Governor Eric J. Holcomb announced Wednesday that an estimated 4.3 million taxpayers will receive a $125 refund after they file their 2021 taxes.
An estimated $545 million will be returned to Hoosiers after taxpayers file their 2021 state taxes. The Governor is working with leaders of the general assembly on legislation that will streamline the process and make an additional 910,000 taxpayers eligible for the credit. The typical taxpayer liability is approximately $1000. This payment represents a 12-13% one-time tax cut.
Once legislation passes, the Department of Revenue (DOR) will begin processing payments for taxpayers. The form of taxpayer payments will be based on how the 2021 return was filed. Taxpayers who apply for an extension will receive the payment after filing their return.
The DOR expects to complete refunds for taxpayers filing by the April 18, 2022, filing deadline by May 1, 2022. Once the details are finalized the DOR will provide additional information in 2022.