Taxpayers in Indiana who qualify for a $125 refund will receive it

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Indiana announced that each Hoosier taxpayer will have a return of $125 after they file their taxes in 2022.

In the time of the COVID-19 pandemic, stimulus checks have served as lifelines for millions of Americans. Now that the federal government has stopped handing out these checks, it is now time for the state governments to step in.

The financial aid packages go beyond stimulus checks thanks to tax breaks. There are extended benefits programs, increases in unemployment benefits, Child and Dependent Care tax credit among others. These initiatives vary per state.

This return is largely in part of reaching higher state revenues than expected in the 2021 fiscal year. Last July 2021, Indiana leaders announced that Hoosiers would receive a combined refund worth $545.3 million.

Indiana’s legislation states that should the state’s reserves reach 12.5% of the general fund appropriations or higher with the exception of K-12 education reserves, Hoosiers get a cashback. Indiana ended 2021 with $4 billion in reserves which equates to 23% of its expenses. A portion of the excess money will be allocated in paying debts associated with the teacher pension fund, while $545 million will be divided among 4.3 million Hoosiers.

Indiana’s Gov. Eric Holcomb emphasized that despite the pandemic, the state managed to exceed all expectations with an unanticipated amount in the reserves. He added that it is their civic responsibility to return the money to the hands of the taxpayers instead of leaving it with the government.

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House Speaker Todd Huston plans to work with Holcom’s office to add 910,000 more taxpayers — who pay their income taxes but do not qualify for the threshold amount to file a return — eligible for credit. Once the legislation is passed, the intended recipients will be paid through check or direct deposit, all of which will depend on how they filed their 2021 tax returns.

Hoosiers received a similar automatic taxpayer refund last 2013, under former Gov. Mitch Daniels.