House Bill 1256 Summary

• Provides a complete income tax exemption for individuals age 65+ (or their spouse on joint returns) with household federal adjusted gross income not exceeding $50,000, effective January 1, 2013.

• Taxpayers claiming the senior exemption are ineligible for all other income tax deductions, exemptions, and credits for that taxable year.

• Reduces the standard income tax exemption for seniors age 65+ who do not claim the full exemption from $1,000 to $500, and eliminates the existing $500 exemption for elderly taxpayers with adjusted gross income below $40,000.

• Establishes a $1,000 state income tax exemption for taxpayers who are totally deaf in both ears, requiring proof of deafness filed with the tax department.

• Makes technical corrections and clarifications to Indiana Code provisions regarding adjusted gross income calculations.