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INDIANAPOLIS – The state is making progress with Automatic Taxpayer Refund payments as uncertainty remains over the timeline for a proposed second round of direct relief to Hoosiers.

According to the Indiana Department of Revenue, over 1.5 million Automatic Taxpayer Refund payments have been issued to 2 million taxpayers as of July 6.

The department is now on its third round of payments, which were issued via direct deposit on July 1 and should start showing up in bank accounts. The initial round of payments sent in May was the largest, according to the Department of Revenue.

The state will continue to issue the payments by direct deposit whenever possible when tax returns are received and processed, officials said.

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 one-time refundable tax credit.

Individual taxpayers are due $125, with married couples who filed jointly getting a $250 payment.

Check status

While the majority of the money is being distributed via direct deposit, some taxpayers will receive a check in the mail. The Auditor of State and Indiana Department of Revenue are coordinating on those payments.

The Auditor of State said the “state remains on schedule to issue payments later this month” regarding the checks. State officials were unable to comment on how a proposed plan by Gov. Holcomb for an additional payment would affect the mailed checks in terms of timelines or amounts.

A mailed check is likely under the following circumstances:

  • Taxpayers provided direct deposit information tied to refund advance loans or similar circumstances
  • Taxpayers filed an extension to pay their 2021 state tax return
  • The state encountered a problem preventing the money from being directly deposited into an account

The state will mail checks to a taxpayer’s last known address, generally the one listed on their most recent tax return.

The state aims to have all payments, whether direct deposit or check, distributed by September. Taxpayers should wait until Sept. 1 before contacting the Department of Revenue about the status of their payment if they’ve not yet received it.

Another round of payments?

In all likelihood, Indiana taxpayers will receive a second payment this summer as part of a proposal by the governor to help ease inflation and high gas prices.

Holcomb proposed giving taxpayers $225 each ($450 for married couples filing jointly) from the state’s surplus, returning about $1 billion to Hoosiers.

The General Assembly still needs to approve the plan; House Speaker Todd Huston and Senate President Pro Tem Rodric Bray have both expressed support for it.

Holcomb called the General Assembly for a special session on July 6. And while that’s the official “start date” of the session, Republican leaders don’t plan to convene until July 25.

Under state law, a special session lasts 40 days. That means lawmakers have until Aug. 15 to wrap up things up.  

Why the delay? After the Supreme Court’s landmark decision to overturn the Roe v. Wade decision, Holcomb and state lawmakers signaled they’d use the special session to pass new abortion restrictions.

It all muddies the timeline for the additional relief Holcomb proposed for Hoosier taxpayers, although it’s certain payments won’t arrive before July 25.