MONTGOMERY, Ala. — Alabama residents will soon start receiving one-time tax rebates of up to $300, as announced by the state authorities in Montgomery.
The Alabama Department of Revenue will begin distributing payments on Friday through direct deposit or paper check, depending on how residents received their 2021 tax refund. According to al.com, approximately 1.9 million residents will receive these payments.
The state will incur an expenditure of approximately $393 million for rebates, which will be sourced from the Education Trust Fund’s surplus of $2.8 billion.
To be eligible for the rebates, taxpayers must have submitted their 2021 individual income tax return by October 17, 2022. The rebates amount to $150 for single filers and $300 for married couples filing jointly. These payments are not subject to income limits or phase-outs. However, certain individuals will not receive a tax rebate, including:
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- Those who did not file a 2021 state Individual Income Tax return by Oct. 17, 2022;
- Those who are not state residents;
- Estate or trust accounts;
- Those who claimed as a dependent during the 2021 tax year.
Residents who are eligible and did not receive a refund for the 2021 tax year will be sent a rebate in the form of a paper check. The paper checks will be mailed to the current address on file with the state revenue department. Additionally, individuals whose banking information has changed or who received a 2021 refund using a tax preparer’s account will also receive their rebate via paper check.
The payments are exempt from state taxes.
