Montgomery, AL – In an official statement, Governor Kay Ivey of Alabama, on Wednesday, reemphasized her commitment to provide tax rebates to Alabama taxpayers as part of her 2023 budget. These one-time rebates are set to be distributed starting on December 1, 2023, with the aim of offering financial relief to working families across the state.
The Governor originally unveiled her plan to utilize the historic budget surplus in Alabama to support its citizens during her 2023 State of the State Address. During this address, she underscored the importance of giving back to the people of Alabama, recognizing the state’s substantial revenue surplus.
The Alabama Department of Revenue (ALDOR) has been tasked with the responsibility of disbursing these rebates, and the process will commence on December 1, 2023.
Governor Ivey expressed her dedication to responsible fiscal management and the belief that government should act as a steward of taxpayer dollars, particularly during challenging economic times. She noted the impact of rising costs on families across the state and emphasized the significance of these one-time tax rebates, which will coincide with the holiday season.
To qualify for these rebates, taxpayers must have filed their 2021 Individual Income Tax return, and ALDOR must have received it on or before October 17, 2022. Notably, non-residents, estates, trusts, or individuals claimed as dependents during the 2021 tax year are not eligible for these rebates.
The strength of the state’s economy, fueled by the resilience of hardworking Alabamians and prudent fiscal policies enacted by the Legislature, has positioned Alabama favorably. State Senate President Pro Temp Greg Reed highlighted the state’s strong economic position and its ability to return money to the people of Alabama, emphasizing the responsibility of the government to provide this rebate during the holiday season.
The amount of the rebate depends on the taxpayer’s filing status, with $150 allocated for single filers, heads of family, and those married filing separately, and $300 for those filing jointly.
Alabama has not been immune to the challenges posed by recent inflation. Senate Minority Leader Bobby Singleton recognized the impact of inflation on the state and acknowledged that these rebates will offer some relief to taxpayers facing the burden of rising prices.
Qualified taxpayers can expect to receive their rebates through the same method they received their 2021 tax year refund, either by direct deposit or paper check. Taxpayers who did not receive a tax year refund in 2021 will receive the rebate by paper check.
Speaker of the House Nathaniel Ledbetter noted the adverse effects of federal spending and inflation on Alabama families and commended the collaboration between the Alabama House and the Governor to alleviate this burden.
House Minority Leader Anthony Daniels underscored the significance of these tax rebates, coming at the right time for the holidays, and their potential to brighten the season for Alabama families.
Importantly, it should be noted that these rebates will not be subject to Alabama income tax.
