Automatic Taxpayer Refund

Hoosier taxpayers are not required to file an amended federal return. However, if you included the ATR amount when adding back the state refund total amount received on your federal return, you may wish to amend your return to add back the amount listed on your 1099-G minus the ATR amount you received.

If you excluded the ATR amount received from the state refund total amount that you added back on your federal return, you do not need to file an amended federal return.

Regardless of the 1099-G amount you added back on your federal return, you do not need to file an amended Indiana income tax return. This is because Indiana provides a deduction for any state tax refund amount added back on your federal tax return (IC 6-3-1-3.5(a)(6)).

Thanks to efforts over the last decade that have allowed Indiana to fund critical needs while maintaining our state’s competitive tax environment, many Hoosier taxpayers have received a one-time $125 taxpayer refund under Indiana’s "Use of Excess Reserves" (IC 4-10-22) law. Under this law, Indiana must issue a refund to Hoosier taxpayers when the state’s budget reserves meet certain thresholds, which happened for Fiscal Year 2021 and last occurred in 2012. In most cases, these refunds are separate from any Indiana Individual Income Tax refund you may have received. For more information, read Information Bulletin #110.

A bill authorizing a separate $200 ATR was passed during the 2022 Special Session of the Indiana General Assembly and signed into law by Governor Holcomb in August 2022.

Who is eligible to receive these refunds and how you will receive them is different for each ATR. Review information on this website for more on eligibility and refund methods.

As Indiana’s tax administrative agency, DOR was responsible for issuing ATRs by direct deposit and providing the State Comptroller with the information necessary to send more than 1.5 million ATR checks to eligible Hoosiers.

In 2022, DOR distributed more than 8.6 million ATRs totaling over $540 million for the first ATR and in excess of $860 million for the additional ATR.

DOR and the State Comptroller will continue to issue, and in some cases, reissue refunds as needed to eligible taxpayers.

Only those who filed an Indiana resident tax return for the 2020 tax year by Dec. 31, 2021, qualified for the $125 ATR.

DOR issued direct deposits beginning in May 2022 for those who qualified for the $125 refund and provided direct deposit information for their tax refund on their 2021 Indiana Income Tax return. Whenever possible, DOR issued combined payments for taxpayers who filed joint tax returns in 2020.

If you did not receive a state tax refund in 2021, did not provide DOR with direct deposit information, or your refund could not be issued by direct deposit for any reason, you should have received one check for both refunds.

If you were eligible for the $125 ATR, you were automatically eligible for the $200 ATR and should have received either:

• two direct deposits ($125 and $200 for single or married filing separate; $250 and $400 for married filing jointly);
• a direct deposit and a check; or
• one combined check totaling $325 for both ATRs; ($650 for customers that filed a 2021 married filing jointly tax return).

Note: Eligible taxpayers received those ATR payments in 2022 separately from their Indiana Individual income tax refund. Whenever possible, DOR issued combined payments for taxpayers who filed joint tax returns in 2020.

If you were not eligible for the $125 ATR, you are eligible for the $200 refundable tax credit ATR only if you:

• received Social Security benefits in 2022 (eligibility documents will be required); and
• are not claimed as a dependent on someone else’s tax return.

Note: To claim the $200 ATR as a refundable tax credit, you must file a 2022 Indiana resident tax return no later than Dec. 31, 2023 See instructions provided above.

If you are eligible, you must file a 2022 Indiana resident tax return (Form IT-40 or IT-40PNR) or a Unified Tax Credit for the Elderly (Form SC-40) to claim the $200 ATR as a refundable tax credit no later than Dec. 31, 2023

If you didn’t qualify for the initial ATR but are eligible for the $200 ATR, you will not receive a direct payment. Instead, you must file a 2022 Indiana resident tax return no later than Dec. 31, 2023 and claim the $200 ATR as a tax credit.

DOR cannot make allowances for those who are ineligible by law for any tax refund or issue the $200 ATR as a separate payment for those who did not receive the $125 ATR. The eligibility and distribution rules are established in statute. More information is available in Information Bulletin #110.

You must file a 2022 state tax return to claim the $200 refundable tax credit, even if you do not normally file a tax return due to your income.

The following Indiana resident tax forms may be filed to claim the $200 refundable tax credit:

• Form IT-40: Indiana Full-Year Resident Individual Income Tax Return
• Form IT-40PNR: Indiana Part-Year or Full-Year Nonresident Individual Income Tax Return, if you were married and filed jointly and you were an Indiana resident for the entire year
• Form SC-40: if you qualify for the Unified Tax Credit for the Elderly, and you resided in Indiana for the entire 2022 tax year.

Tax credits are not the same as tax deductions. Tax credits are applied dollar-for-dollar as an additional amount to your tax refund or used to reduce the amount of any tax you may owe. Eligible recipients will receive the $200 ATR in the form of a refundable tax credit on their state income tax return.

If you were eligible for the $125 ATR, you qualified for the $200 additional refund and do not need to do anything to claim either ATR. You should have received either two direct deposits ($125 and $200), a direct deposit and a check, or one combined check totaling $325 (or $650 for married filing jointly) for both ATRs. Whenever possible, payments were combined for taxpayers who filed a joint tax return in 2020.

If you were not eligible for the initial $125 ATR, you would qualify for the $200 refundable tax credit if you:

• received Social Security benefits in calendar year 2022 (eligibility documents will be required); and
• are not claimed as a dependent on a 2022 Indiana income tax return.

Note: To claim the $200 ATR as a refundable tax credit, you must file a 2022 Indiana resident tax return no later than Dec. 31, 2023, to claim the $200 ATR as a tax credit. See instructions provided above.

If you were ineligible for the $125 ATR but qualify for the $200 ATR, you must file a 2022 Indiana resident tax return no later than Dec. 31, 2023, to claim the $200 ATR as a refundable tax credit.

Instead of a direct payment, you will receive the $200 ATR tax credit as a refund, or it will be applied toward any additional taxes owed or refund due. You will be able to check the status of your refund in INTIME after DOR finishes processing your tax return.

DOR’s “Where’s my Refund” phone and internet lookups will not have ATR information.

If you were eligible to receive both the $125 and the $200 ATRs and did not receive them as a direct deposit or check, you should:

• Review eligibility guidelines for the $125 and $200 ATRs.
  Remember, if you do not qualify for the $125 ATR but are eligible for the $200 ATR, you will not receive a refund automatically. You will need to file a 2022 Indiana resident tax return no later than Dec. 31, 2023, to claim the refundable tax credit.
• If you have moved, update your address with DOR. Refer to other questions provided in these FAQs for more information.
• To help keep our phone lines open for taxpayers who need assistance with non-ATR issues and help us minimize wait times, send DOR a secure message using INTIME, the agency’s e-services portal. DOR will review your eligibility, contact you for any additional information, and process a refund request as needed.

You may also contact DOR Customer Service at 317-232-2240, Monday through Friday, 8 a.m. – 4:30 p.m. ET.

You can also make an appointment at one of DOR’s district offices for in-person assistance. Refer to information on our website for location information and hours of operation.

Change your address: Go to INTIME to complete the change of address process (login required). The INTIME User Guide is available on INTIME’s Tax Center page to guide you through the process. You may also change your address by mail or in person at one of DOR’s district offices.

Note: DOR customer service representatives cannot accept changes by phone.

DOR must wait until the post office returns your original check to DOR as non-deliverable before issuing you a replacement refund check. At that time, our system will automatically check for a new address and request a replacement check on your behalf. You should allow 45 business days to receive your ATR check. If you have not received your check by that time, you may file an Affidavit for Lost or Not Received Warrant (State Form #42850) with the State Comptroller.

If you were eligible to receive both the $125 and the $200 ATRs, and the ATR check was lost, damaged, or destroyed, you can:

• File an Affidavit for Lost or Not Received Warrant (State Form #42850) with the State Comptroller.
• To help keep our phone lines open for taxpayers who need assistance with non-ATR issues and help us minimize wait times, send DOR a secure message using INTIME, the agency’s e-services portal. DOR will review your eligibility, contact you for any additional information, and process a refund request as needed.

Contact DOR Customer Service at 317-232-2240, Monday through Friday, 8 a.m. – 4:30 p.m. ET.

You may also make an appointment at one of DOR’s district offices for in-person assistance. Refer to information on our website for location information and hours of operation.

For your security, DOR and the State Comptroller cannot add or update banking info. You should have received a check if your direct deposit did not go through. If you believe you were eligible for the $125 and $200 ATRs and did not receive a direct deposit or check, refer to guidance on this page.

Customers who died on or after Jan. 1, 2020, and who meet other eligibility requirements may qualify for the $125 and $200 ATRs. Payments were issued by direct deposit or check according to the information DOR had on file.

Widows and/or executors of the estate may be able to cash or deposit the check without taking additional steps, depending on your financial institution. If your institution does not allow you to cash or deposit the check, refer to the Reissuance of Refund Issued to a Deceased Person State Form #57193 from the State Comptroller for additional guidance.

If using this form, please note that it must be notarized, and you will need to include a copy of the death certificate (original death certificates will not be returned). The form can take up to six weeks to process before the State Comptroller will reissue a new check.

Your ATRs may be used to offset unpaid state or federal tax liabilities, or liabilities to other state agencies, including—but not limited to—unpaid child support or unemployment overpayments, and unpaid tuition to Indiana public colleges and universities.

You will receive a letter if your ATR is used to offset a liability. This letter may arrive after you receive the ATR.

DOR cannot resolve issues with offsets requested by the IRS or other organizations. You must contact the organization requesting the offset directly if you have questions or need assistance. The organization(s) will be listed in the letter you receive from DOR.If the balance on your offset(s) is less than the amount of the ATRs, you will receive a check for the difference between the amount of the ATR refunds and the amount offset.

If you are on a DOR payment plan, the $200 ATR tax credit will be applied to the balance due. You will receive a letter from DOR with more information.

You should continue to make your regular payments according to your payment plan agreement.

If the balance on your payment plan is less than the amount of the ATRs, you will receive a check from the State Comptroller for the amount of the ATRs minus any balance on your payment plan (or other offsets).

If you filed your 2020 Indiana Individual Income tax return jointly, but have since divorced and need the check separated, you should contact the Indiana Department of Revenue (DOR) directly. How you should contact DOR depends on how you received the ATR(s).

If you received the ATRs by check, you should mail the original check along with a request to split the refund to:

Indiana Department of Revenue
ATTN: Non-Responsible Spouse
P.O. Box 7202
Indianapolis, IN 46207

If you received a direct deposit or a direct deposit and a check, you should send DOR a secure message using INTIME, the agency’s e-services portal, or call DOR Customer Service at 317-232-2240, Monday through Friday, 8 a.m. – 4 p.m. ET.

Taxpayers who were eligible for both the $125 and $200 ATR received those payments in 2022 separately from their Indiana Individual income tax refund, either as two direct deposits ($125 and $200), a direct deposit and a check, or one combined check totaling $325 for both ATRs (or $650 for married filing jointly). Whenever possible, payments were combined for taxpayers who filed a joint tax return in 2020.

If you were not eligible for the $125 ATR but qualify for the $200 ATR, you must file a 2022 Indiana resident tax return no later than Dec. 31, 2023, to claim it as a refundable tax credit. Eligible recipients will receive the $200 ATR in the form of a refundable tax credit on their state income tax return.

This means you may or may not receive a tax refund when claiming the $200 ATR as a tax credit.

The $200 tax credit will be added dollar-for-dollar to the amount of any tax refund you may receive or used to reduce the amount of any additional tax you may owe.

Indiana and other states are waiting for the IRS to clarify how to report refunds like the ATR on federal tax returns filed in 2023. DOR will update this website with additional information as it becomes available. DOR recommends subscribing to email updates for the ATR information page.

Assuming the IRS follows the same approach for ATR as other refunds, you may need to pay federal income tax on your Indiana Individual Income tax refunds, including ATRs.

If you took the standard deduction and did not deduct state taxes on your 2021 federal tax return, you do not need to pay federal tax on your Indiana tax refund.

If you itemize on your federal tax return, all or some of the ATR may be taxable at the federal level, depending on your situation. Indiana will not tax any amount of the ATR required to be included as income at the federal level. Indiana Code 6-3-1-3.5(a)(6) already provides a deduction for the amount included as income at the federal level:

You may have received a Form 1099-G, which is a report of income you received from DOR in 2022, including ATR amounts. You may or may not need this form to file your federal tax return, depending on whether you need to report ATR income as taxable income.

• If you did not itemize your 2021 federal tax return, you will not need a Form 1099-G to report ATR income on your federal tax return and can disregard it.
• If you itemized your 2021 federal tax return, you may need a Form 1099-G to report ATR income on your federal tax return. If you did not receive a Form 1099-G from DOR, you may contact DOR Customer Service by INTIME messaging or phone at 317-232-2240 to request a form.

If you included “recovered” itemized deductions as other income on your federal income tax return by completing the “other income” line on federal Form 1040/1040SR, then that amount should be deducted on your Indiana income tax return.

A recovered state tax refund should be reported on its own line called 'State tax refund reported on federal return' on the deduction schedule (IT-40 Schedule 2, or IT-40PNR Schedule C).

All other recovered itemized deductions should be reported on the line called 'Recovery of deductions' on the deduction schedule (IT-40 Schedule 2, or IT-40PNR Schedule C).

If you took an itemized deduction in an earlier year for state taxes paid that were later refunded, then you may need to include all or part of the refund as income on the tax return. Whether you are required to add back any of the tax refund depends on the interplay of the amount of the refund, any other deductions taken, and the federal, state and local tax limitations. (This calculation is made on Worksheet 2 of Publication 525.)

DOR cannot provide guidance on federal tax matters. Refer to irs.gov or a qualified tax professional for more information.