INDIANAPOLIS, IN – Automatic Taxpayer Refund payments began arriving in bank accounts earlier this month, but many Hoosiers are still waiting.
The payments are distributed in two ways by the state: some are sent via direct deposit, while others are mailed.
What happened to my money? What You Should Know About Indiana’s Automatic Tax Refund
The $125 payments are the result of a state law that returns money to Indiana taxpayers when the state’s fiscal year ends with a surplus. Couples who filed their taxes jointly will receive a $250 lump sum payment.
The state stated that direct deposit is the most likely method for people to receive their money, but checks will be mailed in some cases.
A mailed check is most likely in the following situations:
- Taxpayers provided direct deposit information related to refund advance loans or other similar situations.
- Taxpayers requested an extension to pay their state tax return for 2021.
- The state runs into a problem that prevents the funds from being directly deposited into an account.
- Paper checks will be distributed beginning in early July and will continue through September. The state will mail them to a taxpayer’s last known address, which is usually the one on their most recently filed tax return.
The state also stated that anyone who owes state income taxes will have their Automatic Taxpayer Refund applied to that balance. They would then be paid any remaining funds. The money could also be used to pay off debts owed to a state agency, a state university, a local government, or the IRS.
Holcomb provides a timeline for receiving a $125 Indiana tax refund.
The state acknowledged that due to the “complexities” of sending the money, eligible taxpayers may not receive a payment at first. If you haven’t received your payment by August 31, please contact the Indiana Department of Revenue.
What if your check is misplaced in the mail?
Taxpayers must complete an Affidavit of Lost or Unreceived Warrant (State Form 42850).
If a check is issued to a deceased individual, the estate must complete a Distributee’s Affidavit for Distribution of Estates (State Form 49377), if applicable, or an Affidavit of Lost or Unreceived Warrant.