Stimulus Check
Colorado’s TABOR Refund 2025: Payments of Up to $1,142
As of November 2024, Colorado residents can expect Taxpayer’s Bill of Rights (TABOR) refunds in 2025, with payments reaching as high as $1,142 for joint filers. This refund reflects the state’s surplus revenue for the 2024 fiscal year, continuing Colorado’s commitment to redistributing excess funds back to taxpayers.
When Will Colorado Residents Receive Their TABOR Refund in 2025?
Colorado’s Department of Revenue plans to begin issuing TABOR refunds in spring 2025, with most payments processed by July 2025. These refunds are based on income brackets, ensuring equitable distribution among eligible taxpayers.
Auditors estimate that approximately $1.4 billion in excess state income tax revenue will be refunded to taxpayers. Payments will be allocated according to adjusted gross income (AGI) brackets, as shown below:
| Adjusted Gross Income | Single Filer | Joint Filer |
|---|---|---|
| Up to $53,000 | $181 | $362 |
| $53,001–$107,000 | $241 | $482 |
| $107,001–$172,000 | $277 | $554 |
| $172,001–$243,000 | $330 | $660 |
| $243,001–$320,000 | $355 | $710 |
| $320,001 or more | $571 | $1,142 |
What Is TABOR and Why Are Refunds Issued?
The Taxpayer’s Bill of Rights (TABOR), passed by Colorado voters in 1992, limits the amount of revenue the state can collect. When tax revenues exceed this limit, the surplus must be refunded to taxpayers.
The TABOR program is designed to:
- Ensure fiscal responsibility.
- Return surplus funds directly to taxpayers instead of reallocating them to state programs.
Who Qualifies for the 2025 TABOR Refund?
To be eligible for the 2025 TABOR refund:
- Tax Filing Requirement: File a Colorado tax return for 2024 or apply for a personal tax credit by April 15, 2025.
- Residency: Reside in Colorado for at least six months of the 2024 tax year.
- Age Requirement: Be 18 years or older as of January 1, 2025.
Eligible residents who meet these criteria will automatically qualify for the refund.
How to Apply for the TABOR Refund
Residents do not need to submit a separate application for the TABOR refund if they file a Colorado state tax return. However, non-tax filers eligible for specific personal tax credits must apply.
Steps to claim the refund:
- Visit the Colorado Department of Revenue Website: Access the refund form online.
- Complete the Form: Provide accurate personal and income information.
- Attach Necessary Documents: Include relevant supporting documents, such as proof of residency or tax credit eligibility.
- Submit by Deadline: Ensure submissions are completed by April 15, 2025.
Why Are TABOR Refund Amounts Different for Income Levels?
TABOR refunds are calculated based on taxpayers’ adjusted gross incomes. Higher earners typically receive larger refunds because they contribute more to the state’s revenue. This tiered system ensures proportionality in the redistribution of surplus funds.
For example:
- Low-Income Brackets: Refunds begin at $181 for single filers.
- High-Income Brackets: Refunds max out at $1,142 for joint filers earning over $320,001.
What Makes the 2025 TABOR Refund Significant?
The 2025 TABOR refund is larger than many prior years due to record-high tax revenue collections in the fiscal year 2024. Factors contributing to the surplus include:
- Economic Growth: Increased income tax revenue due to higher wages and business activity.
- Population Growth: An expanding taxpayer base contributed to overall collections.
- Inflation Adjustments: Adjustments to taxable income thresholds increased state revenues.
How Does TABOR Impact Colorado’s Economy?
Economic Relief for Residents
TABOR refunds provide direct financial relief, helping residents cover expenses like rent, groceries, and utilities.
Support for Local Businesses
Refunds often stimulate local economies as residents spend their payouts on goods and services.
Criticism of TABOR
While TABOR ensures fiscal accountability, critics argue that refunding surplus funds limits resources for public services, such as education, healthcare, and infrastructure development.
Conclusion
Colorado’s 2025 TABOR refund promises significant financial relief, with payments of up to $1,142 for joint filers. This year’s surplus underscores the state’s robust economy and commitment to taxpayers. By filing your 2024 tax return on time, you can secure your share of this refund and help contribute to Colorado’s tradition of fiscal transparency and accountability.
FAQs
When Will I Receive My TABOR Refund Payment?
The refund payments began in mid-2023, with distribution expected to be completed by the end of the year. Direct deposits are typically processed faster than check payments.
Can Non-Filers Claim the TABOR Refund?
Yes, some non-filers, like those who qualify for the Property Tax/Rent/Heat (PTC) rebate, may still be eligible to receive a refund.
How Much Will I Receive from the TABOR Refund?
The refund amount varies by income. Higher income levels can receive up to $1,142, while middle and lower-income earners receive scaled-down amounts.
What Is the Purpose of the TABOR Refund?
The TABOR refund aims to limit government growth and ensure that excess revenue is returned to taxpayers.
Where Can I Find More Information on My Refund Status?
Taxpayers can visit the Colorado Department of Revenue’s official website or call their support center for the latest information on refund processing.