In May 2023, state lawmakers passed a plan that calls for residents to receive a tax rebate. The state has a surplus, which means rebates for millions of state taxpayers.
Starting December 1, 2023, the Alabama Department of Revenue will start issuing rebates. Details are as Follows:
- To qualify, taxpayers must have filed a 2021 Individual Income Tax return which the ALDOR would have received on or before October 17, 2022.
- Non-residents, estates or trusts, or anyone who was claimed as a dependent during the 2021 tax year do not qualify.
- Taxpayers will receive the rebates based on how they got their 2021 tax year refund - by direct deposit or paper check. If no refund was issued, taxpayers can expect a paper check.
- The rebates will not be taxable income for Alabama income tax purposes.
The amount of each rebate is based on the qualified taxpayer's filing status:
- Single, head of family, married filing separately will receive 150.00
- Married filing jointly will receive 300.00
Governor Ivey, during her 2023 State of the State Address, announced her plan to utilize Alabama's historic budget surplus to provide financial relief to working Alabama families. Ivey stated, "This is the people's money, and it's only right while acknowledging we are recording revenues far exceeding normal and sustainable levels, we give a fair share of this money directly back to the people of Alabama."
These rebates will cost the state about $393 million, which comes from a surplus of $2.8 billion in the Education Trust Fund.
For more information about the above article or other individual tax services, contact Louis Hawkins, CPA, by calling (334) 887-7022 or by leaving us a message below.
