Indiana taxpayers can expect an automatic $125 state refund this year.
Gov. Eric Holcomb said taxpayers should start receiving the Automatic Taxpayer Refund in May, resulting in a 12% cut in the average resident’s annual income tax liability.
After the April 18 tax filing deadline, 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 start being sent 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, the state said.
Holcomb announced in December that an estimated 4.3 million Indiana taxpayers would receive a $125 refund after filing their 2021 taxes. An estimated $545 million will be returned to residents.
Residents do not need to take any action to receive the refund, the state 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.