Citizens who live in Colorado will see a sunnier summer. All thanks to the state’s Taxpayer’s Bill of Rights (TABOR), residents in this state will be eligible for refund checks of up to $1,600 in 2025. It must be remembered that these payments are not federal state stimulus payments, they are the return of citizens’ tax dollars due to the surplus in state revenue taxes collected in 2024. For Coloradans, these checks would mean extra funds for a summer vacation, home improvements, or even for catching up with their bills.
Why are Coloradans getting this TABOR refund?
According to the Colorado’s TABOR law that was passed in 1990s, there is a limit as to how much revenue the state is able to collect and spend each year. Shold tax collections exceed the cap; any excess money ought to be returned to taxpayers.
As of this year, the surplus is approximately $1,7 billion which means Coloradans will receive a rather generous refund to date. According to the state budget, $800 would go to single filers while $1,600 would go to joint filers. This is said to be the standard amount irrespective of citizens income. With this flat payment, high-income households will receive the same surplus payment as college students.
Although TABOR has great support from voters, TABOR has also faced much criticism. TABOR’s legality could be challenged according to a proposed bill in the Colorado House. The argument is that TABOR hinders the state’s ability to govern effectively. Should this bill become law, TABOR would be reevaluated affecting the possibility of future funds.
Who qualifies for the refund?
Citizens can get their TABOR refunds relatively easily provided that they meet certain eligibility criteria. This includes criteria such as:
- Being Colorado residents for a full year in 2024.
- Being at least 18 years old by January 1, 2025.
- Filing the 2024 state income tax return by October 15, 2025
All those citizens who filed their taxes by April 15, should have received their refund by the end of April. Filing later could mean waiting for approximately 60 days after your return gets processed. Returns get sent to citizens either by direct deposit or paper check depending on how they filed.
Residents from lower income households who don’t normally file a return can find an alternative way to qualify for this refund. Citizens can still qualify if they apply for the Property Tax, Rent, Heat (PTC) Rebate, so long as they have submitted their application by October 15.
As opposed to past year TABOR refunds, this year TABOR refunds are combined with their regular state tax refund, and they must opt in by selecting a checkbox on their state return. Missing out on these steps could make you miss out on these refunds entirely.
What can Coloradans expect to get?
Although some sources anticipate that all citizens will get $800 or $1,600, newer legislative changes seem to change the picture. To determine how much Coloradans get, the Colorado Department of Revenue-Taxation also uses an income-based schedule for certain filers. Based on a resident’s adjusted gross income, the resident’s refund will range from $177 to $565 for single filers and $354 to $1,130 for joint filers.
The state has, however, confirmed that citizens who filed by last year’s cutoff would receive $800 to $1,600 payouts. Those who get their returns earlier will most likely be on the higher end of the scale.
The future of TABOR payments
All future TABOR payments won’t be as generous. 2026 refunds will most probably drop to just $41 (for single filers) or $82 (for joint filers), due to new tax credits and deductions signed into law by Governor Jared Polis. This may very well be the biggest TABOR payment that citizens will receive for a while.
Although Coloradans have often debated the merits of TABOR, the checks are still coming for now and they are big enough to fund citizens’ next summer vacation.
