HOUSE BILL No. 1042
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3-2-4.
Synopsis: Military income tax deduction. Phases in an increase of the
military income tax deduction from $5,000 to $7,000. Removes the
minimum age requirement for an individual to deduct a military
Effective: January 1, 2010 (retroactive).
January 5, 2010, read first time and referred to Committee on Ways and Means.
Second Regular Session 116th General Assembly (2010)
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HOUSE BILL No. 1042
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3-2-4; (10)IN1042.1.1. -->
SECTION 1. IC 6-3-2-4, AS AMENDED BY P.L.144-2007,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2010 (RETROACTIVE)]: Sec. 4. (a)
Each taxable year,
An individual, or the individual's surviving spouse, is entitled to an
adjusted gross income tax deduction for the first five thousand dollars
($5,000) of income, including retirement or survivor's benefits,
received during the taxable year by the individual, or the individual's
surviving spouse, for the individual's service in an active or reserve
component of the armed forces of the United States, including the
army, navy, air force, coast guard, marine corps, merchant marine,
Indiana army national guard, or Indiana air national guard. However,
a person who is less than sixty (60) years of age on the last day of the
person's taxable year, is not, for that taxable year, entitled to a
deduction under this section for retirement or survivor's benefits. The
amount of the deduction is as follows:
(1) For the taxable year beginning in 2010, the first five
thousand dollars ($5,000) of income.
(2) For the taxable year beginning in 2011, the first six
thousand dollars ($6,000) of income.
(3) For taxable years beginning in 2012 and thereafter, the
first seven thousand dollars ($7,000) of income.
(b) An individual whose qualified military income is subtracted
from the individual's federal adjusted gross income under
IC 6-3-1-3.5(a)(23) for Indiana individual income tax purposes is not,
for that taxable year, entitled to a deduction under this section for the
individual's qualified military income.
SOURCE: ; (10)IN1042.1.2. -->
SECTION 2. [EFFECTIVE JANUARY 1, 2010 (RETROACTIVE)]
IC 6-3-2-4, as amended by this act, applies to taxable years
beginning after December 31, 2009.
SOURCE: ; (10)IN1042.1.3. -->
SECTION 3. An emergency is declared for this act.