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Tax rebates set to go out in December

About 1.9 million state income tax rebates will start going out Alabamians starting Dec. 1.

Lawmakers and Gov. Kay Ivey earlier this year approved $150 income tax rebates for individuals and $300 rebates for married couples filing jointly. The rebates will be sent electronically or by check, depending on how filers received their refunds. 

There are about 855,000 single returns and about 690,000 returns for married couples filing jointly, the Alabama Department of Revenue told Alabama Daily News. The rest are taxpayers who are married but filing separately or heads of family.

“From the very beginning, it has been my belief that it is the responsibility of government to be good stewards of taxpayer dollars while actively looking for ways to support citizens through tough times,” Ivey said in a recent statement. “Our country is in the midst of tough times, and Alabama families from all walks of life are unfortunately seeing that their paychecks aren’t going as far as they once did. Thanks to our unwavering commitment to fiscal responsibility, one-time tax rebates will be with our hard-working Alabamians in time for the holidays.”

State leaders in the spring had a record nearly $2.8 billion surplus in the education budget to spend. The $393 million for the rebates came from that pool of money. Ivey had originally proposed rebates of $400 and $800.

To qualify for the rebate, Alabamians had to file tax returns for 2021 by Oct. 17, 2022.

The Alabama Department of Revenue recently put a frequently asked questions page on its website.

The rebates will not be taxable for Alabama income tax purposes.

“Inflation has hit our state hard in recent years,” Senate Minority Leader Sen. Bobby Singleton, D-Greensboro, said in a recent statement. “These rebates will return some dollars back to the taxpayers and provide relief to help ease that inflationary burden.”

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