Indiana Governor Eric Holcomb announced Wednesday that Hoosiers should expect to begin receiving their $125 Automatic Taxpayer Refund in the coming weeks. “I’m beyond thrilled that this spring and summer we are returning money back into the hands of Hoosier taxpayers, where it belongs,” Gov. Holcomb said. “Our conservative fiscal leadership and pro-growth policies makes this tax refund possible for all Hoosier households.”
The Governor first announced in December that an estimated 4.3 million taxpayers will receive a $125 refund after they file their 2021 taxes. An estimated $545 million will be returned to Hoosiers. After the tax-filing deadline passes on April 18, the Department of Revenue in conjunction with the Auditor of State’s Office will begin issuing the refunds via direct deposit or by mailing a paper check.
Refunds will begin in May through direct deposit for residents who have filed their income taxes and provided their banking information on their return. Direct deposits are expected to continue through July.
Paper checks will be issued beginning in late July and continue through August, with the goal of completing the refund statewide by Sept. 1.
Residents do not need to take any action to receive the refund, state officials said. The refund is in addition to and separate from any refund Hoosiers may receive after filing their 2021 state income tax returns.
Hoosiers can visit the Department of Revenue website for information about when to expect to receive the direct deposit or paper check.
Indiana Auditor of State Tera Klutz Wednesday announced her plan to coordinate the disbursement of the $125 automatic taxpayer refund over the coming weeks. An estimated 4.3 million taxpayers will receive the refund after they file their 2021 taxes.
In June of 2021, Klutz announced that Indiana closed the 2021 fiscal year with reserves of $3.9 billion. A news release from Klutz’s office said when state reserves exceed 12.5% of state budget general fund appropriations for the following year, according to IC 4-10-22-2, an excess reserve transfer is triggered.
“We exceeded expectations and soared through the recession with one of the fastest recoveries on record thanks to strong fiscal leadership,” said Auditor Klutz. “As a state, we were able to financially navigate through the national pandemic and economic uncertainty, and unlike our neighbors, we can give back to our taxpayers while retaining reasonable state reserves.”
The annual report, prepared by the State Budget Agency, highlights the state’s fiscal year ending on June 30, 2021.
After performing this statutory calculation, the State of Indiana transferred $1.1 billion into its excess reserve account. Current Indiana law requires half, or $545 million, of the excess to be divided amongst Indiana taxpayers and to support teacher pensions.
Hoosier taxpayers will receive a one-time $125 taxpayer refund later this year if they filed an Indiana resident tax return for 2020 tax year with postmark date of January 3, 2022 or earlier, the news release said. The automatic taxpayer refund is separate from any Indiana individual income tax refund – taxpayers do not need to do anything to receive this refund.
Additional information from the Indiana State Auditor’s Office:
How taxpayers will receive their automatic refund depends on information contained in their 2021 Indiana individual income tax return. The one-time direct deposit of $125 will arrive in bank accounts beginning in May and continue through July if a taxpayer:
• filed an Indiana resident tax return for 2020 before Jan. 3, 2022; and
• filed a 2021 Indiana resident tax return by April 18, 2022; and
• listed direct deposit checking or savings account information for your 2021 Indiana income tax refund.
Taxpayers will receive a mailed check from the Auditor of State starting in July through August if they:
• do not meet the requirements for direct deposit; or
• filed for an extension of time to pay on their 2021 Indiana resident tax return; or
• included directed deposit information for an account associated with refund advance loans or similar arrangements; or
• could not otherwise have a direct deposit sent to their bank account.
Whenever possible, one refund of $250 will be issued by direct deposit or check for married couples filing jointly when both spouses are eligible for the automatic taxpayer refund.
For more information regarding the automatic taxpayer refund, visit the Auditor of State’s website .
