Indiana automatic taxpayer refund to be sent out this summer

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Hoosiers should expect to start receiving the promised one-time $125 automatic taxpayer refund in the coming weeks, Indiana Gov. Eric Holcomb announced Wednesday.

After the tax-filing deadline passes on April 18, the state 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.

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. The automatic refund was triggered last summer after the state ended the last fiscal year with nearly $4 billion in reserves, which was $1.2 billion more than expected.

Refunds will begin in May through direct deposit for residents who provided their banking information on their return when they filed their 2021 income taxes. Direct deposits are expected to continue through July.

For those who did not include banking information on their returns, 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 refund is in addition to and separate from any refund Hoosiers may receive after filing their 2021 state income tax returns, and no further action in required to receive the $125 refund.

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