimated payments of the financial tax were made
FIT-20 Schedule H on page 4 of the return. When calculating by the member under its own federal employer identification
adjusted gross income, the taxpayer must eliminate all income number. If estimated tax payments were made, indicate whether
and deductions from transactions between entities that are payments were made on Form IT-6 or Form FT-QP.
included in the unitary filing.
• A taxpayer filing a combined return for a unitary group List members included in the combined return by completing
shall determine the income for a taxable year attributable to FIT-20 Schedule H.
Indiana using the following formula:
ο The aggregate adjusted gross income, from whatever source
derived, of the taxpayer members of the unitary group; Instructions for Schedule FIT-NRTC –
multiplied by
ο The quotient of: Nonresident Tax Credit
The receipts of all the taxpayer members of the The FIT-NRTC schedule is used to claim the nonresident taxpayer
unitary group attributable to transacting business in credit for taxes paid to the state of commercial domicile and
Indiana; divided by attributable to Indiana. A taxpayer filing on a unitary basis must
The receipts of all the taxpayer members of the compute this credit on an individual taxpayer basis. The principal
unitary group attributable to transacting business in amount of the loan must be at least $2 million to qualify for this credit.
all taxing jurisdictions.
ο Identify the members of the unitary group and determine Part I – Identification Section
which members are taxpayers under the FIT. To be In this section, identify the borrower, the principal amount of the
included in the combined return under FIT, effective Jan. loan, and the receipts less principal attributed to the loan during
1, 2002, the member must be transacting the business of the tax year. Enclose additional sheets if necessary.
a financial institution in Indiana as defined in IC 6-5.5-
1-18. If the unitary group has receipts not attributable Part II – Calculation Section
to Indiana, the group must file FIT-20 Schedule E-U to In this section, you calculate the amount of eligible credit.
apportion its receipts within and outside of Indiana. The credit is equal to the lesser of the actual taxes paid to the
• Percent of Ownership by Parent(s): To qualify as a member domiciliary state for the loan transaction or the amount due
of a unitary group, more than 50% of the voting stock of each Indiana for the loan transaction.
member of the group must be directly or indirectly owned
by a common owner or owners, or owned by one or more Line 1. Enter the total from Part I (receipts attributable to the
of the corporations of the group, regardless of where owners loan transaction).
are located and/or where such owners conduct business. The
unitary group is comprised of all the members of the group Line 2. Enter the total receipts attributable to the nonresident.
qualifying as unitary affiliates and conducting the business of
a financial institution in Indiana. Line 3. Divide the amount on line 1 by the amount on line 2. This
• Regulated Financial Institutions: A regulated financial is the apportionment percentage used to attribute receipts from
corporation, a holding company, or a subsidiary of a regulated qualified loans to the amount of tax due.
financial corporation or holding company, as defined in
IC 6-5.5-1-17, is required to file a combined return for all Line 4. Enter the amount of Indiana financial institution tax from
members of the unitary group transacting business in Indiana. a pro forma schedule. The schedule must be enclosed.
• Other Corporations: The unitary group includes any other
corporation (other than subsidiaries of an entity mentioned Line 5. Multiply the percentage on line 3 by the amount on line
above) that transacts business in Indiana and derives at least 4. This is the amount of credit available to be applied against the
80% of its gross receipts from the extension of credit, leasing taxpayer’s domiciliary state for the qualified loans.
that is the economic equivalent of the extension of credit, or
charge card operations. If a corporation does not meet the Line 6. Enter the amount of tax paid to the domiciliary state for
80% test, it is not a FIT taxpayer and cannot file as a member the qualified loans, less any credit that the domiciliary state grants
for purposes of the FIT. Instead, the corporation not meeting for taxes paid to other states.
the 80% test will file an adjusted gross income tax return
(Form IT-20). Line 7. Enter the lesser of the amount on line 5 or line 6. Enter
ο Federal Employer Identification Number: Identify each this amount on line 28 of the FIT-20.
corporate member of the unitary group by listing the
member’s federal employer identification number. Enclose a copy of your domiciliary state’s tax return with Form
FIT-20, otherwise the credit will be denied.
Page 20 FIT-20 Financial Institution Booklet 2023
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return shall be prorated between each member of the unitary
group having nexus in Indiana by the quotient of:
Instructions for Form FT-ES
Quarterly payments of estimated financial institution tax for a. The Indiana receipts of those taxpayer members
calendar-year taxpayers are due on April 20, June 20, September attributable to Indiana; divided by:
20, and December 20 of the taxable year. Fiscal-year and short b. The total receipts of all taxpayer members attributed
tax-year filers must remit by the 20th day of the fourth, sixth, to Indiana. A separate Schedule FIT-20NOL will be
ninth, and twelfth months of the tax periods. completed by each member to calculate their share of the
loss and amount available to be applied for the combined
If the annual tax liability is less than $2,500, estimated payments return.
are not required to be made. If the quarterly payment exceeds
$5,000, payments must be made electronically via INTIME, Completing FIT-20NOL
DOR’s e-service portal at intime.dor.in.gov, or by electronic funds
transfer (EFT). Tax Year. Determine the years to which the NOL applies across
the top of the schedule.
Failure to remit a payment by EFT that is required to be remitted
by EFT may result in a 10% penalty on the amount remitted by Line 1. Enter the total adjusted gross income or (loss) from line
methods other than EFT. 19 of the FIT-20. However, the following apply:
1. If you are reporting a net operating loss permitted after
Any penalty and interest paid as a result of a late payment determining excess inclusion income,
assessment cannot be claimed as a credit on the annual return. a. enter your federal net operating loss available for
carryforward plus or minus any modifications that you
Claims for refunds are processed on an annual basis only. If took into account in determining your adjusted gross
errors are discovered on a quarterly filing, these errors should be income for purposes of determining your current year
adjusted on either the next quarterly return or the annual return. net operating loss, and
Adjustments of quarterly returns must be made during the taxable b. determine any loss from previous years using the taxable
year of such quarterly returns, and a complete explanation should income after modifications.
accompany that return. 2. If Line 19 of the FIT-20 is negative and you have a dividends
paid deduction (in the case of a REIT) or a deduction for
Each return must be signed by an authorized officer. foreign derived intangible income, add that amount into Line
1. If the addition of these amounts would result in a positive
number, you do not have an Indiana net operating loss.
3. If you are a registered investment company, STOP: you do
Instructions for Schedule FIT-20NOL – not have a net operating loss.
Computation of Indiana Member’s Net 4. If you have a discharge of debt excluded from income as a
result of a Title 11 bankruptcy, insolvency, or as a result of the
Operating Loss Deduction
debt being qualified farm indebtedness enter the sum of the
All taxpayers must complete and enclose this schedule with debt discharged and excluded from gross income minus any
the Financial Institution Tax Return if they are claiming a net such debt applied against capital losses, basis of property, or
operating loss (NOL) deduction. The NOL that will be recognized passive tax attributes (the “net excluded discharge”).
for financial institution tax purposes will be the NOL apportioned a. If the sum of the dividends paid deduction (0 if Line 19
to Indiana for the taxable year of the loss. is positive), foreign derived intangible income deduction
(0 if Line 19 is positive), plus the net excluded discharge
An Indiana NOL incurred under the Financial Institution Tax is a positive number, you will need to do two sets of
Act may be carried forward for 15 years following the loss year calculations. For determining the net operating loss for the
and applied in any year in which there is Indiana taxable income. current year and the net operating losses for carryforward,
There is no provision under the Financial Institution Tax Act for you will need to use the amount including the net excluded
the carryback of a net operating loss or capital loss. An Indiana discharge. For purposes of determining the amount
NOL incurred for adjusted gross income (AGI) tax purposes included in adjusted gross income, you will use the adjusted
may not be applied to income subject to financial institutions gross income before applying the net excluded discharge.
tax. An Indiana NOL must be used the first year available for the b. If the sum of line 19, dividends paid deduction, foreign
deduction. derived intangible income, and the net excluded
discharges is a negative number, enter that sum here.
Use the net operating loss computed under this schedule for a This becomes your net operating loss.
member who was not part of the combined group or when a
member is no longer part of a combined group. To compute the Line 2. Enter the combined apportionment percentage, if
allowable net operating loss deduction, do the following: applicable, for the tax year.
1. If the taxpayer is filing a combined return, any net capital loss Line 3. Enter the combined amount of Indiana business income
or net operating loss attributable to Indiana in the combined or loss. Multiply the amount on line 1 by the apportionment
percentage on line 2.
FIT-20 Financial Institution Booklet 2023 Page 21
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Sample FIT-20NOL for Unitary Group
A form is to be completed by each member of a combined return filing FIT-20NOL.
Members A, B, and C are taxpayers under IC 6-5.5-1-17 and are required to be included in the combined return (IC 6-5.5-1-18) for the
2016 tax year.
Loss Year 2022 Member A Member B Member C Combined Total
AGI or (Loss) ($300,000) $300,000 ($400,000) Line 1. ($400,000)
IN Apportionment Line 2. 50%
Combined IN AGI (Loss) Line 3. ($200,000)
IN Receipts for A, B, & C $2,000,000 + $7,000,000 + $1,000,000 Total IN Receipts $10,000,000
Line 4. Ratio of IN Receipts 20% 70% 10% [IN Receipts of A, B, & C divided by total receipts]
Line 5. Available share of NOL
[Line 3 X line 4 of A, B, & C] ($40,000) ($140,000) ($20,000) Line 5. ($200,000)
Carryover Year 2023 (For tax year 2023, member C is no longer required to be included in the combined return (IC 6-5.5-1-18(a).)
AGI or (Loss) $500,000 ($100,000) N/A Line 1. $400,000
IN Apportionment Line 2. 20%
Combined IN AGI (Loss) Line 3. $80,000
IN Receipts for A & B $6,000,000 + $4,000,000 = Total IN Receipts $10,000,000
Line 4. Ratio of IN Receipts 60% 40% [Receipts of A & B divided by total IN receipts]
Line 5. IN AGI
[Line 3 X line 4 of A & B] $48,000 $32,000
Applied share of 2016 NOL ($40,000) ($32,000) [$160,000 available] FIT-20NOL, line 25. ($72,000)
Taxable income $8,000 $0 FIT-20NOL, line 26. $8,000
NOL to carry forward $0 ($108,000) ($20,000)
Sample FIT-20NOL for Combined Unitary Group
Tax Year 2017 2018 2019 2020 2021 2022 2023
1. Total AGI or (Loss) (400,000) 400,000 400,000 400,000 200,000 200,000 300,000
2. Combined Apportionment % 50% 20% 25% 40% 70% 50% 80%
3. Combined IN AGI or (Loss) (200,000) 80,000 100,000 160,000 140,000 150,000 240,000
4. Member’s Share of IN Receipts % (Used for worksheet purposes only - see unitary 2016 & 2017 examples above.)
5. Member’s Share of IN AGI or (Loss) (140,000) 32,000 50,000 100,000 140,000 150,000 240,000
Loss Year Indiana NOL
2009-2016
2017 140,000 32,000 50,000 58,000
2018
2019
2020
2021
2022
2023
Adjusted Gross Income 0 0 42,000 140,000 150,000 240,000
After NOL Deduction
Page 22 FIT-20 Financial Institution Booklet 2023
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If you have an Indiana net operating loss to which you are entitled
from the termination of an estate or trust during the taxable year,
Additional Information
• If Line 3 is a gain, apply the net operating loss in the manner
that a net operating loss carryforward would be applied and
treat any unused loss as arising in the current taxable year, Special Reminders
and • Financial institutions filing on a fiscal-year basis must enter
• If line 3 is a loss, include the loss in the total for line 3. the tax year beginning and ending dates.
Line 4. Enter the ratio of member’s Indiana receipts. Divide • Net operating loss deductions must be supported by the
member’s Indiana receipts by receipts of entire unitary group completed Schedule FIT-20NOL enclosed with the return.
attributed to Indiana for year. Enter as a percent. See Indiana
Code (IC) 6-5.5-2-1(d)(1) and sample on page 22. • The Schedule FIT-2220, Underpayment of Estimated Tax
by Financial Institutions, must be completed to reflect the
Line 5. Enter each taxpayer member’s attributed Indiana income applicable penalty or exception.
or loss available to offset combined income or to reduce the
carryforward loss. • Questions L through W on the front of the return must be
answered.
Caution. The income or loss available is limited to the amount
of each taxpayer member’s portion of the receipts attributable • A copy of the first five pages of the corporation’s federal
to Indiana. See sample on page 22. Use amount from line 3 or tax return must be enclosed with Form FIT-20, along with
multiply line 3 by ratio on line 4, if applicable. Schedule M-3 and a copy of any extension to file form.
The total of each taxpayer member’s remaining share of the • An extension request and prepayment of 90% of the tax
combined group’s NOL deduction is applied on line 25 of Form due can be submitted via INTIME, DOR’s e-services portal
FIT-20. However, the combined total may not exceed the taxable at intime.dor.in.gov. Failure to do so will result in a 10%
income for the year. penalty on the amount paid after the original due date of
the return. Interest will be due on any payment made after
Loss Year Carryforwards Applied Against AGI the original due date.
In the second column next to the appropriate loss year, enter the
total Indiana NOL coinciding with line 3 for the corresponding • If applicable, check the box indicating you are either a state-
loss year. When utilizing the NOL deduction for a particular loss chartered credit union or an investment company.
year, enter the amount of the deduction in the same column of the
year the loss is being applied against AGI. • If the name change box is checked, enclose with the
return copies of amended Articles of Incorporation or an
When calculating the AGI after the NOL deduction, subtract the Amended Certificate of Authority filed with the Indiana
total deductions taken from the AGI and enter the amount on Secretary of State.
the line titled “Adjusted Gross Income after NOL Deduction.” The
amount cannot be less than 0. If you have any questions, see General Tax Information Bulletin
#200 at www.in.gov/dor/files/reference/gb200.pdf.
Enclose the complete schedule and any NOL worksheets with the
return when the NOL is being utilized.
FIT-20 Financial Institution Booklet 2023 Page 23
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