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On Dec. 6, Gov. Kay Ivey announced that one-time tax rebates in her 2023 budget have begun being distributed to 1.9 million Alabama tax filers. The checks began going out on Dec. 1, the start date authorized by law.

The rebate checks come from Ivey’s plan to use Alabama’s budget surplus to provide financial relief to working Alabama families. Ivey announced the plan during her 2023 State of the State address in March.

“This is the people’s money,” Ivey said. “It’s only right, while acknowledging we are recording revenues far exceeding normal and sustainable levels, we give a fair share of this money directly back to the people of Alabama.” 

To qualify for the rebates, taxpayers must have filed a 2021 Individual Income Tax return which the Alabama Department of Revenue received on or before October 17, 2022. Non-residents, estates or trusts, or anyone who was claimed as a dependent during the 2021 tax year do not qualify.

The amount of each rebate is based on the qualified taxpayer’s filing status:

• $150 for single, head of family, and married filing separate
• $300 for married filing jointly

“The resilience of hardworking Alabamians and conservative fiscal policies passed by the Legislature have made our state economy strong,” said State Senate President Pro Temp Greg Reed. “With a strong state economy built on investment in Alabama’s future, we are equipped to be in a healthy economic position as a state for years to come. Because we are in such a strong economic position as a state, it is our job as responsible stewards of taxpayer money to return money to the people of Alabama through this rebate during the holiday season.”

Taxpayers who qualify are expected to receive their rebate either through direct deposit or a paper check depending on how they received their 2021 tax year refund.

If any eligible Alabama residents have not received their rebate by Dec. 15, they should call the Alabama Department of Revenue at 334-242-1170, and select option one.

The rebates will not be taxable for Alabama income tax purposes.