The first checks and direct deposits from $3 billion in excess tax revenue started going out to Massachusetts taxpayers on Tuesday when the calendar officially changed to November. But if you didn't get yours yet, there's no need for concern.
About 3 million people will get one of those refunds, but to qualify for a refund right now, you must have filed a 2021 state tax return on or before Oct. 17 of this year. This is only the second time this has happened, since the law mandating it passed in 1986.
It's called Chapter 62F, and it requires the state Department of Revenue to issue a credit to taxpayers if the total tax revenues exceeds an annual cap that's tied to wage and salary growth.
Here's what you need to know:
What is Chapter 62F?
Chapter 62F is a Massachusetts General Law that requires the state Department of Revenue to issue a credit to taxpayers if total tax revenues in a given fiscal year exceed an annual cap tied to wage and salary growth in the Commonwealth.
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. The administration said eligible taxpayers will receive a credit in the form of a refund that is approximately 14% of their Massachusetts Tax Year 2021 personal income tax liability.
As an example, a person who made $50,000 last year, and paid the state back $2,500, could get about $350 back.
Credits are subject to offsets, state officials said, including for unpaid tax liability, unpaid child support and certain other debts.
Who is eligible for a tax rebate?
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.
Please note that:
- Both resident and non-resident filers are eligible
- Non-residents on whose behalf a partnership files on a composite basis are eligible
- Fiduciary filers (trusts and estates) are eligible
How and 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 began on Tuesday, Nov. 1.
Approximately 500,000 refunds were expected to be distributed during the first week. About 1 million refunds will be distributed weekly thereafter until all eligible refunds have been distributed.
No action is needed to receive your refund.
What if I haven't recieved my refund yet?
Refunds will not go out in a particular predictable order, so if you haven't received yours yet, don't worry. Eligible taxpayers who have already filed their 2021 tax return and had a tax liability will automatically receive their refund by Dec. 15.
Direct deposits will be labetleed "MASTTAXRFD," and refunds mailed as checks will include several sentences on the check explaining Chapter 62F and why the recipient is receiving the refund.
Massachusetts tax refund calculator
The Baker administration also set up a website, www.mass.gov/62frefunds, where you can get a preliminary estimate of your refund. A call center is also now available at 877-677-9727 to answer questions about the Chapter 62F taxpayer refunds. It is open Monday through Friday, from 9 a.m. to 4 p.m.
And what if I haven't filed my 2021 tax return yet?
Anyone who has not yet filed their 2021 tax return but do so by Sept. 15, 2023, will still be eligible to receive a refund. Those individuals, if eligible, will receive their refund automatically approximately one month after filing.
