On Wednesday, Governor Kay Ivey announced that Alabama taxpayers will receive their one-time tax rebates beginning on December 1.
Ivey first announced her plan to utilize Alabama’s historic budget surplus to provide a tax rebate 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,” Gov. Ivey said.
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 Gov. Ivey. “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.
State Senator Greg Reed (R-Jasper) is the Senate President Pro Tempore.
“The resilience of hardworking Alabamians and conservative fiscal policies passed by the Legislature have made our state economy strong,” said President Pro Tem. 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:
Single and married people who file separately can expect a $150 one-time rebate.
Married couples who file jointly can expect to receive $300.
“Inflation has hit our state hard in recent years,” said Senate Minority Leader Bobby Singleton (D-Greensboro). “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 who did not receive a 2021 tax year refund, the rebate can be expected by paper check.
Rep. Nathaniel Ledbetter (R-Rainsville) is the Speaker of the Alabama House of Representatives.
“In recent years, we’ve witnessed federal spending spiraling out of control, resulting in some of the highest inflation rates in decades,” said Speaker 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 (R-Huntsville). 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.
Ivey had originally wanted a more significant rebate. The version of the budget that passed out of the Senate included no rebate but did include tax cuts. The Alabama House of Representatives restored the rebate, and the 2024 budget that went into effect on October 1 includes tax rebates and tax cuts. For many families, this rebate could pay for their Christmas.
To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
