The governor of Alabama, Kay Ivey, said that Alabama is booming and that she would approve an $800 lump-sum tax rebate for Alabama families.
Ivey gave a State of the State address at the State Capitol, where she also unveiled several ideas for lawmakers starting the 2023 legislative session, including the refund.
Tax Rebate For Families
In addition, the governor convened a special session of the Legislature beginning on Wednesday to decide how to divide the final $1.1 billion that Alabama received from the American Rescue Plan Act (ARPA), a COVID-19 assistance package approved by Congress two years ago.
The Legislature’s decision to hold a special session to discuss how to use federal monies today resulted in a two-week suspension of the regular session.
Ivey’s proposal of a rebate was not unexpected because lawmakers had already stated they planned to take one into consideration. Ivey claimed that the action is necessary, in part, to aid families who are finding it difficult to pay for necessities due to inflation.
Details on the proposed tax rebate will be in a bill that Finance Director Bill Poole, a member of the governor’s cabinet, anticipates filing when lawmakers return to the regular session on March 21.
According to Poole, individuals who file state income tax returns on their own often qualify for a $400 rebate, which translates to an $800 rebate for households with two earners.
Ivey will request funds for ARPA for the second time during the special session that begins on Wednesday. At a special session last year, lawmakers approved spending the remaining $800 million of Alabama’s first $1 billion from ARPA, with $400 million going toward constructing two men’s prisons.
The largest amounts went into water and sewer improvements as well as the growth of broadband internet connectivity.
Ivey stated that she would issue an executive order to lessen the red tape that small businesses must deal with in other efforts. For the purpose of awarding subsidies to locally owned businesses, she suggested establishing a $200 million Main Street Initiative.
Read more: IRS: How to check your state’s tax refund status?
When To Expect Payment?
In addition, tax refunds are deposited via direct deposit each business day, Monday through Friday. but not on the weekends or on holidays.
A refund check can also arrive in the mail on a Saturday. If you do receive your refund via direct deposit, experts advise contacting your bank to find out when it will be available in your account since this can vary by bank.
A federal income tax refund via direct deposit may take up to 21 days to arrive. But, refunds for electronically submitted taxes frequently arrive sooner.
Even though they may have heard that it was a possibility, many consumers are undoubtedly upset to see a lower return. Due to the anticipated removal of the substantial Advance Child Tax Credit and the recovery rebate credit on 2022 returns, refunds for many taxpayers have decreased.
