Indiana Automatic Tax Refund

Many Hoosier taxpayers will receive a one-time $125 taxpayer refund later this year under Indiana’s "Use of Excess Reserves" law. The Automatic Taxpayer Refund is separate from any Indiana Individual Income Tax refund you may receive. There is nothing you need to do to receive this refund.

Am I eligible?

You will receive an Automatic Taxpayer Refund if you filed an Indiana resident tax return for the 2020 tax year with a postmark date of Jan. 3, 2022, or earlier. An Indiana resident tax return means you filed your state taxes using one of the following:

• Form IT-40, Indiana Full-Year Resident Individual Income Tax Return.

• Form IT-40PNR, Indiana Part-Year or Full-Year Nonresident Individual Income Tax Return, if you were married and filed jointly AND you were an Indiana resident for the entire year (2020).

• Form SC-40, Unified Tax Credit for the Elderly AND you resided in Indiana for more than six months in 2020.

How will I receive my Automatic Taxpayer Refund?

How you receive your Automatic Taxpayer Refund depends on the information contained in your 2021 Indiana Individual Income Tax return. Your Automatic Taxpayer Refund is separate from other payments or refunds you may receive from the state.

You should receive your Automatic Taxpayer Refund by direct deposit if:

• You filed an Indiana resident tax return for 2020 before Jan. 3, 2022; and

• Filed a 2021 Indiana resident tax return by April 18, 2022; and

• Listed direct deposit checking or savings account information for your 2021 Indiana Income Tax refund.

One-time direct deposits of $125 will arrive in bank accounts beginning in May and continue through mid-summer.

Whenever possible, one refund of $250 will be issued by direct deposit or check for married couples filing jointly when both spouses are eligible for the Automatic Taxpayer Refund.

You should allow until Sept. 1 to receive your Automatic Taxpayer Refund. Independent Federal Credit Union does not have any way to determine when the deposits are scheduled or who is qualified to receive the deposits or checks. To learn more visit the Indiana Department of Revenue site by clicking below.

Indiana DOR