Resident Incentives & Forms
Below is the form required for Enterprise Zone Residents to take advantage of the Employee Wage Deduction. The employer must verify that you live and work in the East Chicago Zone and complete the form. Your employer should provide the completed IT40-QEC form to you along with your W-2 annually.
EMPLOYEE WAGE DEDUCTION (IC 6-3-2-8) Schedule IT40-QEC - File with Indiana tax return
An income tax deduction is available for qualified employees of an enterprise zone business. The qualified employee is an individual who is employed by an Enterprise Zone business taxpayer or a pass-through entity and whose principal place of residence is in the Enterprise Zone where the employee is employed. The employee must perform services for the employer, at least 90% percent of which are directly related to the conduct of the taxpayer’s business that is located in the enterprise zone. The employee must perform at least 50% of his service for the taxpayer during the taxable year in the enterprise zone.
Employers must complete and provide eligible employees a Schedule IT-40 QEC by January 31st annually. The IT-40 QEC must be filed with the employee’s State individual income tax return.
Resident Filing Calendar
- January 31
Enterprise Zone Qualified Employee Deduction Certificate (IT-40QEC), to be distributed to eligible employees for filing with individual employee state income tax returns.
- April 15
Individual state income tax return deadline, to which IT-40QEC (Enterprise Zone Qualified Employee Deduction Certificate) should be attached to support any claimed deduction of earned enterprise zone income. The qualified employee should claim this deduction on IT-40 Schedule 2, IT-40PNR Schedule C, or Form IT-40X (amended tax return).