Daniels: Hoosier taxpayers to receive tax credit thanks to state surplus
Single filers may receive $111, joint filers $222
Last Updated: 380 days ago
INDIANAPOLIS - Hoosiers who file income taxes in 2013 will receive tax credits thanks to Indiana's Automatic Taxpayer Refund, Gov. Mitch Daniels announced Wednesday.
Daniels said Hoosiers who file individual returns will receive a credit of $111, and joint filers will receive a credit of $222.
"We insisted on a per capita refund for two reasons: first, maximum simplicity, as seen on the new tax form. Second, to provide the most relief to lower and middle income Hoosiers, for whom $222 may be meaningful right now," Daniels said. "Past a point of rock-solid fiscal strength, it’s better to leave this money in the pockets of those who earned it than to let it burn a hole, as it tends to do, in the pocket of government."
State officials estimate that nearly 3.2 million Hoosiers are eligible for the credit, and about 335,000 taxpayers will receive a refund in 2013 who otherwise would have owed taxes without the ATR.
The ATR kicks in whenever the state surplus reaches a certain amount. Indiana closed the last fiscal year with a surplus of $2 billion.
Democrats say the surplus came about because the state cut corners on citizens who needed help.
"We have teachers who have been let go. We have schools not able to meet basic programming needs to keep up with the testing demands. We have roads that are still crumbling and in bad shape," said Rep. Scott Pelath, D-Minority Leader.
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