Budget Surplus Equals Tax Credits for Hoosier’s

Hoosier Taxpayers Taking Advantage of Tax Credits

INDIANAPOLIS – More than 1.5 million taxpayers already have taken advantage of Indiana’s Automatic Taxpayer Refund (ATR) credit as of March 10. About 76 percent of all taxpayers filing as of March 10 have qualified for the tax credit.

More than $171 million has been awarded to Hoosier taxpayers so far this season. At this point, the state is on target in projecting the amount of money to be distributed. By the closing of the tax season, the department expects to award approximately $361 million in tax credits to Hoosier taxpayers – funded entirely out of excess reserves at the close of fiscal year 2012.

In 2011, the Indiana General Assembly passed legislation providing for an Automatic Taxpayer Refund credit for eligible Indiana taxpayers when the state budget surplus exceeds 10 percent of the state’s appropriations. While tax year 2012 is the first year the credit is available, going forward it may be available every budget year (odd year) if a state budget surplus over a certain amount exists.

The refundable tax credit authorized for the 2012 tax year is $111 per eligible taxpayer ($222 for an eligible married couple filing a joint return). Dependents are not eligible to claim the ATR credit unless filing their own state tax return.

For more information on this tax credit, please visit, or if you have any questions specific to your return, please contact the department at (317) 232-2240 or contact us online at

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Kyle Wolfe

Author/blogger residing in Indianapolis, IN and sometimes in Chicago and Detroit. I really enjoy urban settings. You'll catch me at the local sushi bar, and testing out local wines and craft beers. Coffee bars are nice, and my goal is moving to the west coast before too long. If you must know, I prefer Mac over PC.
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