Indiana Royalty Payments

State:
Multi-State
Control #:
US-OG-821
Format:
Word; 
Rich Text
Instant download

Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.

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FAQ

You may qualify to take a credit for taxes paid to another state while a resident of Indiana. If the income was taxed in both Indiana and the other state, you are a resident of Indiana and you filed a tax return in the other state, you can take the credit.

In most cases, you'll report your royalties in Part I of Schedule E on your Form 1040 or Form 1040-SR, identified as Supplemental Income and Loss.

You must have been a resident of Indiana for at least 6 months out of the current tax year. You were not in prison for more than 180 days in the current tax year. You must claim the tax credit by June 30 of the tax year.

Are royalties earned or unearned income? Royalties are considered earned income.

To qualify, for the $200 Automatic Taxpayer Refund, the taxpayer must have received Social Security benefits in calendar year 2022 and must not be claimed as a dependent on a 2022 Indiana income tax return. These taxpayers must file a 2022 Indiana resident tax return to claim the $200 Automatic Taxpayer Refund.

The taxpayer may take a credit for taxes paid to other states against the taxpayer's Indiana adjusted gross income tax liability. This credit is only available for taxes for which the taxpayer is personally liable. Taxes imposed directly at the entity level generally are not eligible for this credit.

If you filed an Indiana resident tax return for the 2020 tax year by Dec. 31, 2021, you were eligible for and should have received both refunds ($125 and $200 ATRs) in 2022 as a direct deposit or a check (either separately or combined) for a total of $325 (or $650 for those filing jointly).

Form WH-47, Certificate of Residence, should be completed by residents of these states working for Indiana employers. This certificate is an affidavit showing the employee's state of legal residence and provides proof that no withholding of Indiana state income tax is required.

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Indiana Royalty Payments