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Key Highlights
- Colorado’s TABOR program will provide refunds to eligible residents for the 2024 tax year, with payments distributed in 2025.
- Refund amounts range from $177 to $1,130 for single filers, based on income.
- Eligibility requires full-year Colorado residency in 2024 and filing a state income tax return.
- Unlike in 2022, refunds will be included with tax refunds rather than issued as separate checks.
- Future TABOR refunds may decrease due to new laws affecting surplus revenue distribution.
Understanding the 2025 TABOR Refund
As the 2025 fiscal year approaches, Colorado residents anticipate another round of TABOR refunds. The Taxpayer’s Bill of Rights (TABOR) ensures that when state revenue exceeds a set limit, the surplus is returned to taxpayers. This guide explains who qualifies, how to claim the refund, and what changes to expect.
What is the TABOR Refund?
Established in 1992, TABOR limits the amount of tax revenue Colorado can retain. When collections exceed the cap, the state must refund the surplus. The Colorado Department of Revenue oversees these refunds, which may be distributed through direct payments, tax credits, or reductions in tax rates.
TABOR has historically provided additional financial relief through property tax reductions and lower income tax rates. Refund amounts and methods can vary annually based on state legislation.
Why the TABOR Refund Matters
The TABOR refund reflects Colorado’s commitment to fiscal responsibility and returning excess revenue to taxpayers. It provides financial relief that taxpayers can use for savings, investments, or expenses. Additionally, these refunds inject money back into the local economy and promote government accountability.
Eligibility for the 2025 TABOR Refund
Understanding the eligibility criteria can help ensure you receive your refund. To qualify, taxpayers must:
- Be a full-year Colorado resident for the entire 2024 tax year.
- Be at least 18 years old as of January 1, 2024.
- File a 2024 Colorado state income tax return, regardless of tax liability.
For joint filers, both individuals must meet these conditions. Even those who do not owe taxes should file to receive the refund.
Refund Amounts Based on Income
The refund amount depends on your Adjusted Gross Income (AGI) and filing status:
| Adjusted Gross Income | Single Filer | Joint Filer |
|---|---|---|
| Up to $53,000 | $177 | $354 |
| $53,001 to $105,000 | $240 | $480 |
| $105,001 to $166,000 | $277 | $554 |
| $166,001 to $233,000 | $323 | $646 |
| $233,001 to $302,000 | $350 | $700 |
| $302,001 and up | $565 | $1,130 |
All taxpayers will also benefit from a small reduction in their income tax rate due to TABOR.
How to Claim Your TABOR Refund
Claiming your refund is simple with proper planning. Follow these steps:
Step 1: Verify Your Eligibility
Confirm that you meet the residency, age, and tax filing requirements. If you typically do not file a Colorado income tax return, ensure you do so to claim the refund.
Step 2: Gather Necessary Documents
Prepare the following:
- Social Security Number (SSN) (for you and your spouse, if applicable).
- Income Documentation (W-2s, 1099s, and other relevant financial records).
- Previous Year’s Return (optional, but useful for reference).
Step 3: File Your 2024 Colorado State Tax Return
Ensure your return is submitted by April 15, 2025. If you need an extension, the deadline extends to October 15, 2025.
Frequently Asked Questions
Who is eligible for the 2025 TABOR refund?
Colorado residents who lived in the state for all of 2024 and filed a state income tax return are eligible. Refund amounts depend on income and filing status.
What documents do I need to claim the TABOR refund?
The primary requirement is filing a 2024 Colorado state income tax return. Keep supporting documents like W-2s and 1099s for verification.
How can I check my TABOR refund status?
The Colorado Department of Revenue provides online tools and phone assistance to track refunds after tax filing.
Is there a deadline to claim the 2025 TABOR refund?
Yes. File your state tax return by April 15, 2025. If you file for an extension, the final deadline is October 15, 2025.
Does the TABOR refund affect my tax bracket or rates?
No, but TABOR refunds are typically accompanied by small reductions in the state income tax rate.
Final Thoughts
Understanding the TABOR refund process helps ensure you receive the money you’re entitled to. By filing your Colorado state tax return on time and keeping necessary documents ready, you can maximize your refund benefits. Stay informed about state tax laws to take full advantage of available financial relief.
Reviewed and edited by Albert Fang.
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Article Title: Who Qualifies for the 2025 TABOR Refund?
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