BOSTON (WWLP) – More details have been released on how 3.6 million taxpayer residents will receive their refunds from additional tax revenue.
On Thursday, the state auditor certified the fiscal year 2022. Acceptable state tax revenue for this year was approximately $38.8 billion and the state collected approximately $41.8 billion, causing a loss of more than $2.94 billion. Because of Chapter 62F, taxpayers are required to return that money.
“The stronger-than-expected state tax revenue has led to a major surplus for fiscal year 2022, and we have been able to return approximately $3 billion in additional revenue to taxpayers,” Governor Charlie Baker said. “With households facing continued pressure from high prices and inflation, these returns will provide some much-needed relief. Even with nearly $3 billion going back to taxpayers, significant state and federal resources remain, and we look forward to working with the legislature to invest this funding in our economies, communities and families. looking forward to ,
Here’s how that money will be distributed:
A total of $2.941 billion will be refunded by the Department of Revenue to eligible taxpayers in proportion to the personal income tax liability in Massachusetts for taxpayers from the previous taxable year, tax year 2021. Qualified people will receive a credit of about 13% of Massachusetts. Tax year 2021 personal income tax liability.
The percentage is a preliminary estimate and will be finalized by the state at the end of October, once all 2021 tax returns are filed. To be eligible for a refund, residents must have filed a 2021 state tax return by October 17, 2022.
It’s important to note, a resident’s credit can be reduced if they have a refund intercept that includes unpaid taxes, unpaid child support, and certain other debts. If you have filed your 2021 tax return jointly, you will get only one refund.
So when will taxpayers get this credit? Eligible residents will automatically receive a check sent through the mail or via direct deposit. Refunds are expected to start in November 2022. The refund will not be taxable as income at the state level.
“Strong economic growth across our Commonwealth, coupled with careful management of state tax dollars, has resulted in a significant surplus over the past fiscal year,” Lieutenant Governor Karen Polito said. “Over the coming months, our administration will work diligently to distribute these funds back to taxpayers, and we look forward to working with the Legislature in our state to invest additional surplus dollars into local economies.”
“While the exceptionally high tax collections we saw in FY22 are a testament to the strength and resilience of the Massachusetts economy, we are in a position to return a substantial portion of this revenue to taxpayers,” the Administration and Finance Secretary said. Michael J Heffernan. “With many feeling the stress of rising prices, these refunds will be a welcome source of relief for over 30 lakh hardworking individuals across the state, and we look forward to executing the disbursement of refunds in the coming months.” “
The state has made a Website That Can Help You Estimate Refunds you are likely to receive. A call center will also be available from September 20 at 877-677-9727. Call Center will be available from 9:00 AM to 4:00 PM from Monday to Friday