Financial expert gives advice on spending tax rebates

BIRMINGHAM, Ala. (WBRC) - Alabama taxpayers will be getting money through the mail or direct deposit in just a few weeks.

Taxpayers in Alabama will be receiving one-time tax rebates on Dec. 1, according to Gov. Kay Ivey’s 2023 budget, and although it may be tempting to spend the money right away, experts warn against it- especially if you have debt racking up.

The amount you’ll get for tax rebates is based on your tax filing status.

• $150 for single, head of family, or married filing separately
• $300 for married filing jointly

Welch Group Senior Advisor Marshall Clay notes that tax rebates are often an unexpected boost for taxpayers since it does not happen often. Clay adds that the best way to spend the money from the rebates has to do with your financial situation.

“I would look to pay down credit card debt first and foremost then look to other forms of debt,” said Clay. “Certainly, if you have debts in the 4, 5, 6 percent range -- that’s definitely a good place to put this money and not frivolously spend, but you’ve got to balance out to your life. Life’s all about balance.”

To qualify, taxpayers must have filed a 2021 state tax return before Oct. 17, 2022.

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