Alabama’s one-time tax rebate payments begin processing Friday

MONTGOMERY, Ala. (WSFA) - Alabamians will start seeing their one-time tax rebates, promised as part of Gov. Kay Ivey’s 2023 budget, as early as Friday.

The payments will begin on Dec. 1, according to the governor’s office.

The amount of each rebate, which will be issued by direct bank deposit or paper check, is based on the qualified taxpayer’s filing status:

• $150 for single, head of family, and married filing separate
• $300 for married filing joint

“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,” Ivey said. “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 the Alabama Department of Revenue received on or before Oct. 17, 2022. Ivey’s office noted that non-residents, estates or trusts, or anyone who was claimed as a dependent during the 2021 tax year do not qualify.

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

Ivey first announced her plan to utilize Alabama’s historic budget surplus to provide meaningful financial relief to working Alabama families during her 2023 State of the State Address, where she stated, “This is the people’s money, and it’s only right, while acknowledging we are recording revenues far exceeding normal and sustainable levels, we give a fair share of this money directly back to the people of Alabama.”

Ivey used the State of the State Address to initially propose the Legislature give nearly $1 billion in one-time rebates of $400 for single taxpayers and $800 for joint filings. Lawmakers ultimately reduced the size of the rebates to the current amounts.

“With a strong state economy built on investment in Alabama’s future, we are equipped to be in a healthy economic position as a state for years to come,” said state Senate President Pro Temp Greg Reed. “Because we are in such a strong economic position as a state, it is our job as responsible stewards of taxpayer money to return money to the people of Alabama through this rebate during the holiday season.”

“Inflation has hit our state hard in recent years,” added Senate Minority Leader Bobby Singleton. “These rebates will return some dollars back to the taxpayers and provide relief to help ease that inflationary burden.”

“In recent years, we’ve witnessed federal spending spiraling out of control, resulting in some of the highest inflation rates in decades,” said Speaker of the House Nathaniel Ledbetter. “This has had a tangible impact on families in our state. The Alabama House worked hand-in-glove with the governor to help ease that burden.”

“The Alabama Legislature worked hard with the governor this year to put money back in people’s pockets,” said House Minority Leader Anthony Daniels. “These tax rebates are just in time for the holidays and can help make the season a little brighter for Alabama families.”

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