INDIANAPOLIS – State Auditor Tera Klutz, CPA confirmed Wednesday that the 1.7 million automatic taxpayer refund (ATR) checks are printing and the first group of checks should reach mailboxes later this week.
How taxpayers receive their $125 and $200 refunds will depend on how they filed their 2021 individual income tax return with the Department.
If taxpayers listed direct deposit (checking or savings account) information on their 2021 Indiana income tax refund, they should have already received their $125 direct deposit, with the other $200 forthcoming. If they have not received a direct deposit, they will receive a combined check from the Auditor of State for $325 (or $650 if filed jointly).
- On June 30, 2021, when state reserves exceeded 12.5% of state budget general fund appropriations for the following year, an $1.1 billion excess reserve transfer was automatically generated. The transfer was divided equally amongst Indiana taxpayers and teacher pensions.
- To qualify for the $125 (or $250 if filed jointly), taxpayers would have had to file an Indiana individual income tax return for 2020 with a postmark date of Jan. 3, 2022.
- In June of 2022, the state closed the books with an annual surplus of $3.9 billion, and when combined with its previous reserve balance, resulted in Indiana having over $6 billion in reserves. Governor Eric Holcomb called a legislative special session asking the General Assembly to return some of that surplus to Hoosiers.
- On August 5, 2022, Gov. Holcomb signed Senate Enrolled Act (SEA) 2 to provide a second ATR of $200 for any individual who qualified for the first refund of $125.