More than a year after a taxpayer refund was automatically generated according to Indiana law, the first round of paper checks have been mailed to 1.7 million eligible Hoosiers.
“To those Hoosiers who have been patiently waiting for their check, I want to say – the wait is over,” State Auditor Tera Klutz said in a statement Wednesday, August 17.
She added the first round of checks should hit mailboxes this weekend.
The checks will include both the automatic refund mandated by Indiana’s Use of Excess Reserves law and an additional giveback from the state’s current $6.2 billion in reserve funds, which was requested by Gov. Eric Holcomb and approved by legislators this month.
The automatic refund mandated by law was triggered June 30, 2021, when state reserves exceeded 12.5% of state budget general fund appropriations for the following year. A $1.1 billion transfer of excess reserves was automatically created, to be divided among eligible taxpayers in the amount of $125 each. Married couples filing jointly will receive $250.
Taxpayers who filed an Indiana individual tax return for the 2020 tax year, postmarked by Jan. 3, 2022, are eligible.
The second amount, billed as inflation relief for Hoosiers, will be $200 for individual taxpayers and $400 for married couples filing jointly. Anyone qualified to receive the first refund of $125 is eligible for the second payment.
For most people, the payments will be issued in a single check of $325 for individual taxpayers or $650 for joint filers.
Some Hoosiers have already received the first refund of $125 by direct deposit. Those who have not will receive a paper check.
With about 50,000 checks printed each day, the process should be concluded by early October.
Klutz also noted the delay in disbursing the funds, which allowed both refunds to be issued at the same time, resulted in a savings of $1 million in postage and handling costs.
This article originally appeared on The Center Square.
