INDIANAPOLIS – Hoosiers expecting a little extra in their tax refund will have to wait before cashing in.

This year, almost all Indiana taxpayers are due to receive a one-time $125 Automatic Taxpayer Refund from the state. Married couples filing jointly will get $250.

The state is returning $545 million to Hoosiers after ending its fiscal year with a surplus. Under state law, the excess money turns into a refundable tax credit.

Anyone expecting to receive that money with their typical refund will be disappointed: the money is separate from any refund you may get from filing your 2021 state income tax return.

According to the Indiana Department of Revenue, taxpayers will receive one-time direct deposits to their bank accounts beginning in May. The payments will continue throughout the summer.

Some Hoosiers may end up getting a physical check instead.

Hoosiers may need to be patient; the state said taxpayers should allow until Sept. 1 to get their money. Again, individuals will get $125 while married couples filing jointly will get $250.

Who’s eligible for the Automatic Taxpayer Refund?

Residents who’ve filed an Indiana tax return for the 2020 tax year with a postmark date of Jan. 3, 2022, or earlier will receive the money.

Those residents must have filed their taxes using one of the following methods:

  • 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 get my money?

In most cases, the state said the money will be sent via direct deposit based on information from your tax return.

The Department of Revenue said taxpayers would get their money via direct deposit under the following three conditions:

  • They 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 their 2021 Indiana Income Tax refund

Will everyone receive their money via direct deposit?

While the Department of Revenue said the majority of Hoosiers would likely receive their money via direct deposit, it will also send out checks to some taxpayers.

Hoosiers may receive a physical check from the state under the following conditions:

  • They don’t meet the requirements for direct deposit
  • They filed for an extension of time to pay their 2021 Indiana resident tax return
  • They included direct deposit information for an account associated with refund advance loans or similar arrangements
  • Their Automatic Taxpayer Refund could not be otherwise deposited directly into their bank account

The state expects to mail out the checks in “late summer,” although it noted the timeline is “dependent on supply-chain issues affecting the paper industry and is subject to change.”

Do I need to do anything to make sure I get my $125?

The Department of Revenue said no additional action is required for Hoosiers to get their money—there’s nothing special you had to fill out on your return and no place you need to register in order to receive it.

The state did say filing your tax return electronically and getting your individual state tax return refund via direct deposit is the fastest way to get the Automatic Taxpayer Refund. It’s also important to make sure your banking information is accurate.

What if there’s a problem with my bank account?

If the state tries to send your refund to a bank account and it gets rejected, the money will be returned to the state and the auditor will send a paper check instead.

What if I’ve moved or changed addresses?

The state recommends you visit this website to go through the change of address process. It’s also a good idea to send a message through the INTIME secure messaging portal asking the state to send your Automatic Taxpayer Refund check to the new address.

Can I check on the status of my Automatic Taxpayer Refund?

The Department of Revenue’s “Where’s My Refund” portal does not include information about the automatic refund. It only involves refund information for your individual tax return.

If you don’t receive your money from the state by direct deposit, you’ll get a check from the state auditor during the summer.

The state hasn’t yet provided information on what to do if you don’t get the money. The Department of Revenue said that information would be available on its website “on or around Sept. 1.”

Are there any reasons I won’t get the money?

Under certain circumstances, individuals may not receive their money because it’s being withheld for other reasons, including to offset “unpaid state or federal tax liabilities, liabilities to other state agencies, including – but not limited to – unpaid child support or unemployment overpayments, and unpaid tuition to Indiana public colleges and universities.”

If your automatic refund is being withheld for those reasons, the state is supposed to send you a letter informing you of such.