INDIANAPOLIS — EDITOR'S NOTE: The video above is a report from November 2021 about a change in the federal tax bracket.
Indiana Gov. Eric Holcomb announced Wednesday approximately 4.3 million Hoosier taxpayers will receive a $125 refund after filing their 2021 taxes.
Holcomb said the state closed the fiscal year with an unprecedented amount in reserves, allowing the opportunity to return some of that back to citizens.
"We have an obligation to put this money back in the hands of taxpayers instead of leaving it in the hands of government," Holcomb said.
An estimated $545 million will go back into the pockets of Hoosiers after they file taxes. Holcomb is working with legislators to streamline the process and make another 910,000 taxpayers eligible for the credit. When that legislation passes, the Indiana Department of Revenue will start to process payments.
The DOR expects to to have all refunds for Indiana taxpayers completed by the April 18, 2022 filing deadline by May 1, 2022. The agency will provide further information about the extra money in 2022.
The $125 credit represents a 12-13% tax cut for most Hoosiers. The typical taxpayer liability is around $1,000.
How taxpayers will get their payments will be based on how their 2021 returns were filed. Taxpayers who apply for an extension will receive the payment after filing their return.