Americans in Massachusetts have just one day left to become eligible for the state's annual direct payment.
Massachusetts is handing back $2.941 billion to taxpayers as part of the state's 62F Taxpayer Refunds, which requires excess tax revenue that exceeds the annual tax revenue cap to be returned to taxpayers every year.
Distributions for the refunds already began last November, but residents could still qualify if they file their 2021 tax returns by Friday. Those who file by September 15, should receive their payments next month. The size of the refund can be calculated on the state's estimator here.
There are several states that offer rebates. Last year, those 18 states included Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, New Mexico, New York, Oregon, Rhode Island, South Carolina and Virginia, according to the Tax Foundation.
In Massachusetts, eligible taxpayers qualified for a credit valued at 14.0312 percent of their Massachusetts personal income tax liability for the 2021 tax year. It's the first time the state has triggered the Chapter 62F law since 1987.
"This percentage was finalized by the Department of Revenue after the 2021 individual tax return filing extension deadline of October 17, 2022," the state's website reads. "Please note that credits may be reduced due to refund intercepts, including for unpaid tax liability, unpaid child support, and certain other debts."
The refunds are distributed automatically through direct deposit or as a check in the mail.
State lawmakers have recently proposed changes to the Massachusetts law, which was approved by voters in 1986. State House leadership has pushed for all taxpayers to get back the same amount, rather than varying amounts based on income taxes.
"Currently, the credit is applied to the personal income tax liability of all taxpayers on a proportional basis, resulting in higher credits for those who paid more in taxes," Massachusetts House Speaker Ron Mariano said in an April statement. "The bill proposes adjusting the credit to an equal amount per taxpayer, rather than a rebate based on a percentage of what taxpayers paid the Commonwealth."
"That whole package is based on the success of the economy," Mariano told reporters after introducing the new tax relief plan. "It only gets triggered when the economy is very, very successful, and we wanted everyone to share in that success. We felt after watching the way the checks were made out and sent out, I think the three of us all sort of agreed pretty early on that there are fairer ways to do this."
The Democratic-controlled House approved the package, which was in line with Governor Maura Healey's tax relief proposal, in an overwhelming 150-3 vote, but the state Senate did not want to include the change in the tax relief bill. A deal on the legislation has not yet been reached.
