Residents of Alabama can anticipate the arrival of one-time tax rebates, with the Alabama Department of Revenue initiating disbursements starting this Friday. The disbursement method, either through direct deposit or paper check, is contingent on the manner in which individuals received their 2021 tax refunds. Approximately 1.9 million residents are slated to receive these payments, as reported by al.com.

This rebate initiative will incur a cost of about $393 million for the state, sourced from a $2.8 billion surplus within the Education Trust Fund. The eligibility criteria for these rebates, set at $150 for single filers and $300 for married couples filing jointly, stipulate that taxpayers must have filed their 2021 individual income tax return on or before October 17, 2022. Importantly, there are no income limits or phase-outs for these payments.

Certain individuals, however, will not be eligible for the tax rebate. This includes those who failed to file a 2021 state Individual Income Tax return by October 17, 2022, non-residents of the state, estate or trust accounts, and individuals who were claimed as dependents during the 2021 tax year.

Residents meeting the eligibility criteria but not having received a 2021 tax year refund will obtain their rebate through a paper check sent to their current address on record with the state revenue department. Similarly, paper checks will be issued to those whose banking details have changed or who received a 2021 refund through a tax preparer’s account.

It’s worth noting that these rebate payments are exempt from state taxes.