The state of Alabama remains among the minority yet to distribute a stimulus check, valued at a potential $300. For several weeks, the conversation has circulated around the timing of this state-sponsored financial aid, with the anticipation building up. It appears that the wait might be over soon, with the distribution date being just around the corner, within a month.
This past May, Alabama’s governor, Kay Ivey, enacted new legislation that encompasses rebates on state taxes. The state’s authorities have announced that these rebates will be issued to citizens as a measure to counterbalance the food taxes imposed in the previous year. Notably, Alabama is among the select states in the U.S. that apply taxes to food items, a significant portion of which is directed to fund public education via the Education Trust Fund. The financial resources required to issue these rebates to Alabamians will be withdrawn from this educational fund.
Alabama Stimulus Check Distribution
Starting December 1, 2023, eligible residents of Alabama should anticipate the arrival of these rebate funds directly into the bank accounts that are associated with their state tax filings for 2021. Should your 2021 tax submission lack banking details, the state plans to mail out paper checks as tax rebates. Ordinarily, it takes about one to two weeks for such checks to arrive via post.
The state government has clarified that these rebate checks will not be factored into 2023’s Alabama state income tax. Additionally, these refunds are shielded from any debt collection activities or offsets, ensuring that debts owed to the state or other state-level obligations will not diminish the amount refunded.
Earlier in March, Governor Ivey had suggested a one-off tax refund of $400 for individuals, including single filers, heads of households, and those married but filing separately, with $800 earmarked for joint filers. A proposal from the state Senate, however, recommended more modest amounts—$105 for individuals and $210 for married couples filing separately.
An attempt by the Alabama House to double these figures was unsuccessful, and eventually, a consensus was reached for a $150 refund for single filers and $300 for couples filing jointly, which is the sum Alabama taxpayers will be granted.
For those who did not submit an individual income tax return in Alabama for the fiscal year of 2021, eligibility for the 2023 tax rebate is forfeited. Similarly, estates and trusts are excluded from receiving this rebate. Additionally, no rebate will be issued to individuals who were listed as dependents on either a federal or Alabama state tax return in 2021.