Alabama Residents Rejoice: Tax Rebates Set to Roll Out Soon!

A special tax rebate will be given to the residents of Alabama by the end of this year. The estimated population to benefit from this is 1.9 million. In May the state government of Alabama passed a law that entitled a rebate of $150 to singles and $300 to married couples by this year. This is going to be a one-time payment with the money to be distributed from November 30.

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This is a part of the stimulus program by the government. A stimulus program is a scheme wherein the cash is directly handed to the citizens in order to boos the economy and prevent a slowdown. The main aim of this stimulus bis to help people with the rising inflation. This stimulus started last year due to a huge surplus budget generated by the government. Towards the end of last year, almost all states had stopped and concluded these programs except a few states, Alabama being one of them.

This particulart stimulus is subjected to the condition that they must have filed a state income tax return for 2021 on or before Oct. 17, 2022. Those citizens who had not filed return before the deadline or as classified as a dependent on another taxpayer in 2021 are not eligible for this rebate.

The fund from this rebate comes from the $2.8 billion surplus in the education trust fund and would cost the state about $393 million dollars. This rebate aims to partially offset the sales tax paid by the citizens in groceries which had contributed the above mentioned surplus.

The taxpayers who have registered their bank account iwith the state will find this rebate directly reflecting in their bank accounts, while others will recieve a cheque under their name, mailed.

Furthermore, the state has loweres its grocery sales tax from 4% to 3% from September and will further reduce it by a 2% next year.

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