INDIANAPOLIS (WANE) – The state of Indiana will provide a refundable tax credit to all tax filing Hoosiers.
State Auditor Tera Klutz, CPA (Certified Public Accountant) announced Wednesday that Indiana closed the 2021 fiscal year with reserves of $3.9 billion. Of the total, $1.1 billion of the funding will be transferred and split between retirement funding and a refundable income tax credit for Hoosier taxpayers.
“It’s pretty unique for a state to send money back to their residents in a form of a tax refund. Not only that, we were able to pay a billion dollars down on debt in this last budget and to be able to take another $545 million and pay the additional debt down. While other states continue to add debt, this is going to add more flexibility to the budget in future years,” said Rep. Chris Judy (R-Fort Wayne). “It’s a very unique and exciting time in the state of Indiana. Looking forward I hope that we can cut some taxes.”
Single filers could receive up to $170 and joint filers could see $340 in refunds. The money is from the Indiana Automatic Taxpayer Refund Bill that was passed by the Statehouse Republicans in 2011.
“I think it’s miraculous that we are able to do this Briana. I don’t know of another state in the country that offers residents, taxpayers the opportunity to take advantage of the state collecting revenues more than we anticipate,” said State Representative Daniel Leonard (R-Huntington). “Some of that comes from people during the pandemic saved more than normal and now that we are opening things up, they are spending money. So that tax revenue from the sales tax has just been outstanding. Because of that we can give some of that back to the people in Indiana and make Indiana more of a desirable place.”
This is a money will be a tax credit, so residents will receive it when they file their taxes in spring 2022 and it does not require repayment.
Under the law, anytime the state’s reserve dollars go above 12.5% of the total budget, the money is distributed to taxpayers.
“It’s very good Briana that we are able to do that, I would encourage people to look at pension funds both TRF (Teachers’ Retirement Fund) and PERF (Public Employees’ Retirement Fund) in other states and see what they are like,” Rep. Leonard said.
Governor Eric Holcomb sent WANE 15 this statement :
“We quickly pivoted from managing through a once anticipated recession due to the ramifications of the COVID-19 pandemic to closing the state fiscal year with $3.9 billion in combined reserves,” stated Indiana Governor Eric Holcomb. “Now, with our 19th straight balanced budget, we are working on everything from mental health programs and health care supports to record increases in K-12 tuition support. We’re investing in state public facilities and infrastructure projects statewide on a level never seen before all the while doing everything, we can create a highly skilled workforce to fill the open jobs of today and tomorrow.”Indiana Governor Eric Holcomb
The last time Hoosiers received the tax credit was in 2012.