In 2024, a new Taxpayer’s Bill of Rights (TABOR) may increase tax refunds for Colorado families. This changes the traditional income-based distribution of TABOR reimbursements. Colorado lawmakers prefer equitable payments for everybody. This implies that higher-income beneficiaries will receive smaller refunds than in prior years, while lower-income recipients will receive more.
Colorado’s Tax Refund Overhaul: Single Filers Anticipate $847, Joint Filers $1,694 in 2024 TABOR Update, Returning $3.28 Billion to Taxpayers
The updated allocation is an expected $847 for single filers and $1,694 for joint filers in TABOR refunds next year. The whole impact should return $3.28 billion to Colorado taxpayers. After Colorado voters rejected Proposition HH, equal TABOR funds were implemented.
This proposal raised the state’s revenue cap, cut property tax, and provided a one-time, universal TABOR refund. However, future tax refunds were questioned.
A bill to expand Colorado’s earned income tax credit passed simultaneously. This expansion should lower TABOR refunds to $800. Individuals earning up to $51,000 were expected to receive $586, while those making $51,001 to $104,000 were expected to receive $769.
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Colorado’s TABOR Reform: Income-Based Adjustments in Tax Refunds for 2024 Aim to Address Inequality
The law reduces TABOR refunds for those earning over $104,001 from slightly under $100 to $1,000 for the top earners. The only two groups to receive TABOR money increases are those earning up to $51,000 and those earning $51,001 to $104,000.
Legislation was made to address TABOR refund distribution and income inequality. Equalizing payments across the board attempts to establish a more balanced and equitable system, giving low-income people a bigger boost. Expanding the earned income tax credit is part of a larger effort to manage state tax policy. Thus, Colorado families should expect 2024 tax refund revisions, with some seeing a raise.
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