Alabama Residents To Begin Receiving $150 Tax Rebates Now

Alabamians to start receiving tax rebates Dec. 1

Residents of Alabama are poised to receive a significant financial boost, as the state prepares to distribute one-time tax rebates of up to $300. This initiative, spearheaded by the Alabama Department of Revenue, is set to commence this Friday. The method of payment will mirror that of the 2021 tax refunds, with residents receiving either direct deposits or paper checks.

This rebate program is a substantial undertaking, involving approximately 1.9 million residents and costing the state around $393 million. The funds for these rebates are sourced from a remarkable $2.8 billion surplus in the Education Trust Fund.

To be eligible for these rebates, which amount to $150 for single filers and $300 for married couples filing jointly, taxpayers must have filed their 2021 individual income tax return by October 17, 2022. Importantly, there are no income restrictions or gradual reductions in the amount of the rebate. However, certain groups will not be eligible for this rebate, including those who did not file a 2021 state Individual Income Tax return by the specified date, non-residents of the state, estate or trust accounts, and individuals who were claimed as dependents in the 2021 tax year.

For those eligible residents who did not receive a refund for the 2021 tax year, the state will issue the rebate via a paper check sent to their current address on file with the state revenue department. Additionally, paper checks will be issued to those whose banking details have changed since their last refund or who received their 2021 refund through a tax preparer’s account.

It’s noteworthy that these payments are exempt from state taxes, ensuring that recipients can fully benefit from this financial relief. This move by the Alabama government represents a significant effort to return surplus funds to its residents, providing a timely economic stimulus.

Source: APN News

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