The Colorado Taxpayer Bill of Rights (TABOR) approved in 1992, requires excess revenue to be annually refunded to taxpayers. The Colorado Legislature then decides on how the refunds will be allocated.

Unlike last year when most taxpayers received the same amount ($800 for single filers; $1,600 for joint), TABOR refunds on 2024 tax returns will be reflected in two ways:

• A temporary reduction in the income tax rate to 4.25% applicable to all taxpayers. The income tax rate on 2023 tax returns was 4.4%.

• A sales tax refund based on the Adjusted Gross Income reported on the tax return. The six-tier refund chart can be viewed at this link - 2024 TABOR Refund Chart. The refund will be calculated as part of the income tax return.

To qualify for your TABOR refund, you must be:

• A full-year Colorado resident;
• File your tax return on time, either on or before April 15, 2025, or on or before October 15, 2025, if you file for an extension of time to file.
• Be at least 18 years of age as of the beginning of 2024.

Senior citizens and college students, for example, who may not owe tax or need to file a Federal income tax return should still file a Colorado income tax return to claim their TABOR sales tax credit, but be sure to file on time!

QUESTIONS?

Be sure to call or email us!