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04  Schedule IN-2058SP                    Nonresident Military Spouse                                                  Enclosure 
    State Form 54259
05  (R14 / 9-23)                          Earned Income Deduction                               2023                  Sequence No. 23
06                                        Enclose this schedule with the filing of Form IT-40PNR
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09                                                                                              Servicemember’s Spouse’s
10 Military servicemember’s spouse’s name                                                       Social Security Number
11
12 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX                                              999               99   9999
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14                                                                                              Servicemember’s
15 Military servicemember’s name                                                                Social Security Number
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17 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX                                              999               99   9999
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20                                        Part 1: Figure your deduction
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22                                                                                                                Round all entries
23 Military spouse’s earned income from Indiana sources
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25  1. Servicemember’s spouse’s wages as reported on Line 1B or 2B of Indiana’s Schedule A _______             1  99999999999.00
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27  2. Business income from line 7B of Indiana’s Schedule A   ________     2a  99999999999.00
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29  Servicemember’s spouse’s portion   of line 2a  _________________________________________                   2b 99999999999.00
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31  3. Add lines 1 and 2b. This is the servicemember’s spouse’s earned income from Indiana 
32  sources. Enter on Indiana’s Schedule C under line 11. Identify by using 3-digit code 625  _______          3  99999999999.00
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                                          Part 2: Additional information
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39  1. Enter 2-letter code for your state of domicile (e.g., IN for Indiana) XX
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41  2. Are you including the income from line 3 on your state of domicile’s tax return? Yes X   No X              N/A X
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43  If you answered No or N/A, explain   __________________________________________________________________________
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45   _______________________________________________________________________________________________________
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48 Note: Pursuant to IC 6-8.1-7-1(b), information provided on this form may, upon request, be disclosed to the tax department in your state 
49 of domicile. Any information disclosed will remain confidential and used solely for tax collection purposes.
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51 You must enclose a copy of the servicemember’s military W-2 when claiming this deduction.
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           Instructions for the Nonresident Military Spouse Earned Income Deduction

Based on provisions within the Military Spouse Residency Relief    Line 3 – Add lines 1 and 2 and enter the total here. This is your 
Act of 2009 (Public Law No. 111-97), a spouse of a nonresident     deduction. Enter this amount on Indiana Schedule C: Deductions, 
military servicemember may not owe tax to Indiana on earned        under line 11. Identify this deduction by using the 3-digit code 
income from Indiana sources.                                       number 625.

The spouse may claim Indiana-source earned income* as a            Important: If any of the conditions above change, you will no 
deduction if the spouse has elected the same state of residence    longer be eligible for the deduction of Indiana-source earned 
as the military servicemember under federal law or:                income. Only the income earned up to the time the condition 
• Indiana is not the military servicemember’s state of domicile    changed will be exempt. 
  as reported on the servicemember’s Form DD-2058; 
• The military servicemember and spouse are domiciliaries of       Example. Mary was assigned to a post overseas, and left Indiana 
  the same state;                                                  on October 1; Tom remained in Indiana. $24,000 of Tom’s $32,000 
• The military servicemember is in Indiana on military orders;     total wage income was earned before October 1. His deduction is 
• Either:                                                          limited to $24,000.
    ο  The military servicemember’s spouse is in Indiana in 
       order to live with the servicemember, and resides at the    Part 2: Additional Information
       same address; or                                            Line 1 – Enter the 2-letter code of the spouse’s state of domicile in 
    ο  The military servicemember and spouse live together         the box. 
       in a state other than Indiana, but the servicemember’s 
       spouse works in Indiana; and                                Example. Tom should enter KS for Kansas.
• The Indiana-source income is included on Indiana Schedule 
  A on line 1B, 2B and/or 7B.                                      Line 2 – Tell us if you are including the Indiana-source earned 
                                                                   income on your state of domicile’s tax return.
*Earned income for purposes of this deduction includes: 
• Wages, salaries, tips and other compensation from Indiana        Example. Tom and Mary are domiciliaries of Kansas. They filed a 
  sources, and/or                                                  tax return with Kansas, and included the Indiana-source income 
• Income from a sole proprietorship (reported on federal           on the tax return. Tom should check the Yes box.
  Schedule C or C-EZ) from Indiana sources.
                                                                   Note: If you answered No or N/A to the question on line 2, include 
Important: You must enclose a copy of the military servicemem-     an explanation.
ber’s W-2 when claiming this deduction.
                                                                   Final thoughts
Part 1: Figure your deduction                                      Remember, you must enclose a copy of the military servicemem-
Line 1 – Enter the amount of the military servicemember’s          ber’s W-2 when claiming this deduction. Otherwise, the deduction 
spouse’s Indiana-source earned wages, salaries, tips and other     will be denied.
compensation reported on Schedule A, line 1B or line 2B. DO 
NOT include any servicemember’s income reported on these           Get Income Tax Information Bulletin #27 at www.in.gov/dor/files/
lines.                                                             reference/ib27.pdf for additional information.

Example. Mary is a military servicemember. She is stationed 
in Indiana, and her husband Tom resides with her in Indiana. 
Her state of domicile on Form DD-2058 is Kansas. Tom’s state 
of domicile is also Kansas. Tom meets the requirements to be 
eligible to claim this deduction. He earned $32,000 wage income 
while working in Indiana during the year, and included that income 
on Schedule A, Line 1B. He should enter $32,000 on line 1.

Line 2 – Enter the amount of the military servicemember’s 
spouse’s Indiana-source sole proprietorship income reported on 
Schedule A, line 7B. DO NOT include any servicemember’s sole 
proprietorship income included on line 7B.

Example. The same set of circumstances as the example above, 
except Tom has $27,000 sole proprietorship income from Indiana 
sources, and no wage income. He reported the $27,000 income 
on Schedule A, line 7B. Mary did not have any sole proprietor 
income. Tom should enter $27,000 on lines 2a and 2b.

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