Not Received the Alabama Tax Rebate Yet? Here’s What the State Has to Say

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Alabama commenced the distribution of a one-time rebate of $150 earlier this month. Some taxpayers, however, have not received the Alabama tax rebate yet. Now, the Alabama Department of Revenue has come out with an update for such taxpayers.

Not received the Alabama tax rebate yet? what to do

Almost 2 million residents are estimated to receive the one-time rebate from Alabama. Eligible single filers will receive $150, while couples filing jointly qualify for $300. The one-time rebate is estimated to cost the state about $393 million, and it will be funded by a $2.8 billion surplus in the Education Trust Fund.

Alabama residents started receiving the one-time tax rebate on December 1, giving a financial boost to eligible residents just in time for the holiday season. Some residents, however, are complaining of a longer wait period than anticipated.

The Alabama Department of Revenue has provided an answer for taxpayers who have not received the Alabama tax rebate yet, saying the department has a substantial task at hand, and they are making every effort to expedite the process of distributing the rebate checks while maintaining accuracy.

“The Alabama Department of Revenue is working diligently to process more than 1.9 million paper and direct deposit rebate checks in a timely manner,” the department said in a statement.

In the meantime, the department has urged recipients who have not received the Alabama tax rebate yet to be patient, saying allow us time “for the rebate to be received.”

There are no income limits to qualify for the rebate, but recipients must have filed their 2021 individual income tax return with ALDOR on or before Oct. 17, 2022.

Nonresidents, trusts, estates, and people claimed as dependents won’t receive the rebate money. Also, a deceased taxpayer who filed a 2021 Individual Income Tax return as a single, head of family or married filing separately won’t get the rebate.

More information on one-time rebate

Alabama began issuing rebates on December 1 via direct deposit or paper check. How you receive the rebate depends on how you received your 2021 tax refund. You will receive the direct deposit in the same account in which you received the 2021 tax refund.

Others will receive the rebate through a physical check. Also, paper checks will be issued to taxpayers whose banking details have changed since filing their 2021 refund. Those who received a 2021 refund using a tax preparer’s account will receive a paper check as well.

This one-time rebate won’t be subject to Alabama income taxes.

Taxpayers who require more information regarding their eligibility, the rebate amount they will get and the mode of rebate delivery, can visit the Alabama Department of Revenue’s FAQ page or call 334-242-1170.