$1,660 TABOR Refund is processed soon, Check the claim status and Eligibility - IPTC
TABOR Refund

$1,660 TABOR Refund is processed soon, Check the claim status and Eligibility

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TABOR Refund : As the tax season unfolds in Colorado, residents are eagerly anticipating the upcoming Taxpayer’s Bill of Rights (TABOR) refund, with some eligible taxpayers set to receive up to $1,660.

This substantial refund is part of Colorado’s unique constitutional provision that requires the state to return excess revenue to taxpayers. In this comprehensive guide, we’ll delve into the details of the 2025 TABOR refund, including eligibility criteria, how to check your claim status, and the overall process.

Understanding TABOR Refunds

The Taxpayer’s Bill of Rights, commonly known as TABOR, is a constitutional amendment approved by Colorado voters in 1992. This amendment limits the amount of revenue the state government can retain and spend. When the state collects more revenue than the TABOR cap allows, the excess must be refunded to taxpayers.

Key Points About TABOR:
  • TABOR refunds are triggered by excess state revenue, not individual overpayment of taxes.
  • The refund amount varies each year based on the state’s revenue and the chosen refund mechanisms.
  • Refund methods can include direct payments, tax rate reductions, and other mechanisms determined by the state legislature.

2025 TABOR Refund Overview

For the 2024 tax year (refunded in 2025), Colorado is implementing multiple TABOR refund mechanisms:

  1. Sales Tax Refund: This is the primary mechanism for the $1,660 refund mentioned.
  2. Income Tax Rate Reduction: A temporary reduction from 4.40% to 4.25% for all taxpayers.
  3. Property Tax Reimbursement: An additional mechanism primarily affecting counties.

Sales Tax Refund Details

The sales tax refund is the most significant component for individual taxpayers. The refund amount is based on adjusted gross income (AGI) and filing status. Here’s a breakdown of the refund levels:

Adjusted Gross Income Range 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

Note: The maximum refund of $1,660 is achieved when two high-income individuals file jointly, each receiving $830 for a total of $1,660.

TABOR Refund Eligibility Criteria

To be eligible for the 2025 TABOR refund, you must meet the following criteria:

  1. Residency: You must be a full-year resident of Colorado during the 2024 tax year.
  2. Age: You must be at least 18 years old as of December 31, 2024.
  3. Filing Status: You must file a 2024 Colorado Individual Income Tax Return or a 2024 Property Tax/Rent/Heat (PTC) Rebate Application.
  4. Filing Deadline: Your return or application must be filed by October 15, 2025.
Special Considerations:
  • Part-year residents and non-residents are not eligible for the sales tax refund.
  • If you’re not required to file a Colorado tax return due to low income, you may still be eligible if you file a return specifically to claim the refund.

TABOR Refund How to Claim Your TABOR Refund

Unlike previous years where separate checks were issued, the 2025 TABOR refund will be combined with your regular tax refund or applied to any tax you owe. Here’s how to claim your refund:

  1. File Your Taxes: Complete and submit your 2024 Colorado Individual Income Tax Return (Form DR 0104) by October 15, 2025.
  2. PTC Applicants: If you’re claiming through the Property Tax/Rent/Heat Rebate program, submit the PTC application (Form DR 0104PTC) by the same deadline.
  3. Automatic Processing: Once your return is filed, the Colorado Department of Revenue will automatically calculate and include your TABOR refund.

Important: Unlike the 2022 Colorado Cash Back program, no separate application or check will be issued for the TABOR refund. It will be processed along with your regular tax return.

TABOR Refund Checking Your Claim Status

After filing your return, you can check the status of your refund, including the TABOR component, through the following methods:

  1. Online: Visit the Colorado Department of Revenue’s Revenue Online portal (www.colorado.gov/revenueonline).
    • Go to the “Refund Resources” section.
    • Choose “Where’s my Refund for Individuals.”
    • Enter your personal information and refund amount.
  2. Phone: Call the Colorado Department of Revenue at (303) 238-7378.

Note: Refund status information is typically available 7-10 business days after electronically filing your return, or 4-6 weeks after mailing a paper return.

TABOR Refund Processing and Payment Timeline

The processing and payment of TABOR refunds follow this general timeline:

  1. Filing Period: January 1, 2025 – October 15, 2025
  2. Processing Time:
    • E-filed returns: 7-10 business days
    • Paper returns: 4-6 weeks
  3. Refund Issuance:
    • Direct deposit: 1-2 weeks after processing
    • Paper checks: 2-3 weeks after processing

Important: The actual receipt of your refund may take longer depending on various factors, including the accuracy of your return and the volume of returns being processed.

TABOR Refund Potential Delays and Issues

Several factors can delay your TABOR refund:

  1. Errors on Your Return: Inaccuracies or missing information can lead to processing delays.
  2. Identity Verification: The Department of Revenue may require additional steps to verify your identity.
  3. Tax Liabilities: Outstanding tax debts or other state liabilities may be deducted from your refund.
  4. High Volume Periods: Delays may occur during peak filing times, typically early in the tax season and near deadlines.

If you experience a significant delay, contact the Colorado Department of Revenue for assistance.

Impact of the Income Tax Rate Reduction

In addition to the sales tax refund, all Colorado taxpayers will benefit from a temporary income tax rate reduction:

  • The state income tax rate will decrease from 4.40% to 4.25% for the 2024 tax year.
  • This reduction applies automatically to all taxpayers and does not require any additional action.

Special Considerations for High-Income Taxpayers

For taxpayers in the highest income bracket (AGI over $302,001 for single filers or $604,002 for joint filers):

  • The maximum individual refund is $565 for single filers.
  • Joint filers can receive up to $1,130 ($565 each).
  • These amounts are in addition to the benefits from the income tax rate reduction.

Frequently Asked Questions

  1. Q: Do I need to do anything special to receive the TABOR refund?
    A: No, simply file your 2024 Colorado tax return by October 15, 2025. The refund will be automatically calculated and included.
  2. Q: What if I don’t typically file a Colorado tax return?
    A: If you meet the age and residency requirements but aren’t required to file due to low income, you may still file a return to claim the refund.
  3. Q: Can I receive my TABOR refund separately from my regular tax refund?
    A: No, for the 2025 refund, TABOR amounts will be combined with your regular tax refund or applied to any tax owed.
  4. Q: How does the income tax rate reduction affect my refund?
    A: The rate reduction is separate from the sales tax refund. It will reduce your overall tax liability for 2024, potentially increasing your refund or decreasing the amount you owe.
  5. Q: What if I moved to Colorado partway through 2024?
    A: Unfortunately, part-year residents are not eligible for the sales tax refund portion of TABOR, but you will benefit from the reduced income tax rate for the portion of the year you were a resident.

TABOR Refund Conclusion

The 2025 TABOR refund represents a significant financial boost for many Colorado residents, with some eligible for up to $1,660. By understanding the eligibility criteria, claim process, and potential timelines, you can ensure you receive the refund you’re entitled to. Remember to file your 2024 Colorado tax return by October 15, 2025, and keep an eye on your refund status through the provided channels.

As Colorado continues to navigate its unique TABOR requirements, these refunds serve as a reminder of the state’s commitment to fiscal responsibility and taxpayer rights. Whether you’re receiving a few hundred dollars or the maximum amount, the TABOR refund is a welcome addition to many Coloradans’ financial picture in 2025.

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