Governor Kay Ivey signed a bill that gives Alabama residents who filed 2021 taxes — on or before Oct. 17 — a $150-$300 rebate check as early as Nov. 30. After changing the amounts twice, lawmakers eventually decided on a one-time payment of $300. This will affect a predicted 1.9 million Alabama residents. 

This is rebate — repayment of an overpaid tax, bill or other payment — check is a form of stimulus check from the Alabama legislation from issues with the 2021 grocery taxation. 

“The state had a bit of a surplus. I think part of it was the federal funds they got. I do believe that some revenue also increased over that time, so for whatever reason they had a surplus… In order to help the average taxpayer in Alabama, here’s a little something to hopefully get your holiday started off well,” said Frank Miles, Alabama Department of Revenue spokesperson.

Depending on how a resident filed their 2021 tax form decides how much they receive. If one filed as married or joint, they will receive the full $300, or if filed as single, head of household or married filing separately, they will receive $150. If a resident was claimed as a dependent or did not file at all, they are not qualified to receive the rebate check. 

Qualified Alabamians will begin to receive these through the bank account listed on the 2021 tax form, if no bank account was listed it will be mailed as a paper check.  The qualified will also not need to pay Alabama income tax on the 2023 tax rebate payment. 

Residents are receiving this payment to help offset the grocery taxes they paid in 2021. Alabama is one of the few states that charge taxes on groceries in the United States. 

The plan will cost the state about $393 million out of the $2.8 billion education trust fund surplus. Ivey signed saying she was proud to sign a bill that would return “the working people of Alabama’s money back to them through tax rebates.” 

Other states like Minnesota and New Mexico have recently approved stimulus checks like this one. Minnesota’s and New Mexico’s eligibility requirements are similar to Alabama’s in the terms of 2021 tax form submission. The rebate amounts for minnesota are $520 for married couples filing a joint return with adjusted gross income of $150,000 or less, $260 for all other individuals with adjusted gross income of $75,000 or less and another $260 for each dependent claimed on your return, up to three dependents ($780). The amounts for New Mexico are $1000 for married couples filing joint returns, heads of household and surviving spouses and $500 for single filers and married individuals filing separately.