BOSTON (WWLP) – More details have been released on how 3.6 million taxpaying residents will receive their refunds from the excess tax revenue.

On Thursday, the State Auditor’s certified the Fiscal Year 2022. The allowable state tax revenue for this year was roughly $38.8 billion and the state collected around $41.8 billion, leading to an overage of over $2.94 billion. Due to Chapter 62F, that money is required to be returned to taxpayers.

“Stronger-than expected state tax revenues have led to a major surplus for Fiscal Year 2022, and we are pleased to be able to return nearly $3 billion in excess revenue to the taxpayers,” said Governor Charlie Baker. “With families facing continued pressure from high prices and inflation, these returns will provide some needed relief.  Even with nearly $3 billion going back to taxpayers, significant state and federal resources remain, and we look forward to working with the Legislature to invest this funding into our economy, communities and families.”

Here’s how that money will be distributed:

A total of $2.941 billion will be returned to eligible taxpayers by the Department of Revenue in proportion to personal income tax liability in Massachusetts for taxpayers from the previous taxable year, Tax Year 2021. Those eligible will receive a credit of approximately 13% of the Massachusetts Tax Year 2021 personal income tax liability.

The percentage is a preliminary estimate and will be finalized by the state in late October, once all 2021 tax returns are filed. In order to be eligible for a return, residents must have filed a 2021 state tax return by October 17, 2022.

It’s important to note, a resident’s credit may be reduced if they have refund intercepts which include unpaid taxes, unpaid child support, and certain other debts. If you filed your 2021 tax returns jointly, you will only receive one single refund.

So when will taxpayers be getting this credit? Eligible residents will automatically receive a check sent through the mail or through direct deposit. Refunds are expected to begin in November 2022. The refunds will not be taxable as income at the state level.

“Strong economic growth throughout our Commonwealth, combined with careful management of state tax dollars, has resulted in a significant surplus this past fiscal year,” said Lt. Governor Karyn Polito. “In the coming months, our administration will work diligently to distribute these funds back to taxpayers, and we look forward to working with the Legislature to invest additional surplus dollars in local economies across our state.”

“While the exceptionally high tax collections we saw in FY22 are a testament to the strength and resilience of the Massachusetts economy, we are pleased to be in a position to return a substantial portion of this revenue back to taxpayers,” said Administration and Finance Secretary Michael J. Heffernan. “With many feeling the strain of rising prices, these refunds will be a welcome source of relief for more than three million hardworking individuals across the state, and we look forward to executing on the delivery of the refunds in the coming months.”

The state has created a website that can help you estimate the refund you are likely to receive. A call center will also be available beginning September 20 at 877-677-9727. The call center will be available Monday through Friday from 9:00 a.m. to 4:00 p.m.