November 4, 2022

Massachusetts Excess Tax Revenue Distributions Start November 1

Massachusetts Excess Tax Revenue Distributions Start November 1 State & Local Tax

Massachusetts taxpayers can expect to begin receiving tax refunds mandated by state law starting November 1.

Chapter 62F Taxpayer Refunds requires refunds to be distributed if net state revenues exceed allowable revenues, an amount determined via a formula. In 2021, the subject tax year, net revenue exceeded allowable revenue by almost $3 billion.

The Department of Revenue (DOR) will start sending refunds this week; the refunds are expected to be approximately 14% of the taxpayer’s 2021 liability.

Taxpayers should be on the lookout for a refund via direct deposit, if they provided direct deposit information when filing or via U.S. mail. DOR notes that the direct deposit refunds will be marked MASTTAXRFD. The paper refunds will include a brief description of the law mandating the refund.

DOR advises that if you have already filed your 2021 tax return you should expect to automatically receive your refund by December 15; no further action is required.

For questions, please reach out to a Marcum State and Local Tax specialist, or visit the DOR refund page, which includes Frequently Asked Questions and a refund estimator.