The bill, which was passed by both the state’s House and Senate on Thursday, proposes tax rebates of $150 for single filers and $300 for couples filing jointly.
Alabama residents are eagerly awaiting a tax rebate that is currently awaiting approval from Governor Kay Ivey
According to AL, once the governor signs the bill into law, taxpayers will be eligible to receive these rebates. To qualify for the payment, taxpayers must have filed a state income tax return for 2021 on or before October 17, 2022. The Alabama Department of Revenue plans to begin issuing the rebates starting November 30.
The funding for these tax rebates, amounting to a total of $393 million, will be made possible by a surplus of $2.8 billion in the Education Trust Fund. Recipients of the rebate can expect the payment to be directly deposited into the same bank account they used for their state income tax return last year. In cases where the Alabama Department of Revenue does not have a taxpayer’s bank account information, a paper check will be mailed instead of a direct deposit. It is worth noting that several other states are also providing tax rebates to their residents. Georgia is currently in the process of issuing rebates worth up to $500, while New Mexico plans to distribute rebates of up to $1,000 next month.
Alabama residents are hopeful that the tax rebates will provide some much-needed financial relief
With the bill now passed by the House and Senate, all eyes are on Governor Kay Ivey as taxpayers eagerly await her signature to make the rebates a reality. Once approved, eligible individuals and couples can look forward to a boost in their bank accounts, thanks to the surplus in the Education Trust Fund.