Gov. Ivey: Alabama taxpayer rebates will soon be on the way
Governor Kay Ivey's office said in a press release that the one-time tax rebates for Alabama taxpayers induced in her 2023 budget will be on the way beginning next month.
Governor Ivey first announced her plan to utilize Alabama’s historic budget surplus to provide meaningful financial relief to working Alabama families during her 2023 State of the State Address. She stated during the speech, “This is the people’s money, and it’s only right, while acknowledging we are recording revenues far exceeding normal and sustainable levels, we give a fair share of this money directly back to the people of Alabama.”
The Alabama Department of Revenue (ALDOR) will issue the rebates beginning December 1, 2023.
“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,” said Governor Ivey in a press release. “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.”
To qualify for the rebates, taxpayers must have filed a 2021 Individual Income Tax return which ALDOR received on or before October 17, 2022. Non-residents, estates or trusts or anyone who was claimed as a dependent during the 2021 tax year do not qualify.
“The resilience of hardworking Alabamians and conservative fiscal policies passed by the Legislature have made our state economy strong,” said state Senate President Pro Temp Greg Reed in a press release. “With a strong state economy built on investment in Alabama’s future, we are equipped to be in a healthy economic position as a state for years to come. Because we are in such a strong economic position as a state, it is our job as responsible stewards of taxpayer money to return money to the people of Alabama through this rebate during the holiday season.”
The amount of each rebate is based on the qualified taxpayer’s filing status:
•$150 for single, head of family, and married filing separate
•$300 for married filing joint
Qualified taxpayers can expect to receive their rebate based on how they received their 2021 tax year refund, by direct deposit or paper check. For qualified taxpayers that did not receive a 2021 tax year refund, the rebate can be expected by paper check.
The rebates will not be taxable for Alabama income tax purposes.