Hoosiers can expect a larger refund the next time they file their taxes. That’s because Indiana closed out the fiscal year with $1.1 billion in excess reserves, triggering an automatic taxpayer refund.
State Representative jack Jordan (R-Bremen) said in a recent release, “While the final refund amount will not be calculated until later this year, early estimates suggest the refund could be as high as $170 per individual filer or $340 for a joint return.””
In Indiana, reserve balances in excess of 12.5% of the next year’s budget is required to be split, with half dedicated to pay down pension obligations and the other half given back to taxpayers. About $545 million will go to taxpayers and another $545 million toward pension liabilities. This will be the second time Hoosiers will receive an automatic taxpayer refund since the law passed in 2011.
Rep. Jordan said, “It’s clear that Indiana’s economy is making an unprecedented comeback as revenue continues to outpace our expectations. Our state is also providing record funding for our K-12 schools over the next two years, and we have a fully funded infrastructure plan. We also paid down over $1 billion in debt.” Jordan concluded his statement saying, “The state’s strong fiscal health will give us the flexibility needed to provide additional tax relief. I look forward to exploring opportunities for tax cuts and reforms next session. It’s my goal to make sure Hoosiers keep more of their hard-earned money