This summer, Colorado residents have an exciting reason to celebrate: generous tax refunds under the Taxpayer’s Bill of Rights (TABOR). This bill aims to return excess revenue collected by the government back to taxpayers, offering significant financial relief to many families.
Let’s look into the TABOR refund program, its requirements, how to apply, and its impact on Colorado’s economy. For the 2023 tax year, individual taxpayers can claim up to $800, while married couples filing jointly can receive up to $1,600. Due to higher-than-expected tax collections surpassing the TABOR limit, Colorado has accumulated a substantial sum to be refunded. Residents need to understand the process to claim their share as the tax season approaches its end.
Eligibility
To qualify for the 2024 TABOR refund, several conditions must be met. First, applicants must have resided in Colorado for at least half of the 2023 tax year and be at least 18 years old by January 1, 2024. Importantly, they should not have any outstanding Colorado income tax liabilities.
Additionally, applicants must not owe any obligations to the Department of Human Services as of July 1, 2023, or have spent 180 days or more in jail during Colorado’s fiscal year from July 1, 2023, to June 30, 2024. They must also file their 2023 Colorado individual income tax return or apply for a Personal Tax Credit by the due date to secure their right to the refund.
Application
Claiming the TABOR refund is straightforward but requires action from taxpayers. The crucial step is to complete the 2023 DR 0104 form before April 15, 2024. Even those who haven’t paid Colorado income tax can qualify if they meet the age requirement.
For those with Colorado income tax obligations, the deadline to declare a refund of wage withholding or file a Colorado return, if required by the federal government, is extended to October 15, 2024. Properly filing your tax return is essential to benefit from the TABOR refund.
Economic Impact
The TABOR refund has a notable impact on both Colorado residents and the state’s economy. Many residents receive significant refunds, which can be used to pay bills, invest, or save. This influx of money can boost spending across the state, stimulating economic activity.
However, unclaimed refunds do not disappear. If a refund is not processed for disbursement, the balance is carried forward to the next fiscal year, ensuring the funds remain available for future distribution.
The TABOR refund is an excellent opportunity for Colorado residents to receive substantial tax-free payments, with individual filers eligible for up to $800 and joint filers up to $1,600. This program positively impacts many households by providing financial relief. Filing taxes is a legal requirement for eligible citizens to receive refunds, so it’s crucial to submit the correct forms before the deadlines.
By staying informed about state tax policies and potential refunds, residents can anticipate future rebates and make the most of their financial opportunities.
FAQs
Who qualifies for the TABOR refund?
Residents aged 18+ who lived in Colorado for half of 2023.
What’s the maximum refund for joint filers?
Married couples can receive up to $1,600.
When is the deadline to file for the refund?
File by April 15, 2024; extensions until October 15, 2024.
What happens to unclaimed refunds?
They roll over to the next fiscal year.
How do I apply for the refund?
Complete the 2023 DR 0104 form before the deadline.