Alabama is set to start issuing one-time tax rebates of up to $300 this week. Payments will be sent to some 1.9 million state residents with some noticeable exceptions on who qualifies.

To qualify for the rebates – $150 for single filers or $300 for married couples filing jointly – taxpayers must have filed a 2021 individual income tax return with the Alabama Department of Revenue on or before Oct. 17, 2022. There are no income limits or phase-outs for payments, however, there are some who will not receive a tax rebate, including:

• Those who did not file a 2021 state Individual Income Tax return by Oct. 17, 2022
• Are a non-resident of the state
• Estate or trust accounts
• Are claimed as a dependent during the 2021 tax year.

If you do qualify, there are no special steps you have to take to claim your rebate. ALDOR will start issuing the payments on Dec. 1 by direct deposit or paper check, depending on how you received your 2021 tax refund. Direct deposits will be made to the same bank account that was used to issue your 2021 tax refund.

If you did not receive a 2021 tax year refund, you will get your rebate by paper check. Paper checks will also be issued to those whose banking information has changed or who received a 2021 refund using a tax preparer’s account.

Paper checks will be mailed to the current address on file with ALDOR depending on your recent income tax filing. If you need to update your address, you can do so before 5 p.m. on Nov. 29 at your My Alabama Taxes account. Click here to sign up for a My Alabama Taxes account. Click here to update your address in your My Alabama Taxes account.

The rebates will not be subject to Alabama income taxes. Rebates will cost the state some $393 million which comes from a $2.8 billion surplus in the Education Trust Fund.