In the midst of so much economic uncertainty, the prospect of a new stimulus cheque in the United States has rekindled the interest of thousands of people. And, while the federal government has not confirmed any $800 payments for April 2025, certain states are taking strong steps to assist their citizens. One of them is Colorado, which, through the TABOR program, might offer significant refunds next spring.
TABOR, which stands for Taxpayer’s Bill of Rights, has become an important mechanism for transferring money back into taxpayers’ pockets during budget surpluses. On this occasion, the state intends to distribute almost $1.4 billion, which represents the surplus for the fiscal year 2024. This is not only encouraging news, but it also provides much-needed relief to countless families who are still recovering from the pandemic’s most difficult years.
Payments might total up to $1,600 for people filing jointly, a large amount given that they originate from the state’s own financial balance rather than a federal budget. Of course, certain standards must be completed, and all interested parties should be aware of the new laws.
Who can receive the TABOR refund in 2025?
The TABOR program no longer automatically issues refunds each year. It is now only activated if the state surplus is deemed extremely high, like in 2025. On this occasion, Colorado residents have access to two types of support.
Income tax reduction: All taxpayers who file their state returns for the 2024 tax year will receive a temporary rate reduction from 4.40% to 4.25%.
Sales rebate: Those who lived in Colorado in 2024 can get this payment provided they complete a state tax return or a PTC (Property/Rent/Heat Tax Rebate) application by October 15, 2025.
The Colorado Department of Revenue will decide the amount each person receives based on their adjusted gross income and other variables. The maximum amount for those filing jointly is $1,600, whilst persons filing individually receive less.
To be eligible for the TABOR rebate, you must fulfil the following three requirements:
- Have resided in Colorado for at least half of the 2024 tax year.
- Be at least 18 years old as of January 1, 2025.
- By April 15, 2025, you must have filed your state income tax return for 2024 or applied for a personal tax credit.
- The application must be submitted online using the official website of the state Department of Revenue. Before sending it, you must complete out the appropriate form, attach the needed papers, and ensure that all of the information is right.
TABOR is, without a doubt, one of the most important state-level resources available at the moment. Although it is not a government cheque, it does provide many people with a small economic boost that can go a long way.
