INDIANAPOLIS – The state released some additional guidance regarding the Automatic Taxpayer Refund.

Some Hoosiers will be able to claim the money as a refundable tax credit. Those eligible for the tax credit must meet the following conditions:

  1. They were not eligible for the initial, $125 Automatic Taxpayer Refund sent in 2022
  2. They received Social Security benefits in 2022
  3. They are not claimed as a dependent on someone else’s tax return

The state sent a pair of taxpayer refunds last year, with the initial $125 sent in accordance with state law after Indiana had a budget surplus. The legislature approved a second $200 refund during its summer special session and expanded eligibility guidelines.

To get the refundable tax credit, Hoosiers must file an Indiana tax return by Dec. 31, 2023, and claim the $200 as a refundable tax credit.

That means, according to the Indiana Department of Revenue, that some Hoosiers who don’t normally file a tax return due to their income status will need to file one in order to claim the money.

“Tax credits are not the same as tax deductions,” the department noted. “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 tax credit on their state income tax return.”

Additional information on claiming the $200 refund as a credit is included in 2022 tax year instruction booklets and will also be part of DOR-certified tax preparation software products. You can find the state’s tax booklets and forms for 2022 here.

The Department of Revenue added that some individuals who qualify for the Unified Tax Credit for the Elderly (Form SC-40) may also be able to claim the Automatic Taxpayer Refund if they meet certain requirements.