STATEHOUSE (March 17, 2022) – About 900,000 additional Hoosiers will now qualify for the $125 automatic taxpayer refund this spring under a new law recently signed by the governor, according to local lawmakers.
“Instead of growing the size of government, it’s only right to return this money to the people who earned it in the first place,” said State Rep. Matt Hostettler (R-Patoka). “This extra money could be a help for many families.”
State Rep. Cindy Ledbetter (R-Newburgh) said higher-than-expected state revenue collections during the 2021 fiscal year triggered the state’s automatic taxpayer refund. As a result, Hoosier taxpayers will receive a combined refund of over $545 million when they file their taxes this year.
“Indiana continues to be a desirable place to do business and that’s a big reason we’re in such a strong fiscal position,” Ledbetter said. “Strong revenue projections combined with a track record of responsible policies mean more money for taxpayers.”
State Rep. Wendy McNamara (R-Evansville) said she supported Senate Enrolled Act 1 to expand the list of who qualifies for a $125 refund to include those who did not earn enough money to file a state return. McNamara said these Hoosiers should also receive a refund because they still pay state sales taxes, which are deposited into the state’s general fund, and, in the case of retirees, may have paid income taxes throughout their working years.
“With this law, even more Hoosiers can expect an automatic tax refund this spring,” McNamara said. “With rising nationwide inflation, every little bit helps when it comes to paying household bills.”
State Rep. Tim O’Brien (R-Evansville) said depending on how Hoosiers file their state tax returns, refund payments could be made by direct deposit or by mailed checks. The Indiana Department of Revenue expects to have refunds processed by May 1 for Hoosiers who complete their taxes by the April 18 deadline.
“Republican lawmakers worked hard to pay down debt, invest in successful programs and save for a rainy day,” O’Brien said. “Our revenues continue to outpace projections and it’s only right that we return money back to taxpayers.”
