Indiana Code Title 12. Human Services § 12-15-7-5

Sec. 5. (a) In addition to the amount that may be retained as a personal allowance under this chapter, an individual is allowed to retain an amount equal to the individual's state and local income tax liability.

(b) The amount that may be retained during a month may not exceed one-third ( 1/3 ) of the individual's state and local income tax liability for the calendar quarter in which the month occurs.  This amount is exempt from income eligibility consideration by the office.

(c) The amount retained under this section must be used by the individual to pay any state or local income taxes owed.