Thursday, April 25, 2024

How To Pay My Indiana State Taxes

Don't Miss

If You Cannot Make Monthly Payments

How Much Tax Will You Pay in Indiana On $60,000

If the taxpayer cannot make minimum monthly payments with a tax payment plan, he or she may want to look at Indianas Hardship Program, an Offer in Compromise, or some other type of resolution. With a large tax balance, working with a licensed tax professional can ensure optimal results.

If a taxpayer starts a tax payment plan and misses a payment, Indianas DOR will most likely cancel the payment plan and refer the case to an outside collection agency. If you miss a payment or foresee yourself having trouble making a monthly payment, call the DOR immediately.

Comparing Federal Tax Payment Options

The first thing to understand about paying taxes with a credit card is that this transaction will not be free. Third party payment processors charge fees to process transactions and submit payments to the Internal Revenue Service and they charge additional fees for the convenience.

When it comes to federal taxes, the IRS makes things easy by providing information about paying a tax bill on its own website. The IRS also authorizes three companies to process credit card payments for federal taxes.

The graphic below shows the three companies authorized to accept payment for a federal tax bill along with the respective fees they charge.

There are a few additional details to note about paying your federal taxes with a credit card, per the IRS:

  • Tax payments over $100,000 may come with special requirements and these payments must be processed over the phone instead of online.
  • Different types of tax payments come with a maximum number of times you can pay with a credit card each year.
  • Employers federal tax deposits cannot be paid with a credit card.

If There Were An Indy 500 For State Income Tax Deductions Indiana Might Have A Good Chance Of Racing Past Other States

Consider yourself lucky if you live in the Hoosier State. Its not only the site of the annual race that draws hundreds of thousands to the Indianapolis Motor Speedway, but its also home to a bounty of tax deductions and refunds that could lower your state income tax bill. On top of that, the state has a flat tax rate of 3.23%.

Here are some things to know about your Indiana state taxes.

Indianapolis, IN 46207-7207

You May Like: Where Is My Federal Tax Refund Ga

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

At Bankrate we strive to help you make smarter financial decisions. While we adhere to stricteditorial integrity, this post may contain references to products from our partners. Heres an explanation forhow we make money.

Do You Need To File An Indiana Sales Tax Return

DOR: Individual Income Taxes

Once you have an active sales tax permit in Indiana you will need to begin filing sales tax returns. Not sure if you need a permit in Indiana? No problem. Check out our blog,Do You Need to Get a Sales Tax Permit in Indiana?

Also, If you would rather ask someone else to handle your Indiana filings, our team at TaxValet can handle that for you with ourDone-for-You Sales Tax Service. We specialize in eliminating the stress and hassle of sales tax.

You May Like: How To Get Tax Preparer License

Meet An Important Spending Threshold

There are also some scenarios where it makes sense to pay taxes with a credit card in order to reach an important spending threshold, and these instances arent limited to earning credit card welcome bonuses. It may be worthwhile to spend a certain amount of money to reach the next level of elite status with a hotel credit card or an airline credit card, for example.

Take the Citi® / AAdvantage® Executive World Elite Mastercard®*, for example. This card offers consumers a welcome bonus: Earn 50,000 American Airlines AAdvantage® bonus miles and 10,000 Elite Qualifying Miles after $5,000 in purchases within the first 3 months of account opening. Plus, Admiral’s Club® membership . Cardholders also earn 2 miles per dollar spent on American Airlines purchases and 1 mile per dollar on all other purchases.

This card does charge an annual fee of $450, but comes with Admirals Club lounge membership worth $650 for non-elite members as a cardholder perk. Other cardholder benefits include a free checked bag, a fee credit for Global Entry or TSA PreCheck membership, priority boarding and priority airport check-in. Interestingly enough, this card also grants 10,000 Elite Qualification Miles after spending $40,000 on your card within a calendar year.

How Income Taxes Are Calculated

  • First, we calculate your adjusted gross income by taking your total household income and reducing it by certain items such as contributions to your 401.
  • Next, from AGI we subtract exemptions and deductions to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as ones spouse or children.
  • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
  • Your location will determine whether you owe local and / or state taxes.
  • Last Updated: January 1, 2021

    When Do We Update? – We regularly check for any updates to the latest tax rates and regulations.

    Customer Service – If you would like to leave any feedback, feel free to email

    …read more

  • Our Tax Expert

    Jennifer Mansfield, CPATax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAssets tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

    …read more

  • Recommended Reading: Mcl 206.707

    Owe Income Tax Paying Through Dorpay Is The Best Way

    If youre one of the millions of Indiana taxpayers filing online this season, the Indiana Department of Revenue wants to make sure you know the best way to pay any Indiana income tax taxes that you may owe.

    One thing that trips up some taxpayers is the fact that fees charged by tax preparers are separate from taxes owed. Unfortunately, the wording used in some tax programs may confuse customers into believing that theyre paying their taxes to DOR when in fact, theyre only paying a filing fee.

    If your tax software is no-fee, like those through the INfreefile program, or you pay the filing fee prior to preparing your tax return, the tax software should instruct you on how to make payments directly to DOR. Some companies may offer to combine their filing fee and your tax payment. Just remember that online tax filing services are not authorized DOR payment portals. To be safe, we recommend making Indiana individual income tax payments directly to DOR.

    So where can you pay your Indiana income tax? If you want to pay online, use DORs authorized e-payment portal, DORpay, which is available 24 hours a day, 7 days a week. Payments can be made by Visa, MasterCard, or ACH . If paying by credit card, a fee will be charged, but there is no fee for an ACH payment.

    Have questions? Contact our Customer Service team Monday through Friday, 8 a.m. 4:30 p.m., EST at 317-232-2240.

    Overview Of Indiana Taxes

    How Do I Pay My Income Tax Online

    Indiana has a flat statewide income tax. In 2017, this rate fell to 3.23% and has remained there through the 2020 tax year. However, many counties charge an additional income tax. The statewide sales tax is 7% and the average effective property tax rate is 0.81%.

    Household Income
    Number of State Personal ExemptionsDismiss

    * These are the taxes owed for the 2020 – 2021 filing season.

    Recommended Reading: How To File Missouri State Taxes For Free

    How Do You Pay A Traffic Ticket In Indiana

    Depending on where you received your IN traffic ticket, you may be able to pay it online, by phone, by mail, or in person . Your traffic ticket as well as the appropriate county court provides specific payment instructions, but weve outlined payment information as well as other considerations below. Pay the fine.

    What Transactions Qualify For Johnson County Food & Beverage Tax

    The Johnson County food & beverage tax applies to any transaction in which food or beverage is furnished, prepared, or served by a retail merchant for consumption at a location or on equipment provided by the retail merchant in Johnson County. The tax is collected by a retail merchant from the patron . The retail merchant then forwards the tax it has collected to the Johnson County Treasurer on a monthly basis. For additional information of qualifying transactions click here.

    Don’t Miss: How Can I Make Payments For My Taxes

    How Do I Pay Johnson County Food & Beverage Tax

    Johnson County food & beverage tax returns and remittances are required to be filed with and paid to the Johnson County Treasurer.

    Payment may be mailed to the Johnson County Treasurers Office at 86 W. Court Street, Franklin, IN 46131. You may also make your payment in person at the same address. All payments MUST include a Johnson County food & beverage tax return form.

    Additional Information May Be Found Here

    Indiana State Tax Refund

    In order to move or transfer the title to a mobile home located in Johnson County, a mobile home permit is required to be issued by the Johnson County Treasurers Office.

    Prior to issuing a mobile home permit, all taxes, penalties, judgements, and special assessments must be paid. This includes all delinquent tax and may include estimated taxes for the current year.

    All taxes, penalties, etc. must be paid at the Treasurers Office with certified funds, i.e. money order, cashiers check, or cash. The original title for the mobile home must be presented to the Treasurers Office when requesting a mobile home permit. A receipt is required for any judgements that have been paid directly to A.F.C.S.

    Don’t Miss: How Much Does H& r Block Charge To Do Taxes

    How To Get Help Filing An Indiana Sales Tax Return

    If you are stuck or have questions, you can contact the state of Indiana directly at 233-4015 between 8:00 a.m. and 4:30 p.m. EST. You can also find additional resources at the Indiana Department of Revenue website.

    Instead, if you are looking for a team of experts to handle your sales tax returns for you each month, you should check out our Done-for-You Sales Tax Service. Feel free to contact us if youre interested in becoming a client!

    How Do I Know If I Owe Indiana Department Of Revenue

    You can find information on how to pay your bill, including payment plan options, FAQs and more below. If you have specific questions about a bill, call our payment services team at 232-2240, Monday through Friday, 8 a.m. 4:30 p.m., EST. Set up a payment plan, if you owe more than $100, using INtax Pay.

    Also Check: Tax Lien Investing California

    The Us Federal And Indiana State Tax Return Filing And Payment Deadline Is May 17 2021

    Forms and information are available through the U.S. Federal Internal Revenue Service and the Indiana Department of Revenue . If you worked in a state other than Indiana in 2020, you may need to file income tax returns in that state as well.

  • Cares Act

    The Cares Act was introduced by the U.S. government in April 2020. It provided individual taxpayers an initial stimulus payment of $1200 and then more recently an additional $600 to off-set the financial hardship caused by COVID-19.

    To receive this payment a person needed to:

  • Have a valid SSN.
  • There Are Three Stages Of Collection Of Back Indiana Taxes

    How to File State Taxes Online Free

    1) First, The Indiana Department of Revenue itself attempts to collect your Indiana back tax debt by sending you demands via US Mail. You can set up a payment plan with the Indiana Department of Revenue by calling 317-232-2165 or visiting www.intaxpay.in.gov. Depending on the amount of tax you owe, you might have up to 36 months to pay off your tax debt. If not paid at this point, your Indiana tax debt becomes an Indiana tax lien. If not paid, tax debt at this stage attaches to real estate owned in your county, complicates Indiana professional licensing, and complicates the sale of motor vehicles if not paid. If The Indiana Department of Revenue doesnt collect the tax debt, then the debt moves to your Indiana Countys Sheriff Department.

    3) Lastly, Premiere Credit of North America LLC attempts to collect Indiana back tax debt by sending you demands via US Mail and calling your telephone. Premiere routinely issues bank levies and wage garnishments. If Premiere levies your bank account, you will be forced to pay an amount equal to the amount they have frozen in your bank account to be able to unfreeze your account. You have limited payment options with Premiere. Sometimes nothing less than immediate full payment will stop collection actions by Premiere, while other times you might have to pay a substantial down payments followed by a short period of months repayment.

    You May Like: How Much Does H& r Block Charge To Do Taxes

    Due Dates For Indiana Business Returns

    Corporations – April 15, or same as IRS. Indiana Corporate returns are filed on Form IT-20 and cannot be electronically filed.

    S Corporations – March 15, or same as IRS. S Corporation returns are filed on Form IT-20S and the current year and the two prior years can be e-filed. Indiana will accept linked with the federal return or sent as a state only.

    Partnerships – March 15, or same as IRS. Partnership returns are filed on Form IT-65 and the current year and the two prior years can be e-filed. Indiana will accept returns linked with the federal return or sent as a state only.

    Fiduciary & Estate – April 15, or same as IRS. Indiana Fiduciary returns are filed on Form IT-41 and cannot be electronically filed.

    How Do I Pay Johnson County Innkeepers Tax

    Johnson County innkeepers tax returns and remittances are required to be filed with and paid to the Johnson County Treasurer.

    Payment may be mailed to the Johnson County Treasurers Office at 86 W. Court Street, Franklin, IN 46131. You may also make your payment in person at the same address. All payments MUST include an innkeepers tax return form.

    Also Check: Can Home Improvement Be Tax Deductible

    Why Pay Taxes With A Credit Card

    Before deciding whether or not to pay taxes with a credit card, think about reasons that it makes sense to do so. Having a reason or incentive to pay taxes with a credit card is a mustwithout one, the extra fee only adds to the tax bill. If this is the case, write a check instead.

    Here are the most common reasons to pay taxes with a credit card, despite the added cost:

    What If I Cant Fully Pay My Back Indiana Taxes Or Even Afford The Payment Plans Offered By The Indiana Department Of Revenue My Indiana Countys Sheriff Department Or Premiere Credit Of North America Llc

    W4 Indiana

    You still have options.

    1. Get Outside Help Consult with a tax attorney, experienced in dealing with back Indiana taxes. If you are in an emergency situation where you are unable to fully pay your tax debt, you are likely juggling IRS tax debt, Indiana tax debt, and other expenses. Its best to determine a strategy that takes into account your entire financial picture. Hiring a tax attorney to create and implement this strategy can save you enormous amounts of heartache, time, and money.

    2. Go To The Source The Indiana Department of Revenues Taxpayer Advocate Office helps the people who owe Indiana taxes, but arent able to pay taxes in full or according to the payment options given by The Indiana Department of Revenue, the Indiana County Sheriff, or Premiere Credit of North America LLC. This office is understaffed, its paperwork requirements are steep, but its assistance to Indiana taxpayers is invaluable. While its help might not be immediate , if you provide it the paperwork it requests, the Taxpayer Advocate Office will be able to assist you.

    Recommended Reading: How To Buy Tax Liens In California

    What If Indiana Department Of Revenue Says That I Owe It Money But I Dont Think I Owe It Or I Think I Owe A Lot Less That The Bill I Was Sent

    When you dont file a tax return , Indiana Department of Revenue can file a tax return on your behalf. These estimated or best information available returns typically create balances that are vastly overstated. If you were to file an actual tax return to replace the Indiana Department of Revenues estimated return, your balance would be greatly reduced or even eliminated.

    How Do I Know If I Have A Tax Warrant In Indiana

    We now have tax warrant data for the entire state of Indiana and this information can be searched from the Welcome Page or by clicking on the tax warrants tab. Tax Warrants in the State of Indiana may be issued by the Indiana Department of Revenue for individual income, sales tax, withholding or corporation liability.

    You May Like: How To Buy Tax Lien Properties In California

    More articles

    Popular Articles