You Can Still File Your 2021 Massachusetts Return and Get a 62F Tax Refund

If you paid personal income taxes in Massachusetts in 2021, and file your 2021 Massachusetts tax return by September 15, 2023, you’ll get a percentage of the nearly $3 billion dollars in tax refund “stimulus” money that Massachusetts has been sending to eligible taxpayers.

Most of the refunds have already been distributed, but if you already filed your 2021 Massachusetts tax return and haven’t received your 62F refund, don’t panic, it’s likely on the way. And, if you haven’t filed your 2021 Massachusetts tax return, you still have time to do so and receive your refund, if you’re eligible for one.

Also, if you received a Massachusetts tax refund payment, you may be wondering whether the amount will be taxable on your federal income tax return. On February 10, the IRS announced that most of the special state payments that were sent to residents during 2022 won't be taxable on 2022 federal returns. The variety of state stimulus check programs and the complexity of the different programs have made it challenging for the IRS to provide clarity to taxpayers before now.

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Massachusetts Tax Refund 2022

This Massachusetts tax refund for 2022 came during a recent trend where states flush with cash from post-pandemic budget surpluses, sent state “stimulus” checks, inflation relief payments, and tax rebates, to their residents.

For example, California MIddle Class Tax Refund payments have almost all been sent. And in Virginia, eligible residents who filed their 2021 Virginia tax return by November 1, received Virginia tax “stimulus” rebates of up to $500.

But it's important to note that the 2022 tax refund program in Massachusetts is a little different than other state “stimulus” programs because each eligible Massachusetts taxpayer received a different amount of money in their tax refund check. That’s because Massachusetts mailed a check or provided a direct deposit that amounted to about 14% of each eligible taxpayer’s state income tax liability from their 2021 tax return.

Why did Massachusetts return nearly $3 billion to eligible taxpayers? Well, in 1986, Massachusetts voters approved a law known as Chapter 62F. That law requires Massachusetts to return excess revenue to taxpayers. 

The law was triggered for the first time in a while because during the 2022 fiscal year, Massachusetts collected state tax revenue totaling $41,812,654,358. (That exceeded the allowable threshold under Chapter 62F by more than $2.9 billion). 

So, in 2022, to comply with state law, Massachusetts returned the more than $2.9 billion in excess revenue to eligible taxpayers.

When did the Massachusetts tax refunds begin? The refunds were first sent in early November of 2022. After that, Massachusetts sent millions of refunds each week. At this point, most of the refunds have been sent to taxpayers who already filed their 2021 Massachusetts tax returns. Reportedly, millions of refunds were sent via check and another one million or so tax refunds were sent via direct deposit.

Who’s Eligible for the 2022 Massachusetts Tax Refund?

If you paid personal income taxes in Massachusetts in 2021 and filed your 2021 Massachusetts tax return by October 17, 2022, you should have received, or will soon, receive a 2022 Massachusetts tax rebate. Almost all of the refunds were expected to be issued by December 15. However, if you haven't filed your Massachusetts tax return, you still have time to do so. As long as you file by September 15, 2023, and you're eligible, you can still receive the 62F Massachusetts tax refund, according to state officials.

How Much Tax Refund Money Do Massachusetts Taxpayers Receive?

Eligible Massachusetts taxpayers generally received a 2022 tax refund of about 14% of their 2021 Massachusetts income tax liability. However, if you have unpaid taxes or owe child support, the amount of your refund might have been reduced by the amount of the outstanding tax liability or unpaid child support.

When Should You Have Received Your Massachusetts Tax Refund?

Eligible Massachusetts taxpayers started to see tax refund money around November 1, 2022, and as of December 15, 2022, officials expect that nearly all the refunds will have been issued to taxpayers who already filed their 2021 Massachusetts tax returns. (That’s because if you filed your Massachusetts tax return by October 17, you didn’t need to do anything else to receive the 2022 62F Massachusetts tax refund.) 

Most of the Massachusetts tax refunds were sent via check, in the mail. Also, if Massachusetts had your banking information available, they provided your refund via direct deposit. Direct deposits are labeled “MASTTAXRFD.”

If you haven't received your refund yet, and want to know how much to expect, there is a calculator on the state’s website to help you estimate how much your tax refund will be. The website also contains answers to frequently asked questions about the 2022 Massachusetts tax refunds.

And, if you have questions about your Massachusetts tax refund, you can contact the call center that has been established at 877.677.9727. That call center is available Monday through Friday, from 9 am to 4 pm ET.

Are Massachusetts Tax Refunds Taxable?

Massachusetts will not treat tax refunds (including the 2022 62F refunds) as taxable income. That's good news. But if you received a Massachusetts 62F tax refund payment, you may have been wondering whether the amount will be taxable on your federal income tax return. Well, on February 10, the IRS announced that most of the special state payments that were sent to residents during 2022 won't be taxable on 2022 federal returns. The variety of state stimulus check programs and the complexity of the different programs have made it challenging for the IRS to provide clarity to taxpayers before now.

Avoid Scam Calls Involving Massachusetts Tax Refunds

The Massachusetts Department of Revenue has made clear that it will not contact you by phone or email or via social media channels, regarding this 2022 62F tax refund. If you receive a phone call, text, or other communication asking you to make a payment, that is a scam communication. Also, no one from the Massachusetts government has authorized any entity or person to help speed up the tax refund process. So, if you are contacting by someone claiming to help you expedite your 62F refund, that is also a scam.

The Massachusetts Department of Revenue can be contacted with questions through its 62F Refund Call Center at 877-677-9727.

Do the 62F Tax Refunds Favor Wealthy Bay Staters?

There has been some criticism and concern that the Massachusetts 62F tax refunds favor high income residents. That’s in part because the refund amounts are based on a flat percentage.

A Massachusetts Budget and Policy Center analysis puts the likely average amount of the tax refund at about $529 for an average Massachusetts taxpayer. However, data from 2018 indicate that lower income taxpayers could receive tax refunds that are less than $10, while 2020 data show that taxpayers with incomes over $1 million could receive more than $28,000, on average.

Overall, the Massachusetts Budget and Policy Center concluded that almost 75% of the nearly $3 billion in tax refunds will go to people whose incomes are in the top twenty percent of Massachusetts’ income distribution.

Are More Federal Stimulus Checks Coming?

It’s important to know that the 2022 Massachusetts tax refund and other 2022 state tax rebate checks and state stimulus payments are different from the three rounds of COVID-19 stimulus payments that you may have received from the federal government in the recent past.

That federal stimulus check program has ended. However, if you did not receive your third COVID stimulus payment of $1,400, or your 2021 child tax credit, you might be able to file your 2021 federal income tax return and get those funds.