Tax rebates to be issued starting Dec. 1

One-time tax rebates of $150 per filer will be coming to taxpayers on Dec. 1

Gov. Kay Ivey first announced her plan to utilize Alabama’s historic budget surplus to provide financial relief to working Alabama families during her 2023 “State of the State” address.

“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,” Ivey said.

At that time, Ivey announced plans to issue $400 rebates per filer, but that amount was heavily whittled down by the Legislature, with a compromise finally coming between the House and Senate. 

The Alabama Department of Revenue (ALDOR) will issue the rebates beginning Dec. 1.

“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,” Ivey said. “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. “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

“Inflation has hit our state hard in recent years,” said Senate Minority Leader Bobby Singleton. “These rebates will return some dollars back to the taxpayers and provide relief to help ease that inflationary burden.”

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. 

“In recent years, we’ve witnessed federal spending spiraling out of control, resulting in some of the highest inflation rates in decades,” said Speaker of the House Nathaniel Ledbetter. “This has had a tangible impact on families in our state. The Alabama House worked hand-in-glove with the governor to help ease that burden.”

“The Alabama Legislature worked hard with the governor this year to put money back in people’s pockets,” said House Minority Leader Anthony Daniels. “These tax rebates are just in time for the holidays and can help make the season a little brighter for Alabama families.”

The rebates will not be taxable for Alabama income tax purposes.