What is the indiana state tax liability for 2012? Or the broken down definition.

This is a question i am being asked:

Hoosiers Automatic Refund Credit
Indiana offers a new automatic refund credit if you or your spouse meet the following criteria:

Must have 
timely filed a 2011 Indiana return as a full-year resident
Must timely file a full-year resident return for 2012
Must have a state tax liability for 2012

I am unsure what and if I qualify because of state tax liability for 2012. Any help will be appreciated
  • do i qualify because of state tax liability  don't understand
  • I am pretty sure I dont qualify for this because I dont have a state tax liability for 2012 but TurboTax keeps adjusting my return and adding the $111 Automatic Taxpayer Refund credit. Not sure what I need to do to fix this.
  • do u have to be married?  it states if you or your spouse meet the criteria
  • It tells me that I don't meet the requirements, but I'm positive I do.
  • I am still not understanding this because as someone mentioned above I don't believe I qualify for this yet it just leaves the $111 in my refund amount. I do not have a stated tax liability and I don't understand how cancel it out. Any information that could help me get rid of this would be appreciated.
Most taxpayers are eligible for the credit, but there are three qualifications that must be met. An eligible taxpayer must have a

    2011 timely filed full-year resident return
    2012 timely filed full-year resident return
    2012 modified state tax liability*

*A modified state tax liability is the:

    State tax due (state taxable income X .034)
    Minus all credits except for
        withholding (state and county)
        estimated tax/extension payment
        Schedule 6/Schedule G lines 1 - 3
        (local offset credits)

The remaining balance (the modified state tax liability) must be $1 or more.

The refundable credit that has been authorized for 2012 is $111 per eligible taxpayer ($222 for an eligible married couple filing a joint return).

Go here for the information, the 3rd item down.
The way I understand this credit
1. Anyone who in 2011 was a full-year resident of Indiana and filed their Indiana taxes on time
2. Anyone who in 2012 was a full-time resident of Indiana and will file their Indiana taxes on timer
3. Plus you had earned income and paid Indiana taxes in the amount of at least $1.00 after all credits.  You do NOT have to OWE you just need to have paid taxes in the state of Indiana.
Meet all 3 of those criteria and you qualify for the credit.  If you are single $111.00 if you are married $111 x 2 = $222.00.
Hope this helps.

  • define paid $1.00 or more. Because last year I got money back from the state.
  • Yes legal talk, I don't know why they just couldn't say; if during the year you worked and paid taxes to the State of Indiana in an amount greater than $1.00 and filed on time you meet the requirement.  Apparently there must be some loop hole they are trying to cover, other than Not working and Not paying any taxes.

    If during the year you paid $1.00 more in Indiana State taxes and filed your taxes on time you meet the requirement.  Since you got money back that means you paid taxes to the state and had a refund coming so you paid $1.00 or more in taxes.  Indiana does not pay refunds of $1.00 or less.  It does not mean you owed additional taxes only that during the year you paid taxes to the State of Indiana in excess of $1.00 or more.
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