- Office of Consumer Affairs and Business Regulation
Last month the Baker Administration announced that eligible Massachusetts taxpayers will receive a tax rebate connected to their 2021 filings. For the second time since 1987, the Commonwealth experienced a surplus of almost $3 billion. Therefore, under Chapter 62F any money that exceeded allowable revenue must be returned to those who filed. Individuals should start seeing funds by check or direct deposit in November.
In anticipation of the tax rebates, the Office of Consumer Affairs and Business Regulation compiled details on what to expect.
- Why are taxpayers getting a tax rebate this year? Massachusetts law, Chapter 62F, requires the state to return money to taxpayers when tax revenue collected is over a certain amount determined by the year’s economic growth. The Auditor’s Office was required to conduct an audit to determine whether net state tax revenues for the fiscal year exceeded allowable state tax revenues. The findings reported that revenue did indeed surpass the allowable amount and taxpayers were entitled to a refund from the 2021 tax year.
- How do you know the amount of your return? The return will be proportionate to the amount of taxes each individual owed in the previous tax year. Generally, that means, eligible taxpayers should receive about 13% of what they owed in taxes in 2021, though that is an estimate and will be finalized before any returns come out.
- How do you know if you’re eligible to receive a tax rebate? In order to be qualified for the rebate, state tax returns must have been filed by October 17, 2022. Any unpaid taxes, child support, or other types of debt may impact the amount of the return. Any money deducted from the rebate will be applied to any outstanding debts, and the remaining amount distributed to the taxpayer.
- How will you receive your tax rebate funds? Tax refunds will be sent to consumers by check in the mail to the address listed on your 2021 filing, or via direct deposit to the account provided on your tax return.
- Will anyone call you about the tax rebate program? The Massachusetts state government will not call or email you about claiming the tax rebate. The only communication you may receive about this return will be reminders about key dates or deadlines. If you receive a phone call or other communication seeking payment or offering to expedite the process, it is a scam.
For more information about the tax rebate, visit the Governor’s Office official press release: Baker-Polito Administration Announces Details for Return of $2.941 Billion in Excess Tax Revenue to Taxpayers | Mass.gov. You can check out the audit that made the tax return happen at: Determination of Whether Net State Tax Revenues Exceeded Allowable State Tax Revenues -- Fiscal Year 2022 | Mass.gov.
If you have questions about the Chapter 62F refund, you can reach a call center dedicated to answering there questions at 877-677-9727. The Administration also compiled a of frequently asked questions available here: www.mass.gov/62frefunds