Massachusetts to Return $2.941 Billion in Taxpayer Refunds

The Baker-Polito Administration recently announced that $2.941 billion in excess tax revenue will be returned to Massachusetts taxpayers.

Background

In this past fiscal year, Massachusetts tax revenue collections exceeded the annual tax revenue cap set by Chapter 62F of the Massachusetts General Laws by $2.941 billion. Chapter 62F requires that when tax revenue collections in a given fiscal year exceed an annual tax revenue cap, the excess revenue is returned to taxpayers.

According to the Mass.gov announcement, “eligible taxpayers will receive a credit in the form of a refund of approximately 13% of their Massachusetts personal income tax liability for Tax Year 2021. This percentage is a preliminary estimate and will be finalized in late October, after the 2021 tax return filing extension deadline of October 17, 2022. Please also note that credits may be reduced due to refund intercepts, including for unpaid tax liability, unpaid child support, and certain other debts.”

Eligibility

The announcement also shared details on eligibility, “In order to be eligible, you must have filed a 2021 state tax return on or before October 17, 2022. If you are eligible for a refund, you will receive it automatically as a check sent through the mail or through direct deposit.

The distribution of refunds is expected to begin in November 2022. No action is needed to receive your refund. More specific information about timing for refunds will be shared closer to that time.”

Refund Calculator and FAQ

LGA will continue to follow details on the 62F refunds and share pertinent information with you.

Mass.gov has also released a refund calculator to estimate refunds and an FAQ for more information. You can access both by clicking below.

Refund Calculator and FAQ