INDIANAPOLIS — Indiana came out of the pandemic year strong, paying off for its residents.
In July, Auditor Tera Klutz said the state ended the fiscal year with $3.9 billion at the end of June, a better-than-expected result given the COVID-19 pandemic and the economic strain it placed on Hoosiers and businesses.
The extra $1.1 billion will go to bolster retirement funding and become a “refundable tax credit” for Hoosier taxpayers. The move is required by law when Indiana’s state surplus reaches a certain level, Klutz said.
In December, the Auditor of State along with the Indiana Department of Revenue, Office of Management and Budget and the State Budget Agency will meet to discuss how much each filer will receive.
The Auditor of State said they are waiting for more late filers to have a chance to file their 2020 individual tax return so they have a better idea of how many Indiana individual filers they have.
The Auditor of State said Indiana law requires half of the excess to be divided so roughly $545 million will go back to taxpayers.
According to the latest Census Data, there are 5,192,579 adults 18 or older living in Indiana. If broken down evenly, each adult would receive $104.95. The last time Indiana residents got a refund from a surplus, the amount was about $110.
The state is also trying to figure out how taxpayers will get the tax credit. The Auditor of State said it will likely be a tax credit when people file their 2021 tax returns. The credit will reduce a taxpayer’s 2021 tax liability and possibly result in a refund if the taxes owed are less than the credit amount. However, leaders could also decide to send actual checks to each taxpayer.
The Auditor of State will announce all final plans and amounts later in 2021.