Tax Rebate: new bag of $2.9 billion for refunds; date and who is eligible

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State auditor Suzanne Bump determined that Massachusetts‘ net tax collections exceeded what is permitted by law after reviewing them.

While the state’s law sets the tax collection at $38.87 billion, Massachusetts earned net tax receipts of approximately $42 billion for the fiscal year ending June 30, 2022.

The extra $2.9 billion will be returned to taxpayers as a repair for this. Chapter 62F, the law that places a limit on Massachusetts’ tax receipts, was passed in 1986.

It has only ever led to rebates for Massachusetts citizens once, in 1987, when the state handed each taxpayer 25 cents back.

“That our tax cap has been dormant for over three decades until today shows that it is working exactly as it was designed to do,” said Chip Ford, executive director of Citizens for Limited Taxation, to the Boston Herald.

“Our tax cap was intended as an automatic release valve for when revenue surpluses reach an unnecessary level, especially such an extraordinary level as recently; it was meant as a check on unlimited taxation and unsustainable spending.”

Governor of Massachusetts Charlie Baker said on Friday that payments will begin to be made in November.

Your unique personal income tax obligation for the 2021 tax year will determine how much money you receive back.

Tax payers in Massachusetts will benefit

After applying any credits and before withholding and estimated taxes, this is the total amount payable to Massachusetts in 2021.

The average return to taxpayers will be equal to about 13 percent of their 2021 personal income tax payment.

According to Massachusetts, someone who paid $10,000 in income taxes last year can anticipate receiving a return of $1,300.

After the October 17 deadline for filing an extension for the 2021 tax return, the final percentage will be revealed in late October.

Every rebate is subject to offsets, such as unpaid taxes, child support obligations, or other debts.

The state has developed a refund calculator on its website to assist citizens in estimating the amount of their refund.

Every rebate is subject to offsets, such as unpaid taxes, child support obligations, or other debts.

The state has developed a refund calculator on its website to assist citizens in estimating the amount of their refund.

Anyone who paid Massachusetts personal income taxes in the 2021 tax year and submitted a 2021 state tax return by October 17, 2022, or earlier, is qualified for a refund.

You don’t have to take any additional steps to receive the money if you are entitled to a refund.



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