Stimulus Update: Massachusetts to Issue $500 Million in Tax Breaks to All Residents
Massachusetts announced a $500 million package of tax breaks around “a framework for structural changes to our tax code that will put money back into the pockets of lower-and middle-income residents of the Commonwealth,” House Speaker Ron Mariano, Senate President Karen Spilka, and Ways and Means chairs Rep. Aaron Michlewitz and Sen. Michael Rodrigues announced in a tweet July 11.
“The changes to our tax code that will reduce income inequality, make Massachusetts more competitive nationally, and lessen the crippling impact of rising prices, inflation, and economic uncertainty,” they shared in the joint statement. “These changes, in conjunction with the economic relief payments for middle-class residents that were announced last week, bring the Legislature’s taxpayer relief package to a total of $1 billion – including at least $500 million worth of proposed changes to the tax code, they said, adding that they “look forward to ironing out the final details of the taxpayer relief package.”
Just last week, the Massachusetts legislature announced it would establish the Taxpayer Energy & Economic Relief Fund to issue economic relief rebates for individuals. As such, Spilka and Mariano announced a one-time tax rebate of up to $500 to be issued before Sept. 30 to Massachusetts residents, to offset the increased cost of living, according to a July 8 tweet.
In addition, there will be one-time rebates of $250 for a taxpayer who files an individual return, and $500 for married taxpayers who file joint returns, which will be issued to eligible Massachusetts residents before September 30, 2022. Eligibility will be determined by the annual income reported in 2021, with the minimum being $38,000, and the maximum being $100,000 for individual filers and $150,000 for joint filers.
“Whether it is the rising price of gas, groceries or summer clothes for kids, the Massachusetts Legislature has heard loud and clear that increased costs due to inflation have cut into family budgets,” Spilka, wrote in a tweet. “These rebates represent the Legislature’s commitment to delivering immediate financial relief directly to residents of the Commonwealth, rather than to large oil companies that continue to profit off economic uncertainty and international conflict.”
More From GOBankingRates
- 5 Frugal Money Habits Americans Can Learn From Other Countries
- The Average Retirement Age in 2023 in the US vs Canada
- 3 Things You Must Do When Your Savings Reach $50,000
- Don't Make These Common Mistakes If You Want to Retire Wealthy
