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A Massachusetts resident earning $1 million during tax year 2021 should now expect a tax refund of $7,016.
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This refund is $516 more than the earlier estimate, when the formula used the 13% income tax liability number.
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But critics have pointed out – the revised 14% metric will not translate into substantial gains for low-income earners.
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Let's say a taxpayer earning $100,000 can expect a credit of $702, which is only about $52 more than the earlier estimate using the 13% metric.
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The person earning $75,000 would have made a return of $526, or only about $38.50 more than it was before the DOR updated its formula.
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And the one who made $50,000 would get $351, or $26 more money than before.
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Similarly a taxpayer who earned $30,000 would receive $210, or only $15 more than before.
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Officials said those who have not yet filed their 2021 tax return but all do so by September 15, 2023, will also be eligible for a refund.
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