Indiana State Veteran Benefits

Property tax deductions are available to disabled Hoosier Veterans under the following conditions:

1. A $12,480 dollar deduction is available to a veteran who:
   1. Served at least 90 days of honorable service.
      
      And:
   2. Are totally disabled (not necessarily service-connected but the disability must be evidenced by a U.S. Department of Veterans Affairs pension certificate).
      
      Or:
   3. Are at least 62 years old and 10% service-connected disabled.Note: This deduction is NOT available if the assessed value of the real property owned by the veteran is in excess of $143, 160.
2. A $24,960 tax deduction is available for veterans who:
   1. Served honorably in the Armed Forces during any period of wartime.
      
      And:
   2. Are at least 10% service-connected disabled.
3. A $37,440 tax deduction is available for any veteran who: (This is a combination of tax code 1 and tax code 2 and in the event the property is valued above $143,160 the tax code 1 portion is NOT applicable and, therefore, Tax Code 3 cannot be awarded.)
   1. Served honorably during any period of wartime.
      
      And:
   2. Is 100% service connected-disabled
      
      Or:
   3. Is at least 62 years of age with at least a 10% service-connected disability.

Notes:

1. A statutory disability rating for Pulmonary TB is not eligible.
2. Active duty for training with the National Guard or Reserves is eligible only if the disability occurs from an event during the period of active duty and that duty was performed during wartime.
3. The surviving spouse of the veteran is eligible for the veteran?s tax deduction. The spouse must apply in his or her own name. Ref: IC 6-1.1-12-14, IC 61.1-12-15.

Income Tax Exemption

Current members of the active branches of service, National Guard and Reserves are eligible to receive an exemption of $5,000 on their state income tax return. Veterans who are military retirees over age 60 are eligible for the same exemption.

Author:
in.gov