Massachusetts officials announced this week that $3 billion in surplus tax revenue will be returned to taxpayers.
Now we're learning more about how and when that will happen.
State Auditor Suzanne Bump announced Thursday that she had certified the Baker administration's estimate of $2.94 billion in excess tax revenue that must be returned under the 1986 voter-approved law known as Chapter 62F. It's the second time the law will return money to Massachusetts residents.
The Baker administration released details Friday on how those refunds will work.
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How much will my tax refund be?
The money will be returned to eligible taxpayers by the state Department of Revenue in proportion to their personal income tax liability in Massachusetts incurred in the immediately preceding taxable year -- Tax Year 2021. In general, the administration said eligible taxpayers will receive a credit in the form of a refund that is approximately 13% of their Massachusetts Tax Year 2021 personal income tax liability. However, that percentage is just a preliminary estimate and could still change before it is finalized in late October, once all 2021 tax returns have been filed.
Who is eligible for a tax refund?
To be eligible for a refund, the administration said individuals must have filed a 2021 state tax return on or before Oct. 17, 2022. An individual's credit may be reduced due to refund intercepts, including for unpaid taxes, unpaid child support and certain other debts.
When will I get my refund?
Individuals eligible for a refund will receive it automatically as a check sent through the mail or by direct deposit. The distribution of refunds is expected to begin in November 2022.
“Stronger-than expected state tax revenues have led to a major surplus for Fiscal Year 2022, and we are pleased to be able to return nearly $3 billion in excess revenue to the taxpayers,” Gov. Charlie Baker said in a statement. “With families facing continued pressure from high prices and inflation, these returns will provide some 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 into our economy, communities and families.”
What if I have questions?
Additional information about Chapter 62F taxpayer refunds, including Frequently Asked Questions and a refund estimator, is available at www.mass.gov/62frefunds. This website will be updated as additional information becomes available in the coming months. A call center will also be available to answer questions about 62F refunds beginning Sept. 20, at 877-677-9727 and will be open Monday through Friday, 9 a.m. to 4 p.m. The call center will not be able to provide exact refund amounts but the estimator on the FAQ page can help individuals calculate a preliminary estimate.