Chapter 62F Taxpayer Refunds

Massachusetts law requires that when tax revenue collections in a given fiscal year exceed an annual tax revenue cap, the excess revenue is returned to taxpayers.

TABLE OF CONTENTS

Overview
Refund Estimator
Frequently Asked Questions
Additional Information

Overview

In this past fiscal year, Fiscal Year 2022 (FY22), Massachusetts tax revenue collections exceeded the annual tax revenue cap set by Chapter 62F of the Massachusetts General Laws by $2.941 billion. This revenue will be returned to taxpayers in the coming months.

In general, eligible taxpayers will receive a credit in the form of a refund of approximately 13% of their Massachusetts personal income tax liability for Tax Year 2021. This percentage is a preliminary estimate and will be finalized in late October, after the 2021 tax return filing extension deadline of October 17, 2022. Please also note that credits may be reduced due to refund intercepts, including for unpaid tax liability, unpaid child support, and certain other debts.

In order to be eligible, you must have filed a 2021 state tax return on or before October 17, 2022. If you are eligible for a refund, you will receive it automatically as a check sent through the mail or through direct deposit.

Distribution of refunds is expected to begin in November 2022. No action is needed to receive your refund. More specific information about timing for refunds will be shared closer to that time.

Frequently Asked Questions

About Chapter 62F

What is Chapter 62F?

Chapter 62F is a Massachusetts General Law that requires the Department of Revenue to issue a credit to taxpayers if total tax revenues in a given fiscal year exceed an annual cap tied to wage and salary growth in the Commonwealth.

See the full law here: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62F

Enacted by voters in 1986 via a ballot question, the Chapter 62F process has been triggered once before, in 1987.

Who determines whether Chapter 62F is triggered?

The law requires that the Department of Revenue submit a report to the State Auditor on the net state tax revenues and the allowable state tax revenues for each fiscal year by September 1st.

The State Auditor then makes the determination of whether net state tax revenue exceeds allowable state tax revenue – and, if so, by what amount – on or before the third Tuesday of September (September 20th in 2022).

Why is Chapter 62F being triggered this year?

In FY22, total state tax revenue collected was $41,812,654,358, which exceeded the allowable revenue threshold for FY22 as defined by Chapter 62F of $38,871,154,627 by a total of $2,941,499,731.

This means that the amount that must be returned to taxpayers under the statute is $2,941,499,731.

Eligibility

Who is eligible to receive a refund?

Anyone who paid personal income taxes in Massachusetts in the 2021 tax year and filed a 2021 state tax return on or before October 17, 2022 is eligible to receive a refund.

Please note that:

Both resident and non-resident filers are eligible.
Non-residents on whose behalf a partnership files on a composite basis are eligible.
Fiduciary filers (trusts and estates) are eligible.

Do I need to take any action to receive a refund?

No action is needed to receive your refund. In order to be eligible, you must have filed a 2021 state tax return on or before October 17, 2022. If you are eligible for a refund, you will receive it automatically as a check sent through the mail or through direct deposit.

More information on how you will receive your refund will become available November 2022. Distribution of refunds is expected to begin in November 2022.

How much am I eligible to receive?

Chapter 62F statute requires distribution of the credits in proportion to personal income tax liability in Massachusetts incurred by taxpayers in the immediately preceding taxable year – Tax Year 2021.

That means that in general, taxpayers will receive a refund that is approximately 13% of their personal income tax liability in Massachusetts in Tax Year 2021. This percentage is a preliminary estimate and will be finalized in late October, after the 2021 tax return filing extension deadline of October 17, 2022. Please also note that credits are subject to offsets, including for unpaid tax liability, unpaid child support, and certain other debts.

The estimator at the top of this page can help you calculate a preliminary estimate of your refund amount.

How do I find out what my personal income tax liability was in 2021?

Your “income tax liability” is the amount of taxes that were due to Massachusetts for the 2021 tax year, after application of any credit and before estimated taxes and withholding.

To find out what your income tax liability was for Tax Year 2021:

For residents: your income tax liability is the amount on line 32 of Form 1 for Tax Year 2021 minus the sum of lines 43 through 47 on Form 1 for Tax Year 2021.
For non-residents or part-year residents: your income tax liability is the amount on line 36 of Form 1-NR/PY for Tax Year 2021 minus the sum of lines 47 through 51 of Form 1-NR/PY for Tax Year 2021

What if I need a copy of my 2021 Massachusetts tax return for the purposes of using the estimator at the top of this page?

The following Department of Revenue website explains how to request a copy of your previously filed 2021 Massachusetts tax return:

Request copies of previously filed tax returns and other taxpayer-specific records from DOR | Mass.gov

Will I still get a refund if I received a 2021 income tax refund? Will the 2021 income tax refund reduce the refund I am getting now?

Previously-issued Tax Year 2021 income tax refunds will not reduce or otherwise impact your 62F refund, and your receipt of a 62F refund has no bearing on whether you will be due an income tax refund for Tax Year 2022. 62F refunds will only be reduced due to intercepts, including for unpaid tax liability, unpaid child support, and certain other debts.

What if I am filing on extension and have not yet filed my 2021 tax return?

Any tax filings filed with the Department of Revenue by the filing extension deadline of October 17, 2022 will be eligible for a refund.

Receiving Your Refund

When should I expect my refund?

Distribution of refunds is expected to begin in November 2022. No action is needed to receive your refund. More specific information about timing for refunds will be shared closer to that time.

What if I filed jointly in Tax Year 2021?

Your refund will be tied to your 2021 filing status.

For example, there will be a single refund for taxpayers who filed jointly in 2021, even if not filing jointly in 2022.

How will I receive my refund?

More information on how you will receive your refund will be available by November 2022.

Will the refunds be treated as taxable income?

The refunds are not taxable as income at the state level.

All tax refunds, including the 62F refunds, are taxable at the federal level only to the extent that an individual claimed itemized deductions on his or her federal return for Tax Year 2021, including his or her state income tax. Refund recipients who itemized on their federal returns for Tax Year 2021 will receive a Form 1099-G from the Department of Revenue by January 31, 2023 to use when completing their 2022 federal return.

Additional Information

Beginning Tuesday, September 20, 2022, a call center will be available to answer 62F refund questions at 877-677-9727 Monday through Friday from 9am – 4pm. Please note that the exact refund amount for each eligible taxpayer will be determined as refunds are processed, so the call center will not be able to provide your refund amount until after it has been issued.

The estimator at the top of this page can help you calculate a preliminary estimate of your refund amount.

This website (mass.gov) will be updated as additional information becomes available.

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Chapter 62F Taxpayer Refunds