Recently, Massachusetts announced it would be returning tax revenue back to eligible taxpayers.
Why? In this past fiscal year, Fiscal Year 2022 (FY22), Massachusetts tax revenue collections exceeded the annual tax revenue cap set by Chapter 62F of the Massachusetts General Laws by $2.941 billion. This law requires the excess revenue be returned to taxpayers in the coming months.
In general, 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.
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.
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.
You can use the estimator on the MA state website to estimate your refund based on your Tax Year 2021 income tax liability.