Latest Payment Update

Stimulus Check Claimants Time Running Out for Eligibility as Legislative Debate Heats Up. Residents in Massachusetts have limited time left to meet eligibility criteria for the state’s annual Stimulus Check direct payment.

Urgent Updates for Stimulus Check Claimants

Opportunity for Eligibility

Massachusetts is set to return a substantial $2.941 billion to its taxpayers through the 62F Taxpayer Refunds program. This initiative mandates that any excess tax revenue exceeding the annual tax revenue cap must be reimbursed to taxpayers on an annual basis.

Filing Deadline

Distribution of these refunds commenced back in November, but there is still an opportunity for residents to qualify. By filing their 2021 tax returns before Friday, those individuals can ensure their eligibility and anticipate receiving their payments in the upcoming month. The specific refund amount can be determined using the state’s online estimator tool, available here.

State Rebate Stimulus Checks Programs in the U.S.

Massachusetts Proposed Changes and Legislative Debate

It’s worth noting that several other states also offer similar rebate programs. Last year, a total of 18 states participated in this practice, including Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, New Mexico, New York, Oregon, Rhode Island, South Carolina, and Virginia, as reported by the Tax Foundation.

Eligibility Details

In Massachusetts, eligible taxpayers for the 2021 tax year are entitled to a credit amounting to 14.0312 percent of their Massachusetts personal income tax liability. Notably, this marks the first instance in which the state has triggered the Chapter 62F law since 1987.

Credit Determination

The Department of Revenue determined this percentage after the filing extension deadline of October 17, 2022, as stated on the state’s official website. It’s essential to be aware that credits may undergo reductions due to refund intercepts, which can include outstanding tax liabilities, unpaid child support, and specific other debts.

Refund Distribution

These refunds are disbursed automatically through either direct deposit or by check sent through the mail.

Proposed Revisions

In a recent development, state legislators in Massachusetts have put forth proposed revisions to the existing law, which was originally ratified by voters in 1986. The leadership within the State House has advocated for a uniform refund amount for all taxpayers, as opposed to varying refunds contingent upon their respective income tax contributions.

Speaker Statement

Massachusetts House Speaker Ron Mariano articulated this proposed change in an April statement, explaining, “At present, the credit is allocated proportionally against the personal income tax liability of all taxpayers, resulting in larger refunds for those who have contributed more in taxes. The bill suggests modifying the credit to provide an equal refund amount to each taxpayer, rather than offering a rebate based on a percentage of their contributions to the Commonwealth.

Economic Prosperity Clause

Speaking to reporters after introducing the new tax relief plan, Mariano explained, The entire package hinges on the prosperity of the economy. It only comes into effect when the economy achieves significant success, and we aimed to ensure that everyone could partake in that achievement. As we observed how the checks were disbursed, it became evident to all three of us that there are more equitable methods to execute this.

Legislative Votes

The Democratic-controlled House supported the package, aligning with Governor Maura Healey’s tax relief proposal, with an impressive 150-3 vote. However, the state Senate did not endorse the alteration within the tax relief bill, and an agreement on the legislation remains pending.