Indiana taxpayers to see $111 credit from surplus

Back to TopCommentsE-mailPrintBookmark and Share

Indiana taxpayers will receive a $111 credit on their state income tax returns next year as the state distributes part of its budget surplus under a refund plan that Gov. Mitch Daniels pushed through the state Legislature.

Daniels announced Wednesday that the credit that will be $222 for couples filing joint returns after the state wrapped up its budget year in June with reserves reaching about $2.1 billion.

About $360 million will go toward the tax credits, with another $360 million to the state's pension liabilities for teachers and many state employees, according to the governor's office.

The tax credit will come off of what Hoosiers owe on their 2012 state tax returns, which the governor's office said typically averages about $850 for each taxpayer.

Daniels said some 335,000 people are expected to receive state tax refunds next year than would have without the plan to return the state surplus.

"We thought a tax refund would be more meaningful for low-income to moderate-income people," Daniels said.

Critics argue that Daniels created the reserves — amounting to about 15 percent of the state's budget — by cutting millions of dollars in funding for public schools, the child welfare agency and other important services.

House Minority Leader Scott Pelath, D-Michigan City, said the money going to what he called a modest tax refund could better be spent investing in better roads, infrastructure and health care around the state.

"While a saccharin tax refund is nice, it's not what's going to move Indiana forward," Pelath said.

The state's cash reserves accrued because of three major factors: improved tax collections by the state as it continues to crawl out of the recession, a series of cuts to state agencies made over the last few years and a tax error resulting in the state discovering $320 million in a tax-collection account.

The tax credit kicked in because the state's reserves topped 10 percent of its planned spending for the year. But state lawmakers earlier this year increased that trigger to 12.5 percent of state spending for future refunds.

"Better that these dollars remain in the pocket of the people who earned them than burn a hole in the pocket of government," Daniels said.


  • pay my bill online
    I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! Keep up the good work. how to pay my bills online
  • Indiana pays to punish out of state drunk
    In 1997, while riding through the backwoods of Indiana, a 20 year old Tennessee boy was pulled over by the Boone County Sheriff’s department and arrested for an OWI without bodily injury. Miles away from home, he faced and lost a Jury Trial and was sentenced to 3 years suspended and placed on probation. Upon his release, he returned home rather than living on the streets in Indiana. Fast forward 3 years and in 2000 the boy was again arrested for DUI in Tennessee and waited extradition to Indiana for his violation of probation warrant. Indiana failed to extradite. 10 years later, in the spring of 2010, he was again arrested for a DUI and served out his time in a Tennessee County jail, upon his release he was extradited to Indiana. His probation was revoked and he was sentenced to serve out the remainder of his sentence in an Indiana IDOC facility. After serving 14 months and attending 2 IDOC programs, he was paroled on Interstate Compact and was allowed to return to his home state of Tennessee in August 2011. In the fall of 2011 he was again arrested for a DUI and after serving a year in a Tennessee County jail he was once again extradited to Indiana. His parole was revoked, October 2013 and was sentenced to the remainder of his 3 year sentence. To date, the indigent inmate has cost the taxpayers of Indiana, $48,634 for housing, $3400 in pauper based court motions and lawyer fees, $1200 in an appeals case, $1800 in extradition costs, $2100 in IDOC program fees and plans, probation and parole costs, and plans to further incur taxpayers paying for additional filing of further motions both in the State and Supreme Courts. The now 36 year old inmate, IDOC #223275 sits in the Putnamville Correctional Facility to wait out his time until he is again released in May 2014. Does incarceration have any impact on the root cause of his alcohol addiction? Do Indiana taxpayers not mind that this inmate has racked up to date $57,134? For the amount the taxpayers have paid to “punish” this inmate, the citizens of Indiana, not Tennessee, could have used that money to fund 78 after school programs for High Risk students or 28 new playgrounds. To put this in perspective, there are approximately 7 low medium security prisons in Indiana. Over a half of the population are serving out Felony D sentences. Out of 27,000 inmates housed in Indiana Prisons, 15,000 are serving out Felony D sentences. The total cost to house these inmates per year comes to $308,461,500 or 15,423 new school playgrounds or the ability to provide 421,395 high school students with after school programs. During sentencing of our Tennessee boy, Judge McClure, Boone County Superior Court II stated in transcript during sentencing “I’m not concerned about the taxpayer’s money…” are you?
  • can't fix stupid
    you don't get this refund if your 2011 tax return was one day late - even if you owed nothing. Who's idea was that? nonsense!!
    First off, if it was a democrate gov you would be singing praises, in fact if it was a democrate gov, I doubt you would receive this auto refund. Just petty complainers posting. High five Mitch. Remember can't make dems happy Best wishes in your new career.
  • which line does it go on
    Can anyone tell me which line you would put this credit on...on the IN tax forms?
  • Which Line to put credit on
    Can someone tell me which line on the IN Tax forms you would add this $222 - Joint tax credit?
  • manual edit for the credit
    I am betting that whoever did the return did not explore the Automatic Taxpayer Refund credit. On many programs you had to be aware of it and edit it yourself. Not like other credits that the software automatically looks for. The only other reason would have been she did not file taxes last year at all or if she did not by the deadline. Otherwise, all taxpayers were entitled to it.
  • State Surplus
    Does anyone know why a person wouldn't be eligible for this? We did my grandma's taxes and she didn't get it.
    • Take Your $111
      Yes the government over taxed us as usual. But guess what we are getting $111.... Yes the way it works doesn't make sense how we all just get $111 but guess what I can use the extra $111 right now. I can use it for credit card debt, home repairs, paying down the mortgage, or maybe just take the wife out for a needed night away from home. The government will continue to tax and overtax but in the grand scheme of things our state actually has a surplus which is a good thing. We could live across the boarder in Illinois and be way in the hole. I say lets stop wasting our breath with how the system should work when they don't care what you think anyway. Just be glad we are getting an extra hundred bucks which I am sure some of the readers on this post can really use. God Bless the United States Of America!
      We are overtaxed and now Mitch gets to decide who gets our money that he should not have to begin with. We are overtaxed THANKS MITCH
      Crooks in state government. The refund like Hoops1012 said she be a percentage of what you paid in for all these years that Mitch and his cronies failed to properly account for receipts. So accumulate all receipts for the years we ran an outrageous SURPLUS. Place in the numerator the taxpayers accumulated contribution (I.e. tax payment) then refund the money pro-rata. This is a basic business concept taught at every university in the state (including Purdue).
    • Energy Development
      I'd rather the State combine the $360M allocation for tax credits with a reappropriation of subsidy funding for wind/solar/non-baseload energy and put it all into an R&D fund in support of a Liquid Floride Thorium Reactor project to clear any hurdles to getting the first modern MSR power plant in the US. Clean, Safe, cheap power for generations using domestic fuel resources.
    • State Tax Refund
      The State can't refund tax money correctly. The credit should be for a percentage of the amount that you paid for 2011, not a flat amount for each taxpayer.
    • Why
      So it's more important to use the surplus to buy future votes than to use it to fix roads and infrastructure.

      Post a comment to this story

      We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
      You are legally responsible for what you post and your anonymity is not guaranteed.
      Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
      No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
      We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

      Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

      Sponsored by

      facebook - twitter on Facebook & Twitter

      Follow on TwitterFollow IBJ on Facebook:
      Follow on TwitterFollow IBJ's Tweets on these topics:
      Subscribe to IBJ
      1. I think the poster was being sarcastic and only posting or making fun of what is usually posted on here about anything being built in BR or d'town for that matter.

      2. Great news IRL fans: TURBO the IMS sanctioned movie about slugs running the Indy 500 has caught the Securities and Exchange Commission because Dreamworks had to take a $132MILLION write down...because the movie was such a flop. See, the Indy/IMS magic soiled another pair of drawers. Bwahahahahahaha! How's CARTOWN doing? HAHAHAHA...Indy is for losers.

      3. So disappointed in WIBC. This is the last straw to lose a good local morning program. I used to be able to rely on WIBC to give me good local information, news, weather and traffic on my 45 minute commute.Two incidents when I needed local, accurate information regarding severe weather were the first signs I could not now rely on WIBC. I work weekend 12 hour nights for a downtown hospital. This past winter when we had the worst snowfall in my 50 years of life, I came home on a Sunday morning, went to sleep (because I was to go back in Sunday night for another 12 hour shift), and woke up around 1 p.m. to a house with no electricity. I keep an old battery powered radio around and turned on WIBC to see what was going on with the winter storm and the roads and the power outage. Sigh. Only policital stuff. Not even a break in to update on the winter storm warning. The second weather incident occurred when I was driving home during a severe thunderstorm a few months ago. I had already gotten a call from my husband that a tornado warning was just southwest of where I had been. I turned to WIBC to find out what direction the storm was headed so I could figure out a route home, only to find Rush on the air, and again, no breaking away from this stupidity to give me information. Thank God for my phone, which gave me the warning that I was driving in an area where a tornado was seen. Thanks for nothing WIBC. Good luck to you, Steve! We need more of you and not the politics of hatred that WIBC wants to shove at us. Good thing I have Satellite radio.

      4. I read the retail roundup article and tried Burritos and Beers tonight. I'm glad I did, for the food was great. Fresh authentic Mexican food. Great seasoning on the carne asada. A must try!!! Thanks for sharing.

      5. John, unfortunately CTRWD wants to put the tank(s) right next to a nature preserve and at the southern entrance to Carmel off of Keystone. Not exactly the kind of message you want to send to residents and visitors (come see our tanks as you enter our city and we build stuff in nature preserves...