Indiana DOR Sustains Taxpayers’ Protest Regarding Foreign Tax Credit

The Indiana Department of Revenue (DOR) issued a ruling regarding taxpayers’ proposed income tax assessment. Taxpayers are a married couple who live and work in different countries but jointly filed their 2023 Indiana Full-Year Resident Individual Income Tax Return (“IT-40”). The Department adjusted the return and issued a Notice of Proposed Assessment. Taxpayers protested the proposed assessment. After review, the DOR agreed that the Department’s adjustments were incorrect and sustained the taxpayers’ protest after they provided documentation substantiating the foreign tax credit claimed on their Indiana return. [Ind. Dep’t of Revenue, Letter of Findings 01-20242864, 07/30/25]

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