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If the state follows the federal way of disbursing these funds to those who don’t file taxes, that means it will almost cost them more to collect the refund than it’s worth.
Since the amounts used in your state taxes rely heavily on your Federal taxes, you will have to fill out a Federal tax form to find those amounts. Then you will need to complete your state tax form (having zero tax to pay) to collect the $125. Since most tax preparers charge for completing the state taxes, you will either have to complete the form yourself, or pay to have it done.
(Of course, knowing the State of Indiana, they will probably make the $125 taxible income next filing year.)
It seems to me, there ought to be an easier way without burdening these folks further.