Massachusetts residents will receive a few hundred or thousands of extra dollars in their bank accounts from the government during the first half of December.
After the state exceeded the annual revenue threshold set by an earlier law this year, Massachusetts Gov. Charlie Baker is now starting to deliver rebates to about three million taxpayers.
The automated rewards are being distributed to those who filed 2021 tax forms between now and December 15 in a rolling, seemingly random manner.
What to Expect
According to The US Sun’s report, the rebate will amount to roughly 0.7% of residents’ total taxable income or approximately 14% of what residents paid in state income tax. On the website of the Massachusetts government, details and calculations are available.
Eligible taxpayers will be given a credit equal to 14.0312% of their Massachusetts personal income tax obligation for the Tax Year 2021 in the form of a refund.
The Department of Revenue decided on this percentage following the October 17, 2022, deadline for filing extensions for individual tax returns for 2021. Please be aware that credits for unpaid taxes, unpaid child support, and certain other debts may be reduced due to refund intercepts.
Direct deposit will be used to send money or a tax refund to their bank accounts with the designation “MASTTAXRFD.” If not, the neighborhood council will mail them a payment.
According to reports from WBUR, 500,000 payments will be made this week, and roughly a million will be made each week.
Residents who still need to submit their 2021 tax returns may still be eligible for a refund if they are offered by September 15, 2023. A month after filing, eligible taxpayers should automatically receive a refund.
The size of the rebates is unbounded, and according to the law’s terms, the wealthier residents will receive a more significant rebate.
Some legislative leaders may modify the revenue cap rule to make it less “regressive” further forward, but not before the current round of payments. They also implied that it might influence the contents of a tax cut package that would reach Baker’s desk as early as this month, reports say.