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DOR > Individual Income Taxes > Tax Credits > Automatic Taxpayer Refund Credit Automatic Taxpayer Refund Credit

The Indiana General Assembly passed legislation providing for an Automatic Taxpayer Refund (ATR) credit for tax year 2012.

You may be eligible for the credit if you meet all three of the following qualifications. You must:

  • have timely filed (including extensions) a full-year Indiana resident income tax return for tax year 2011
  • timely file (including extensions) a full-year resident Indiana income tax return for tax year 2012
  • owe some tax to the state for 2012 (have a modified state tax liability)*

The refundable credit that has been authorized for 2012 is $111 per eligible taxpayer ($222 for an eligible married couple filing a joint return). Dependents are not eligible to claim the ATR unless filing their own state tax return.

For more information about this credit, including how to figure it, see the instructions in the IT-40, IT-40EZ or IT-40PNR instruction booklets.

*Example 1. Brandon has $22,000 wage income and claims a $1,000 exemption. His state tax due before credits is $714 ($22,000 - $1,000 = $21,000 X .034 state tax rate = $714 modified state tax liability). His state withholding credit is $800. Even though Brandon had more than $714 withheld, he still qualifies for the $111 ATR credit. With the $111 ATR credit and his $86 overpayment of taxes, his total refund is $197.

*Example 2. Olivia has $742 wage income and claims a $1,000 exemption. Her state tax due before credits is $0 ($742 - $1,000 = -$258 = no modified state tax liability). Her withholding credit is $25. Since she doesn’t have a modified state tax liability, she is not eligible for the ATR credit. Olivia’s refund is $25.

To download frequently asked questions about the ATR credit, click here.

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