![]() ![]() INfreefile was developed in 2003 by the Internal Revenue Service (IRS) and tax preparation software vendors. ![]() See DOR’s “Unemployment Benefits and Taxes” page for more information and instructions. They may, however, still be able to deduct some portion of their unemployment income on their state tax return in accordance with Indiana’s current tax laws. As a result, Indiana taxpayers cannot use the federal unemployment compensation exclusion on their 2020 Indiana individual income tax returns and that income must be added back in. On April 22, the Indiana General Assembly did not adopt certain provisions of the current Internal Revenue Code and Governor Eric Holcomb signed this into law on April 29.
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