Colorado taxpayers are in for a financial treat this year as the state is set to distribute significant refunds thanks to a $3.6 billion revenue surplus. The extra cash comes from Colorado’s Taxpayer’s Bill of Rights (TABOR), which requires the government to return excess tax revenue to residents. Here’s everything you need to know about this year’s refund, who qualifies, and how to claim it.
Why Is Colorado Sending Out Refunds?
Under the TABOR law, when Colorado collects more tax revenue than it’s allowed to keep, the surplus is returned to taxpayers. In the 2023 fiscal year, the state collected $3.6 billion over the limit, meaning a refund bonanza is in store for residents.
The state has confirmed that individuals will receive $800, while couples who file jointly will get $1,600. This payout is a relief for many Colorado households, especially as inflation continues to strain budgets.
Am I Eligible for the Refund?
To qualify for the TABOR refund, you must meet these basic requirements:
- You must be at least 18 years old.
- You need to be a full-year Colorado resident for 2024.
- You must file a Colorado state income tax return. If you don’t normally file taxes, you can still qualify by filing a property tax, rent, or heat rebate application.
If you meet these conditions, you’re all set to receive your refund. Just make sure to file your 2024 taxes by April 15, 2025, or by the extended deadline on October 15, 2025, to avoid missing out.
How Much Will I Get?
The amount you receive depends on your income and whether you’re filing as a single individual or jointly. While $800 (single) and $1,600 (joint) are the standard amounts, some taxpayers may see smaller refunds due to income-based adjustments. Here’s a general breakdown:
- Lower income brackets (below $53,000) may receive $177 (single) or $354 (joint).
- Those earning above $302,000 could see refunds of $565 (single) or $1,130 (joint).
Make sure to check your adjusted gross income to estimate your refund amount accurately.
How to Claim Your Refund
Getting your refund is simple, but you need to take action when filing your 2024 Colorado state tax return. Be sure to select the correct option for the TABOR refund, either electronically or through your tax preparer. Most tax software will walk you through this process.
Refunds will be issued via direct deposit or mailed checks, depending on your filing method. Electronic filers can expect their refund within two weeks, while paper filers may need to wait a bit longer.
Why Is the Refund Lower This Year?
If you received $1,600 in 2023 and notice a smaller amount this time around, you’re not alone. The state made adjustments based on new tax credits and deductions, reducing the overall refund pool. Additionally, future refunds are expected to be even lower due to legislative changes. For example, projections suggest that by 2026, refunds could drop to $41 for single filers and $82 for joint filers.
Final Thoughts
For now, Colorado’s $800 and $1,600 refunds provide welcome relief for many residents. If you qualify, make sure to file your state tax return on time and select the right refund option. As future refunds decrease, this year’s payout could be one of the last significant TABOR windfalls, so don’t miss out!
