The department explained in a tax bulletin issued this week that the state has not adopted numerous tax code changes made by the Coronavirus Aid, Relief and Economic Security Act
or other federal legislation related to the pandemic.Changes not followed by Indiana include various adjustments to the treatment of employer student loan payments, excess deductions following the termination of a trust, retirement distribution rules, property depreciation, excess interest deductions and net operating loss changes, the department said.
The department said it would follow federal tax provisions related to the Paycheck Protection Program loans, qualified emergency financial aid grants, U.S. Department of the Treasury program management authority loans and other grants.
The department also noted that it would not disqualify a retirement or health savings plan or account — including any deductions — if a plan or account took on an otherwise-allowable action for federal tax purposes.
--Editing by Neil Cohen.
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