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INDIANAPOLIS – Millions of Indiana taxpayers can expect a little extra back from the state when they file their taxes.

Gov. Eric Holcomb said an estimated 4.3 million taxpayers will receive a $125 refund after filing their 2021 state taxes.

The state is returning $545 million to Hoosiers after ending its fiscal year with a surplus. Under state law, the extra money becomes a “refundable tax credit.”

Holcomb said he’s working with the general assembly on legislation to streamline the process and make an additional 910,000 taxpayers eligible for the credit, which represents a 12-13% one-time tax cut on a typical taxpayer’s liability.

“Despite a pandemic, Indiana exceeded all expectations and closed the state fiscal year with an unprecedented amount in reserves,” Holcomb said in a statement. “We have an obligation to put this money back in the hands of taxpayers instead of leaving it in the hands of government.”

Once the legislation passes, the Department of Revenue will begin processing payments. The form of payment will be based on the method Hoosiers use to file their 2021 returns. Taxpayers seeking an extension will get their refund after filing.

The Department of Revenue expects to complete the refunds by May 1, 2022. The tax filing deadline is April 18, 2022, since April 15 falls on Emancipation Day in DC.