Indiana Auditor: First Round of Automatic Taxpayer Refund Checks Ready to Go Out

Hoosier taxpayers should start receiving their refund checks this weekend.

Shutterstock photo.

INDIANAPOLIS - State Auditor Tera Klutz, CPA confirmed the 1.7 million automatic taxpayer refund (ATR) checks are printing and the first group of checks should reach mailboxes later this week.

“We have worked tirelessly with the Governor’s team to get Hoosiers their checks, and despite the many challenges we encountered, we are pleased to get printing started,” said Auditor Klutz. “To those Hoosiers who have been patiently waiting for their check, I want to say - the wait is over! We have successfully printed the first round of checks, which eligible Hoosiers should start to see receive this weekend.”

• On June 30, 2021, when state reserves exceeded 12.5% of state budget general fund appropriations for the following year, an $1.1 billion excess reserve transfer was automatically generated. The transfer was divided equally amongst Indiana taxpayers ($125 each) and teacher pensions.
• To qualify for the $125 (or $250 if filed jointly), taxpayers would have had to file an Indiana individual income tax return for 2020 with a postmark date of Jan. 3, 2022.
• In June of 2022, the state closed the books with an annual surplus of $3.9 billion, and when combined with its previous reserve balance, resulted in Indiana having over $6 billion in reserves. Governor Eric Holcomb called a legislative special session asking the General Assembly to return some of that surplus to Hoosiers.
• On August 5, 2022, Gov. Holcomb signed Senate Enrolled Act (SEA) 2 to provide a second ATR of $200 for any individual who qualified for the first refund of $125.

How taxpayers receive their $125 and $200 refunds will depend on how they filed their 2021 individual income tax return with the Department. If taxpayers listed direct deposit (checking or savings account) information on their 2021 Indiana income tax refund, they should have already received their $125 direct deposit. If they have not received a direct deposit, they will receive a combined check from the Auditor of State for $325 (or $650 if filed jointly).

“Like many industries, state government was not spared the headaches that come from dealing with a shortage – in our case, a paper shortage,” said Auditor Klutz. “We typically don’t print this many checks at one time, which created the challenge of locating the amount of paper required to print the 1.7 million checks needed.

“Luckily, this challenge became a ‘blessing in disguise’ since the paper arrived within days of SEA 2 becoming law, enabling us to send Hoosiers one check instead of two which saves the State an additional $1 million in processing, printing and postage costs.”

With roughly 50,000 checks printed each day, Auditor Klutz anticipates all 1.7 million refund checks being mailed by early October.

SCAM ALERT: Auditor Klutz, along with the Department of Revenue, also cautiously reminds Hoosiers to be mindful of potential scams about ATRs. All refunds will be issued by direct deposit or check.

Individuals should ignore any texts, emails or phone calls regarding these refunds, especially messages containing links or requesting personal or financial information, such as Social Security or bank account numbers. If taxpayers have any questions on the validity of messages or calls, please contact the Auditor of State’s office or Department of Revenue directly.