Alabamaâs $150 tax rebate: When will you get your money? Who qualifies?
For Alabamians, the check will soon be in the mail. Or, more likely, in your bank account via direct deposit.
The state budget signed last week by Gov. Kay Ivey includes a one-time tax rebate of up to $300. The rebate checks will go out this fall.
“Thanks to the work of the Alabama Legislature, we continue making these wise investments while paying down debts, adding to our savings and returning the working people of Alabama’s money back to them through tax rebate,” Ivey said in a press release.
Here’s what you need to know:
How much are the tax rebates?
The tax rebate will provide $150 to individuals and $300 for couples filing jointly
Who will receive the tax rebates?
The rebates will go to taxpayers who filed a state income tax return for 2021 on or before Oct. 17, 2022.
Who isn’t eligible?
People who don’t file a return or who are considered a dependent for another taxpayer in 2021 aren’t eligible.
When will the checks be issued?
The Alabama Department of Revenue will start issuing the checks on Nov. 30. For those who use direct deposit for their tax refunds, the rebates will go to their checking account. If there’s no address on file, the refund will be issued via check.
Will this refund be issued every year?
No. The bill signed by Ivey stipulates it’s a one-time payment. Any future rebates would require additional legislation.
Will the state tax me on the refund?
No, you won’t have to pay income tax on the rebate money.
How much will the refunds cost Alabama and where is the money coming from?
The rebates will cost the state about $393 million. The money will come from a $2.8 billion surplus in the Education Trust Fund and, according to the bill, is designed to offset grocery taxes residents paid through the year. In a separate bill, Alabama cut its grocery tax to 3% but that won’t go into effect until Sept. 1.