Next, DOR will multiply the liability as reported on a taxpayer's personal income tax return (after being reduced by any credits) by the 'excess revenue percentage' to calculate the taxpayer's excess revenue credit amount.

The document makes clear that it begins with the 'credits required to be issued for the fiscal year ending June 30, 2022.'įirst, DOR will calculate the 'excess revenue percentage' that will be used to calculate the amount of a taxpayer's excess revenue credit by 'dividing the excess state tax revenues determined by the State Auditor for the previous fiscal year by the estimated total personal income tax revenues received by the Commonwealth in the current calendar year in payment of personal income tax liabilities incurred for the previous taxable year.' DOR said that will happen after the deadline to file an eligible return, which is Monday. To that end, DOR later on Friday also published a ' technical information release' that explains how the agency plans to handle the excess revenue credit any time that the auditor certifies that the state collected more than the Chapter 62F cap allows. The regulation that was repealed described a process under which a taxpayer 'may claim an excess revenue credit toward personal income tax liability for the current taxable year equal to the taxpayer's personal income tax liability for the previous taxable year multiplied by the excess revenue percentage.'īut with nearly $3 billion due back to taxpayers instead of less than $30 million in 1987, Baker has said he wants the money to go out as rebate checks in the coming weeks rather than as a credit on next year's taxes. The Baker administration told the New Service in August that it got no public comments on its plan to repeal the regulation (830 CMR 62F.6.1) stemming from the May hearing.

On Friday, DOR sent a notice saying that the regulation had officially been repealed 'because it is out-of-date.' Sign up for NBC Boston’s newsletters.īut while Chapter 62F's nearly $3 billion impact was not clear until late July, the Department of Revenue began the process of repealing the 'obsolete' regulation that guided 62F distributions in April when it posted notice of a May hearing on the little-known rules.

Get Boston local news, weather forecasts, lifestyle and entertainment stories to your inbox.

How to earn credits on nbc