Great news for people who live in Colorado: thanks to the Taxpayer’s Bill of Rights (TABOR), you will get your tax returns again in 2025.
According to a recent report from the Coloradoan, the state has brought in an amazing $1.4 billion more than what is allowed by TABOR rules. Along with this, the state is also going to return an extra $289 million that wasn’t refunded enough before.
Stay up to date on the latest news if you want to know how much you’ll get back from TABOR in 2025 and when will you get it. The refunds are supposed to be given out in 2025 for the fiscal year 2023–2024, but it’s important to keep in mind that future state budgets could be tighter, which would make refunds after this time period unclear.
A lot of people want to know, “How do I get my TABOR refund?” Is a check going to be sent?” Colorado sent checks as returns in the fall of 2022, but that was the only time that happened. A manager of audits named Maya Rosochacova says that these returns will be sent back to taxpayers in three ways:
- Direct Deposits to Bank Accounts
- Paper Checks
- Prepaid Debit Cards
The program to reimburse local governments for property tax exemptions is a big step toward helping certain groups with their money, like Gold Star spouses, older people, and veterans with disabilities. This careful action makes sure that people who have served or are in dangerous situations get the help they need.
Temporary Income Tax Rate Reduction
Taxpayers can take advantage of a great chance because the income tax rate will temporarily drop from 4.45% to 4.25% for refunds given in 2025. This decrease is handled through the normal income tax filing process, which helps a lot of people.
Six-Tier Sales Tax Refund Mechanism
A new six-tier system for sales tax refunds has been put in place. It is meant to give refunds to taxpayers based on their adjusted gross income. It is also handled through the income tax filing system if the refund is more than $15 per person. The amount of the return changes based on income, which makes sure that everyone is treated fairly.
What Refund Can You Expect?
Beyond the tax savings from the reduced income tax rate of 4.25%, taxpayers can anticipate the following refunds through the six-tier mechanism:
Adjusted Gross Income: Single Filers / Joint Filers
- Incomes 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
All of these steps will help a lot with money, making sure that the people in our community who need it the most get the help and rewards they deserve.
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