According to the Taxpayer Bill of Rights (TABOR) refund which is a result of state revenues exceeding the spending limit set by Colorado law, Colorado residents may be eligible for a state refund check of up to $1,600. It’s an opportunity that is available only for unique eligible taxpayers. Taxpayers need to know what rebates exist, who can apply for them and their key deadlines.
What is the TABOR refund?
The Taxpayer Bill of Rights (TABOR) is a law in Colorado that mandates the state to refund taxes to the taxpayers when the revenue collections exceed a certain limit. The refund amount depends on factors like inflation rates, the growth rate of the population and previous years’ spending limit. For Fiscal Year 2023, Colorado has initiated its plan to issue TABOR refunds which will help provide financial support to several state taxpayers.
As per Colorado Department of Revenue, this year’s refund amounts are pegged at $800 for single filers and $1,600 for joint returns. Unlike previous years where refund amounts could be different for varying individuals, this year’s refunds are similar among all eligible taxpayers hence making it simple for those who qualify.
Who Is Eligible for the TABOR Refund?
If you want to get the $1600 TABOR reimbursement in Colorado, there are some qualifications you need to meet and also you have to file your state income tax return at the right time. There are various categories of taxpayers who can apply for this refund:
- Single Taxpayers:
Must have been at least 18 years old at the beginning of the fiscal year.
Must file an individual income tax return (DR 0104) for the tax year 2023 by April 15, 2024.
Must have no income tax liability in Colorado or are not required to file a federal tax return.
Must not claim a refund of wage withholding or have no other filing requirement.
- Joint Filers:
Must file a joint income tax return (DR 0104) by October 15, 2024.
May have an income tax liability or need to claim a refund of wage withholding.
Are required to file a Colorado tax return if they are required to file a federal tax return.
The eligibility criteria have been created with the aim of making sure that all sorts of people can access the refund in Colorado. This includes individuals who may never fill in a state tax return because their income is so little it doesn’t warrant taxation.
How to apply for the TABOR refund
To apply for the $1,600 TABOR refund, submit your 2023 Colorado state income tax return or Property Tax/Rent/Heat Credit (PTC) rebate application. Follow these simple steps to apply:
- File your state tax return:
Submit the DR 0104 individual income tax return form by April 15, 2024, for single taxpayers or October 15, 2024, for joint filers. Make sure you include all necessary information to ensure you qualify for the refund.
- Meet the requirements:
Ensure you meet all the eligibility requirements mentioned above, including the minimum age, residency status, and income criteria.
- Claim the refund:
Indicate on your state tax return form that you are claiming the TABOR refund. If you’re filing online, the process will guide you through this step automatically.
- Stay updated:
Keep an eye on official announcements from the Colorado Department of Revenue for any changes or updates to the refund process.
Important Deadlines to Remember
In order to be eligible for the TABOR refund, you must file your Colorado state tax return within these deadlines:
- April 15, 2024: Deadline for single taxpayers to file their 2023 state income tax return (DR 0104) or PTC application.
- October 15, 2024: Extended deadline for joint filers or those with an income tax liability to file their state tax return.
Why is Colorado offering this refund?
The TABOR refund is basically as a result of Colorado’s robust revenue performance in the previous fiscal year. The state’s total revenue collection exceeded estimates thus prompting a refund under TABOR laws. According to TABOR webpage by the Colorado Legislative Council, “The state’s TABOR revenue limit is generally equal to the amount of money collected in that particular financial year after adjustments (inflation) and/or growth of population density within its jurisdiction that took place at voter approved minimum threshold.” These surpluses are meant to go back into taxpayers which consequently benefits individuals living in Colorado.
The economy has been through hard times such as inflationary pressures and tight job markets hence this TABOR refund comes as an alleviation for many Coloradans especially those who earn low incomes or are on the verge of falling into poverty line. As the refund process unfolds, taxpayers are encouraged to stay informed and make sure they file their returns promptly to receive their share of the rebate.
