Massachusetts officials announced last week that $3 billion in surplus tax revenue will be returned to taxpayers.
State Auditor Suzanne Bump announced Thursday that she had certified the Baker administration's estimate of $2.94 billion in excess tax revenue that must be returned under the 1986 voter-approved law known as Chapter 62F. It's the second time the law will return money to Massachusetts residents.
The Baker administration has 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.
Here are the answers to some commonly asked questions about the program:
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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.
In general, the administration said eligible taxpayers will receive a credit in the form of a refund that is approximately 13% of their Massachusetts Tax Year 2021 personal income tax liability. However, that percentage is just a preliminary estimate and could still change before it is finalized in late October, once all 2021 tax returns have been filed.
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 refund?
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 is expected to begin in November.
No action is needed to receive your refund.
More information about how to receive your refund will become available in November, the state has said.
Will the refunds be treated as taxable income?
The refunds are not taxable as income at the state level.
All tax refunds, including the 62F refunds, are taxable at the federal level only to the extent that an individual claimed itemized deductions on their fedreal return for tax year 2021. Refund recipients who itemized on their federal returns for 2021 will receive a Form 1099-G from the Department of Revenue by Jan. 31, 2023 to use when completing their 2022 federal return.
Information from Mass.gov was included in this report.