Auditor of State Coordinates Automatic Refund to Hoosier Taxpayers

Local Sources – Indiana Auditor of State Tera Klutz announced Wednesday 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, Auditor Klutz announced that Indiana closed the 2021 fiscal year with reserves of $3.9 billion. 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 automatic taxpayer refund is separate from any Indiana individual income tax refund – taxpayers do not need to do anything to receive this refund.

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.