If you live in Massachusetts, some extra cash could be coming your way very soon. The state has started sending about $3 billion in excess tax revenue back to taxpayers in the form of checks and direct deposits. These tax refund checks from Massachusetts are the result of a voter-approved tax cap law known as Chapter 62F.
Chapter 62F: What Is It?
Chapter 62F is a Massachusetts General Law that requires the state’s Department of Revenue to send a refund to the taxpayers if the total tax revenue for a fiscal year is more than the annual cap related to the wage and salary growth in the Commonwealth.
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This is only the second time that the payment has been triggered by this law. The first time taxpayers got the payment under Chapter 62F was in 1987. This time, around 3 million taxpayers are estimated to get tax refund checks from Massachusetts in the form of a mailed check or a direct deposit.
The state started sending tax refund payments to eligible taxpayers today, i.e. November 1. The whole process of sending the payments is expected to take about six weeks, with the final payment going out by December 15. It is estimated that the state will issue about 500,000 refunds in the first week and one million refunds thereafter.
In a press release last week, the administration informed that eligible taxpayers would get a refund in the form of a credit that will be about 14% of their Massachusetts Tax Year 2021 personal income tax liability.
Taxpayers can visit www.mass.gov/62frefunds to estimate the amount of refund that they could be eligible for.
A point to note is that the refund amount is subject to offsets for certain unpaid liability and debts, such as unpaid tax liability, unpaid child support and certain other debts.
Tax Refund Checks From Massachusetts: Who Will Get Them?
To be considered for the tax refund checks from Massachusetts, residents must have filed their 2021 state tax return on or before Oct. 17, 2022. Both resident and non-resident filers are eligible, as well as non-residents on whose behalf a partnership files on a composite basis. Fiduciary filers (trusts and estates) are eligible for the refund as well.
Taxpayers don’t need to take any action to get the payment. The state will send them the refund automatically if they are eligible. The refund amount is not taxable as income at the state level.
Those who haven’t yet filed their 2021 tax return may still be able to claim the payment if they file by Sept. 15, 2023. Such taxpayers, if eligible, will get the refund amount about a month after filing their return.
For more information on the tax refund checks from Massachusetts, you can call 877-677-9727 (Monday through Friday, from 9 a.m. to 4 p.m.).
Image and article originally from www.valuewalk.com. Read the original article here.