State details plans to return excess tax revenue to Mass. taxpayers
(WGGB/WSHM) – The Baker-Polito Administration has announced plans on how billions of dollars of excess tax revenue will be returned to Massachusetts taxpayers.
On Thursday, Mass. Auditor Suzanne Bump announced that net state tax revenues for fiscal year 2022 exceeded allowable revenues, per Massachusetts General Law Chapter 62F, by $2,941 billion dollars. In accordance with that statute, that excess amount will be returned to eligible taxpayers in proportion to personal income tax liability in Massachusetts that was incurred in the immediately preceding tax year. In this case, it’s tax year 2021.
“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,” said Mass. Govt. Charlie Baker in a statement.
The administration said that, in general, eligible taxpayers will receive a credit in the form of a refund that is approximately 13 percent of their Massachusetts tax year 2021 personal income tax liability. That percentage estimate is preliminary and will be finalized in late October.
Those who are eligible for a refund will automatically receive it as a check through the mail or direct deposit, with distributions expected to be in November 2022. To be eligible, taxpayers must have filed a 2021 state tax return on or before October 17, 2022 The credit may be reduced due to refund intercepts, including unpaid taxes, unpaid child support, and certain other debts.
More information Chapter 62F, including frequently asked questions and a refund estimator, can be found here. In addition, a call center will be available starting Tuesday, September 20. The center will be open Monday through Friday from 9 am to 4 pm and can be reached at (877) 677-9727. The state noted that the center will not be able to provide exact refund amounts, but the online estimator tool can help calculate a preliminary estimate.
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