Massachusetts taxpayers are about to get a tax rebate. That’s right. A tax rebate.
Governor Charlie Baker announced that revenue collections in Fiscal Year 2022 far exceeded the annual tax revenue cap, thereby triggering a law requiring Massachusetts to return the surplus to Massachusetts taxpayers. The rebate will be roughly 13% of each taxpayer’s 2021 tax liability and will be paid to all taxpayers who filed a 2021 income tax return by October 17, 2022, regardless of income. For example, if a married couple filed a 2021 tax return with $140,000 in taxable income and their 2021 tax liability was $7,000, they should receive an approximately $910 rebate. Your rebate may be reduced, however, if you have any unpaid tax liability or unpaid child support obligations.
The Commonwealth has established an online calculator for taxpayers to estimate their expected rebates.
Beginning in November 2022, rebates will be either automatically deposited into taxpayers’ bank accounts or a check will be mailed. The refunds will occur automatically, and no action needs to be taken in order to receive your rebate, which will be a nice stimulus to the economy just in time for the holiday season.