Posted by Amid ongoing economic challenges, many Americans are hoping for new stimulus checks, and while the federal government has yet to confirm $800 payments for April 2025, some states, including Colorado, are taking proactive steps to help their residents.
One such initiative is the Taxpayer’s Bill of Rights (TABOR) program, which could provide substantial refunds next spring, potentially offering much-needed relief to many.
What is TABOR and How Does It Benefit Colorado Residents?
The Taxpayer’s Bill of Rights (TABOR) serves as a vital mechanism for redistributing surplus state funds to the public. When Colorado experiences a budget surplus, as it has for the 2024 fiscal year, TABOR activates refunds to taxpayers.
In 2025, Colorado is set to distribute nearly $1.4 billion in refunds, providing a significant financial boost to its residents, particularly those still feeling the economic impacts of the pandemic.
How Much Could You Receive Under the TABOR Refund?
For qualifying residents, refunds could reach up to $1,600 for those filing jointly. This sum is not coming from federal funds, but rather from the state’s own surplus.
While the exact refund amount varies depending on individual circumstances, the state’s surplus could offer some relief to many families.
However, there are specific eligibility criteria and new rules that potential recipients should be aware of.
Who Is Eligible for the TABOR Refund in 2025?
Unlike previous years, TABOR refunds are not automatically issued. The program is only activated when the state experiences an exceptionally high surplus, such as the one forecasted for 2025. Colorado residents can receive one of two types of assistance:
- Income Tax Reduction: All taxpayers who file a state return for the 2024 tax year will receive a temporary reduction in the state income tax rate, from 4.40% to 4.25%.
- Sales Rebate: Individuals who have resided in Colorado throughout 2024 and file a state tax return or Property/Rent/Heat Tax Rebate (PTC) application by October 15, 2025, may qualify for a sales rebate.
The refund amount will depend on several factors, including adjusted gross income and other criteria set by the Colorado Department of Revenue. For joint filers, the maximum refund is $1,600, while individuals filing separately will receive a lesser amount.
TABOR Refund Eligibility Requirements
To be eligible for the TABOR refund, individuals must meet these three criteria:
- Residency: Must have lived in Colorado for at least half of the 2024 tax year.
- Age: Must be 18 years of age as of January 1, 2025.
- Tax Filing or Application: Must file the 2024 state income tax return or apply for the personal tax credit by April 15, 2025.
Applications should be submitted online via the official Colorado Department of Revenue website. Applicants must complete the form, provide the required documentation, and double-check all information for accuracy before submission.
Why TABOR Is Important for Colorado Residents
While the TABOR refund is not a substitute for a federal stimulus check, it is a significant state-level benefit that can provide critical economic relief to many households.
For many Colorado residents, this refund represents an economic boost that can help cover daily expenses or other financial needs.
The TABOR program offers Colorado residents an opportunity for much-needed financial relief through refunds funded by the state’s 2024 fiscal year surplus.
Although not a federal stimulus payment, the TABOR refunds represent a welcome source of support for many individuals and families in the state.
By meeting the eligibility requirements and following the proper steps, Coloradans can benefit from this program in 2025.
FAQs
How much can I expect to receive from the TABOR refund?
The refund could be as high as $1,600 for joint filers. However, the amount you receive depends on factors like income and tax filing status.
What do I need to do to qualify for the TABOR refund?
You must have lived in Colorado for at least half of 2024, be at least 18 years old by January 1, 2025, and file your tax return or apply for the personal tax credit by April 15, 2025.
How do I apply for the TABOR refund?
Applications can be completed online via the Colorado Department of Revenue website. Be sure to fill out the required forms and submit the necessary documentation.