Tax Rebate: New Bag Of $2.9 Billion For Refunds

After doing an analysis of data, Massachusetts' state auditor Suzanne Bump concluded that the state's total net tax revenues were higher than what the law permits.

While the state's tax collection is set at $38.87 billion by law, Massachusetts achieved net tax receipts of almost $42 billion for the fiscal year ending June 30, 2022.

As a result of this, an additional $2.9 billion will be returned to taxpayers. Chapter 62F, the law that caps Massachusetts' tax collections, was enacted in 1986.

It has only ever resulted in rebates for Massachusetts residents once, in 1987, when the state returned 25 cents to each taxpayer.

The total amount owing to Massachusetts in 2021, net of any credits and before withholding and estimated taxes, is as follows.

Massachusetts taxpayers will benefit

An average taxpayer will receive back around 13 percent of what they paid in personal income taxes in 2021.

Refund eligibility is limited to those who paid Massachusetts personal income taxes in the 2021 tax year and filed a 2021 state tax return by October 17, 2022, or earlier.

According to Massachusetts, an individual who paid $10,000 in income taxes the previous year should expect a return of $1,300.

The exact percentage will be made public in late October, following the October 17 deadline for submitting an extension for the 2021 tax return.

If you are eligible for a refund, you don't need to do anything more to get the refund.