There will be many Hoosiers who will be receiving a surprising amount of $125 from the IRS with the start of this month of May 2022 and onwards. If you are yet to know the reason and thinking why did I get $125 from the IRS? then you will be thrilled after you get to know the fact. If you already know why your account has an extra deposit then all good but if you don’t, then you will be getting the answer here.

The IRS will be distributing the total estimated amount of $545 million to the Hoosiers, which is the surplus left from the last fiscal year. Each Hoosier taxpayer will be getting $125 and those married pairs who have filed their IRS return jointly will be receiving a total of $250.

Why are you Getting a Surprise $125 Refund and What is a $125 Indiana Refund?

In the past few years, the Indiana revenue department has reported an exceptionally better financial report from the state and of course, the credits go to the hardworking taxpayers who have managed to maintain a proper tax report for themselves and hence, which overall help with the state tax department. So as for the past fiscal year of 2021, the tax amount paid by the taxpayers of Indiana is higher than expected which is also caused by employers withholding tax from the employee’s paycheck.

In the past few years, the situation was not much good because of covid 19, but yet the tax payment was well maintained and received, so now it’s time for the taxpayers to get the extra amount of revenue tax from the government back into their pocket.

According to the state revenue guidelines, if the state reserve is 12.5% or higher than the general fund grants then some of the extra amounts will be distributed to the taxpayers. And for the fiscal year, 2021, the state nearly had about $4 billion in its reserve which is 23%. From this surplus, some portion was paid for the teacher pension fund, and the leftover portion of $545 will be going to the hands of the Indiana taxpayers.

In a press release from April 13, 2022, Governor Eric J. Holcomb has said,

“I’m beyond thrilled that this spring and summer we are returning money back into the hands of Hoosier taxpayers, where it belongs.” Then he continued “Our conservative fiscal leadership and pro-growth policies make this tax return possible for all Hoosier households.”

Who is Eligible for the IRS Refund and How will You be Getting It?

The $125 tax refund has already started from this month of May and will probably be completed by September of this year. The taxpayers will be receiving the IRS 125 refund in two ways, one through the direct deposit which will be from May to July, and the other method will be through sending paper checks to the taxpayers which will start right after the end of the direct deposit from July to September as estimated by the revenue department.

For eligibility, any Hoosiers who have filed for their tax returns for the years 2020 and later are eligible, and by which method they will be getting is also related to how you have filed your tax returns. If you have properly mentioned your direct account information on your 2021 tax return and also filed your tax return electronically then you will also get a faster tax refund through direct deposit.

But on the other hand, if you don’t meet the required process for the direct deposit then you will be getting the state tax refund through paper checks, and this could also happen if you have filed for an extension of time during your 2021 tax return. But whatever the reason is, even if you don’t get it now in your account, it’s not because you’re not eligible but because you will be getting it through the other method but you will have to wait for the direct deposit to get over till July and you will be getting your $125 refund afterward.

One more thing to know, if you have already received your refund after filing your tax refund for this year and thinking you haven’t gotten your $125 then you don’t have to worry, the general tax refund is totally separated from the state refund.

There is also a chance that the Hoosiers may again receive a surprise automatic tax refund in the near future as the state revenue for the fiscal year 2022 also seems to have surpassed the expectation with an excellent state financial report.