As Colorado residents prepare for a financial boost in 2024, the state’s Taxpayer’s Bill of Rights (TABOR) refund is set to deliver up to $1,694 for eligible taxpayers. This initiative, known as “Cash Back” payments, is designed to return a portion of the state’s surplus revenues to its residents. Here’s everything you need to know about eligibility, payment dates, and how to ensure you receive your refund.
What is the TABOR Refund?
Colorado’s Taxpayer’s Bill of Rights (TABOR) requires the state to refund excess tax revenues when collections exceed certain limits. In 2024, Colorado is expected to return approximately $3.28 billion to taxpayers.
Historically, these refunds were distributed based on income, with higher earners receiving more. However, recent changes have made the payments equal for all taxpayers, regardless of income.
Who is Eligible for the $1,694 Stimulus Payment?
Eligibility for the TABOR refund depends on a few key factors:
- Residency: You must be a Colorado resident who filed a 2022 state income tax return.
- Filing Status:
- Single filers are eligible for a payment of $847.
- Joint filers (married couples filing jointly) will receive $1,694.
There are no income restrictions for the 2024 TABOR refunds, meaning that residents at all income levels qualify for the same payment amount.
Payment Date
The distribution of TABOR refunds is expected to occur in early fall 2024, with most payments being issued by the end of September. Payments will be made either through direct deposit or mailed paper checks, depending on the method specified on your state tax return.
If you filed your tax return and are eligible, you do not need to take any additional action to receive your payment. It will be automatically processed and sent based on the information provided on your tax filings.
Colorado $1,694 Stimulus Payment Overview
| Category | Details |
|---|---|
| Program | Colorado TABOR Refund (Cash Back Payment) |
| Payment Amount | $847 (single filers), $1,694 (joint filers) |
| Eligibility | Filed 2022 Colorado state income tax return; Colorado resident |
| Payment Method | Direct deposit or paper check |
| Payment Date | Expected by the end of September 2024 |
Why are TABOR Payments Important?
The TABOR refund offers direct financial relief to residents and helps stimulate local economies by encouraging spending. These payments allow families to cover essential expenses like rent, groceries, and utilities, especially as living costs continue to rise.
Additionally, distributing the refund equally across income brackets aims to support lower-income families who may need extra financial assistance the most. While the original system gave more to higher earners, the new flat rate ensures all residents benefit from the state’s economic success.
How to Ensure You Receive the Payment
- Ensure your tax return is filed: Only those who filed a 2022 Colorado state income tax return are eligible for the payment.
- Verify your bank information: If you opted for direct deposit, ensure that the bank details on your tax return are accurate to avoid delays.
- Stay informed: Keep an eye on updates from the Colorado Department of Revenue for specific payment dates and processing details.
FAQs
Any Colorado resident who filed a 2022 state income tax return is eligible for the TABOR refund. Single filers will receive $847, while joint filers can expect $1,694.
Payments are expected to be distributed by the end of September 2024. Direct deposit payments may arrive sooner, while paper checks could take longer.
No additional application is required if you have already filed your 2022 state income tax return. Payments will be processed automatically.
The taxability of TABOR refunds depends on federal and state tax laws. It’s advisable to consult a tax professional to understand how this payment might affect your taxes.
If you didn’t file a 2022 Colorado state income tax return, you won’t be eligible for the 2024 TABOR refund. Make sure to file future tax returns on time to qualify for any upcoming payments.
The Colorado TABOR refund offers valuable financial relief for taxpayers across the state. Be sure to check your eligibility, update your bank information, and stay informed about payment dates to ensure you receive your refund smoothly.
