Alabama taxpayers will receive one-time tax rebates beginning this week.

The Alabama Department of Revenue (ALDOR) will issue rebates of $150 for single filers and $300 for married filers beginning December 1.

“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,” Gov. Kay Ivey said in a statement. “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 claimed as a dependent during the 2021 tax year do not qualify.

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. The rebates will not be taxable for Alabama income tax purposes.

Other recent tax changes in Alabama include a one-cent reduction in the state sales tax on groceries and a one-cent increase in the state gas tax. An overtime pay state income tax exemption for hourly workers will begin on January 1, 2024.

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