Massachusetts Filers: You’re Getting a Tax Refund, but You Must Act Quickly

Thanks to a little-remembered 1986 law, anyone who pays Massachusetts personal income for the 2021 tax year may be eligible for a significant tax refund. Under the law, the refund is triggered when total state tax revenues in a tax year exceed an annual cap related to wage and salary growth. The Massachusetts Department of Revenue has certified that the cap was exceeded in the last fiscal year, resulting in total rebates of $2.9 billion, but you must act fast to obtain your refund. See below for answers on how you can get your refund:

Who is eligible for a tax refund?

Anyone who has paid or pays 2021 personal income taxes in Massachusetts is eligible. Taxpayers include both resident and nonresident filers, pass-through entity composite return participants, and fiduciary filers.

How much will my refund be?

It is estimated that taxpayers will receive a refund of 13% of their 2021 Massachusetts tax liability. The refund amounts will be finalized in late October after the 2021 filing extension due date ends.

Will I get a refund even if I received a Massachusetts refund with the 2021 return?

Yes, if your state refund was a result of overpayments, such an income tax refund will not impact your eligibility to obtain additional refunds under this law. The only offsets of the refund are unpaid tax liabilities, unpaid child support and certain other debts.

What do I have to do to get my refund?

The only required action is to ensure that your 2021 tax return is filed on or before October 17, 2022, even if you did not file an extension request.

When should I expect my refund?

Refunds are targeted to be direct deposited or mailed beginning in November 2022.

For more information about obtaining your Massachusetts tax rebate or calculating your anticipated refund, please contact Alan Goldenberg, Principal and Leader of the State and Local Taxation and Tax Controversy groups, or your Anchin Relationship Partner.