Thanks to an obscure Massachusetts law passed back in 1986, Massachusetts taxpayers will be eligible to receive a tax refund starting November 1, 2022. Chapter 62F was a measure passed by Massachusetts residents in 1986 that required the state to refund a certain percentage of collected taxes if the state collected more taxes than what is considered the annual cap tied to wage and salary growth throughout the state. Triggered only once before in 1987, 2022 marks the second time this measure has been enacted in over thirty years.
For tax year 2021, the Commonwealth has collected an estimated $3 billion in excess tax revenue that will be distributed back to the taxpayers. The amount will be 14.035% of the taxpayer’s tax liability. Eligible taxpayers include resident and non-resident individuals as well as trusts and estates.
No action on the end of the taxpayer is required to receive the refund. If you are eligible, then you will receive the refund automatically either through check or direct deposit based upon your 2021 tax return. If you have not filed your 2021 tax year return, then you have until September 15th, 2023, to be eligible for the refund.
These refunds should be rolling out at the beginning of November for most taxpayers who filed before April 18th of 2022. If you filed on extension, your refund might be delayed compared to other taxpayers.
A quick and easy refund estimator is available at the Mass.gov website if you would like to see what you could receive with your refund.
Mass.gov Refund Estimator & Chapter 62F Q&A: Chapter 62F Taxpayer Refunds | Mass.gov
If you have any questions on the above and how it applies to you, please call us at 401-921-2000, or reach us through email or complete our online contact form.