INDIANAPOLIS – It’s turning out to be a big week for Indiana’s Automatic Taxpayer Refund.

The second round of refunds is already hitting bank accounts for some Hoosiers after the Indiana Department of Revenue said the payments would begin in “late August.” Lawmakers approved the $200 refunds during the special session.

The payments were the centerpiece of Gov. Eric Holcomb’s inflation relief plan. The governor originally proposed $225, but lawmakers settled on $200 after negotiations between the House and Senate. Both chambers had proposed different approaches for inflation relief.

The majority of taxpayers will likely receive their money via direct deposit. Individual taxpayers will get $200 while married couples filing jointly will get $400.

The $200 payments are coming from the state’s larger-than-expected surplus. Holcomb wanted to return about $1 billion to Hoosiers as consumers struggle with inflation and high gas prices.

Some Hoosiers already received an initial payment of $125 from a separate Automatic Taxpayer Refund. State law triggered the refund after the surplus exceeded projections. Half the surplus went back to taxpayers while the other half went toward teacher pensions.

The original $125 payments started going out in May and have continued through August. In most cases, Hoosiers who received their $125 via direct deposit will receive the $200 via the same method.

Taxpayers who didn’t provide the state with direct deposit information while filing their tax returns will receive a check instead. The Auditor of State’s Office is handling the checks.

Checks were originally due out in July, but a paper shortage delayed them until August. As a result, the checks will include both the initial $125 refund and the $200 approved during the special session. Individual taxpayers will get $325 while couples filing jointly will receive $650.

Auditor Tera Klutz said the state began printing checks this week. The first checks should arrive in time for the weekend.

The state can print 50,000 checks a day and has about 1.7 million to send. Klutz said the state aims to have all checks printed and mailed by early October.

Some taxpayers who weren’t eligible for the initial $125 will qualify for the $200. Instead of a direct payment, however, they’ll receive a $200 tax credit when filing a tax return next year.

To receive the $200 credit, taxpayers must have received Social Security benefits in 2022 and must not be claimed as a dependent on a 2022 Indiana income tax return, according to DOR.

The state is asking Hoosiers with questions about their payment status to wait until Nov. 1.