Holiday cheer may start a little earlier than usual for those who paid Massachusetts state income tax in 2021. Because the state collected so much revenue, the law requires the government to return some of that money to taxpayers. Refund distribution started on November 1 and is expected to be complete by December 15.
Who is Eligible to Receive a Refund?
Anyone who paid personal income tax to the Commonwealth of Massachusetts for the 2021 tax year will receive a refund of 14.0312% of their tax liability for that year. This is in addition to any refund received based on the tax return.
Taxpayers will receive their bonus refund either through direct deposit or by check. However, those who owe debts for unpaid back taxes, child support, or certain other matters may have their credits reduced due to refund intercepts.
No Action Needed
Refunds will be sent automatically to all taxpayers who filed returns and who had state tax liability for the year 2021. Taxpayers don’t need to take any additional action to receive the 14% refund. Couples who filed jointly will probably see the refund issued in the primary taxpayer’s name.
Those who have not filed a return for 2021 can still receive this additional refund. To do so, they need to file their return for 2021 no later than September 15, 2023. Those who file by this date who are eligible to receive a refund will receive it automatically approximately one month after filing their return.
Why is the State Sending Out Money?
During the fiscal year, Massachusetts collected revenue in excess of the tax revenue cap established in Chapter 62F of the Massachusetts code. The statute requires the excess amount–$2.941 billion in this case—to be refunded to taxpayers.
How Much Will I Receive?
The state government has set up a Refund Estimator on the Mass.gov website. Taxpayers can answer questions and find out the amount of their expected refund.
Beware of Scams
With extra money flowing back to taxpayers, the Massachusetts government cautions the public to beware of scams. The government wants taxpayers to be aware that the Department of Revenue will not initiate contact with them to question personal or financial information via:
- Text messages
- Social media
The state has not set up a system to allow taxpayers to check on the status of their refunds. However, taxpayers may reach the Refund Call Center at 877-677-9727 if they have questions.
Direct deposit payments will appear in records as “MASTAXRFD.” If you have additional questions about the refund, you may want to consult your financial advisor or tax professional.
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