When Americans file their tax returns, they will receive an additional $125 tax refund.
It is only applicable to residents of Indiana.
Once they file their tax returns for 2021, they will receive a check or direct deposit.
Due to state law, the state is required to refund taxpayers if the reserves are worth more than 12.5% of the available funds.
Approximately $1.2 billion of actual revenue exceeded the forecast in April, triggering the refund.
“I’m not surprised but I’m very pleased that, once again, Indiana has exceeded expectations,” said Tera Klutz, the state auditor.
“In fact, we soared through the recession with one of the fastest recoveries on record.”
A total of $4 billion is currently in reserve, which is more than 23% of the general fund.
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Residents of Indiana haven’t received a refund of this type since 2013.
At the beginning of July, Indiana completed its fiscal year 2021 with almost $4 billion in reserves, equal to 23% of its expenditures.
An extra $545 million will be returned to Hoosiers, while some of the money will be put toward a teacher pension fund.
State officials are planning to work with low-income residents not filing taxes, as well as taxpayers who file.
By doing so, they will be able to receive their $125 entitlement.
Tax deadline is April 18, 2022, so the payments can be reclaimed before April.
