Good news, Colorado! The state is sending out refunds of up to $1,600 this year, and many residents are already wondering when that money will hit their bank accounts. If you’re eligible, this extra cash could help with groceries, rent, or just give you some breathing room in your budget. Let’s break down who qualifies, when you’ll get paid, and how to make sure you don’t miss out.
Why Is Colorado Giving Out Refunds?
These refunds come from the Taxpayer’s Bill of Rights (TABOR), a rule in Colorado that limits how much money the state can keep. If the government collects more revenue than it’s allowed to spend, it has to return the extra money to taxpayers. This year, the state hit that limit, which means individual taxpayers will get $800, and couples filing jointly will get $1,600.
It’s not the first time Colorado has issued TABOR refunds, but this year’s payments are coming at a time when inflation is still squeezing wallets. The extra cash couldn’t come at a better time.
Who Qualifies for the $1,600 Refund?
To get the refund, you need to meet a few basic requirements:
- You must be a Colorado resident.
- You need to have lived in Colorado for the entire 2023 tax year.
- You must be at least 18 years old by December 31, 2023.
- You must file a 2023 Colorado state tax return or apply for the Property Tax/Rent/Heat Credit (PTC) Rebate.
Even if you don’t owe any state taxes or normally wouldn’t file, you can still qualify for the refund if you submit a PTC rebate application or file a simple tax return. This means seniors, low-income residents, and others who don’t usually file taxes can still get their refund.
When and How Will You Get Your Refund?
The timing of your refund depends on when you file your 2023 state income tax return or PTC rebate application:
- If you file by April 15, 2024, and don’t owe any taxes or aren’t claiming a refund of wage withholding, your refund will be processed after this deadline.
- If you file by the extended deadline of October 15, 2024, your refund will be issued later in the year.
How Will the Refund Be Paid Out?
The easiest way to get your refund quickly is through direct deposit. If you have direct deposit set up for your tax refunds, the money will be deposited straight into your bank account. If not, you’ll get a paper check in the mail.
There’s no need to fill out a special form or application—if you file your taxes or PTC rebate correctly, the refund process is automatic.
Why This Refund Matters Right Now
Let’s face it—life has been expensive lately. With the cost of food, gas, and utilities climbing, getting an extra $800 or $1,600 could make a real difference for many households.
Here are a few smart ways to use your refund:
- Pay off debt: Reducing credit card balances or loan payments could save you money on interest.
- Build an emergency fund: If you don’t have at least 3-6 months of expenses saved, this refund is a great way to start.
- Cover everyday expenses: Groceries, rent, or utility bills—using the refund for essentials can help free up other parts of your budget.
Watch Out for Scams
Unfortunately, whenever money like this is involved, scammers aren’t far behind. You may receive phone calls, emails, or texts claiming you need to provide personal information to get your refund. Don’t fall for it.
The state will never contact you out of the blue asking for sensitive information like your Social Security number or bank account details. If you receive anything suspicious, report it to the authorities.
How to Stay on Track
To make sure you get your refund on time, follow these tips:
- File your state taxes early: The sooner you file, the sooner you’ll get paid.
- Set up direct deposit: Double-check that your bank information is accurate to avoid any delays.
- Stay informed: Visit the Colorado Department of Revenue’s website for updates and official information.