Alabama’s bonus tax rebates will start going out this week

Alabama’s bonus tax rebates will start going out this week

Many Alabamians will soon have a little extra money for the holidays.

The Alabama Department of Revenue will start sending the one-time tax rebates on Friday. The amount of each rebate is based on the qualified taxpayer’s status: $150 or single, head of family and married filing separately or $300 for married filing jointly.

Roughly 1.9 million Alabamians will receive a payment, according to the state.

To qualify for the rebates, taxpayers must have filed a 2021 Individual Income Tax return which ALDOR received on or before Oct. 17, 2022. Non-residents, estates or trusts or anyone who was claimed as a dependent during the 2021 tax year do not qualify.

Taxpayers can expect to receive their rebate based on how they got their 2021 tax year refund – by direct deposit or paper check. If you didn’t receive a refund in tax year 2021, you can expect a paper check.

The rebates will not be subject to Alabama income taxes.

The plan will cost the state some $393 million which comes from a $2.8 billion surplus in the Education Trust Fund.