Your “income tax liability” is the amount of taxes that were due to Massachusetts for the 2021 tax year, after application of any credit (including the pass-through entity credit under chapter 63D) and before estimated taxes and withholding. How do I find out what my personal income tax liability was in 2021? The estimator at the top of this page can help you calculate an estimate of your refund amount. Please also note that credits are subject to offsets, including for unpaid tax liability, unpaid child support, and certain other debts. This percentage was finalized by the Department of Revenue after the 2021 individual tax return filing extension deadline of October 17, 2022. That means that in general, taxpayers will receive a refund that is 14.0312 % of their personal income tax liability in Massachusetts for Tax Year 2021. If you have not yet filed your 2021 return, you are still eligible if you file by Septemand, if eligible for a refund, you should receive it approximately one month after you file.Ĭhapter 62F requires distribution of the credits in proportion to personal income tax liability in Massachusetts incurred by taxpayers in the immediately preceding taxable year – Tax Year 2021. If you have already filed your 2021 tax return and you had a tax liability, no action is needed, and you should receive your refund by mid-December of 2022. Do I need to take any action to receive a refund?
Note: pass-through entities that elected to pay the excise under chapter 63D are not eligible to receive a refund. Fiduciary filers (trusts and estates) are eligible.Non-residents on whose behalf a partnership or S corporation files on a composite basis are eligible.Both resident and non-resident filers are eligible.EligibilityĪnyone who paid personal income taxes in Massachusetts for the 2021 tax year and filed a 2021 state tax return on or before Septemis eligible to receive a refund. This means that the amount that must be returned to taxpayers under the statute is $2,941,499,731. In FY22, total state tax revenue collected was $41,812,654,358, which exceeded the allowable revenue threshold for FY22 as defined by Chapter 62F of $38,871,154,627 by a total of $2,941,499,731. Why is Chapter 62F being triggered this year? The State Auditor then makes the determination of whether net state tax revenue exceeds allowable state tax revenue – and, if so, by what amount – on or before the third Tuesday of September (September 20 th in 2022). The law requires that the Department of Revenue submit a report to the State Auditor on the net state tax revenues and the allowable state tax revenues for each fiscal year by September 1 st. Who determines whether Chapter 62F is triggered? Refund EstimatorĬhapter 62F is a Massachusetts General Law that requires the Department of Revenue to issue a credit to taxpayers if total tax revenues in a given fiscal year exceed an annual cap tied to wage and salary growth in the Commonwealth.Įnacted by voters in 1986 via a ballot question, the Chapter 62F process has been triggered once before, in 1987. Please call the 62F Refund Call Center at 87 with questions regarding your refund. Note that there is no system through which you can check the status of your 62F refund. The Department of Revenue does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. You can use the estimator below to estimate your refund based on your Tax Year 2021 income tax liability.
If you have not yet filed your 2021 return, you are still eligible if you file by Septemand, if eligible for a refund, you should receive it approximately one month after you file. Please note that credits may be reduced due to refund intercepts, including for unpaid tax liability, unpaid child support, and certain other debts.ĭistribution of refunds will begin on Novem– eligible taxpayers will receive their refund automatically through direct deposit or as a check sent through the mail. In general, eligible taxpayers will receive a credit in the form of a refund of 14.0312 % of their Massachusetts personal income tax liability for Tax Year 2021. In accordance with the statute, this excess revenue is being returned to taxpayers. In this past fiscal year, Fiscal Year 2022 (FY22), Massachusetts tax revenue collections exceeded the annual tax revenue cap set by Chapter 62F of the Massachusetts General Laws by $2.941 billion.
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