Mass. tax refunds start this week, but heres why yours could take longer

As Massachusetts officials prepare to send nearly $3 billion in excess state revenues back to taxpayers starting this week, the Department of Revenue late Monday afternoon clarified its staggered distribution plan for Bay Staters.

Tax refunds, issued as checks in the mail or via direct deposit, will start flowing Tuesday to eligible residents as required by a tax cap law known as Chapter 62F.

About 500,000 refunds, which will translate into 14% of a taxpayers 2021 personal income tax liability, will be sent this week, the Department of Revenue said in a news release.Read more: Baker going out on top, notches 68% Mass. approval rating, poll finds

In subsequent weeks, approximately one million refunds will be distributed weekly thereafter until all currently eligible refunds have been distributed, the DOR said. The Baker administration expects about 3 million taxpayers will receive refunds.

Distribution could still span through Dec. 15, as a state official cautioned about potential delays prompted by the U.S. Postal Service. But a compressed timeline would align with Gov. Charlie Bakers hope to see the refunds issued around Thanksgiving as people grapple with inflation and elevated prices at the pump.

Refunds will be distributed randomly, not alphabetically or in any other predictable order, a state official said. Direct deposits will be labeled MASTTAXRFD.Read more: Tax relief in the form of Beacon Hills stalled economic development bill may materialize soon

Taxpayers can consult the states refund estimator tool here. Refunds might be reduced due to intercepts such as unpaid taxes, unpaid child support and other debts, state officials said.

No action is needed for Bay Staters to secure their refunds, which were triggered amid ballooning surplus revenues, as long as they already filed their 2021 tax returns and had a tax liability. Residents who have yet to file their 2021 tax returns but do so by Sept. 15, 2023 will also be eligible for a refund, officials said.Read more: Springfields Union Station will be site of Cybersecurity Center of Excellence with $1.5 million state grant

Chapter 62F has come under sharp scrutiny from Beacon Hill onlookers, who have sounded the alarm about the inequitable refund formula that disproportionately benefits the commonwealths wealthiest residents.

The tax cap law also halted lawmakers more than $4 billion economic development bill in July, which contained a separate $1 billion tax relief package, including one-time $250 stimulus checks. But Baker said last week he expects a compromise bill will land on his desk within the next couple of weeks.

Bay Staters can direct questions about their Chapter 62F tax refunds to a call center at 877-677-9727. Its open weekdays from 9 a.m. to 4 p.m. Residents can also visit a state webpage about Chapter 62F.