Many people in the United States are hoping for financial respite as prices rise and the economy continues to struggle. While the federal government has not verified any fresh $800 stimulus cheques for April 2025, the state of Colorado is stepping in to help its citizens.
Colorado plans to provide refunds of up to $1,600 in the spring of 2025 through a scheme called as TABOR (short for Taxpayer’s Bill of Rights). This money is not coming from federal funding, but from the state’s budget surplus for the fiscal year 2024.
Let’s look at what this entails, who qualifies, and how to receive the return.
What Is The TABOR Refund?
TABOR is a Colorado statute that mandates the state to return extra tax revenue to residents whenever there is a significant budget surplus. Colorado has a surplus of around $1.4 billion for the 2024 tax year, which will be returned to qualifying taxpayers.
This reimbursement does not occur automatically every year. It is only activated when the excess crosses a particular threshold—which 2025 meets.
How much will you get?
In 2025, the TABOR system will offer two basic sorts of refunds:
Temporary Income Tax Reduction
- On their 2024 state tax return, all Colorado taxpayers will see their income tax rate reduced somewhat, from 4.40% to 4.25%.
- Sales Tax Rebate
- Residents who meet all of the eligibility requirements can get a cash reward, which could be as much as $1,600 for joint filers.
- Individual filers will get a reduced amount based on their adjusted gross income and other variables determined by the Colorado Department of Revenue.
Who qualifies for the TABOR Rebate in 2025?
To qualify for this reimbursement, you must fulfil all three of the following requirements:
Lived in Colorado for at least part of the 2024 fiscal year
Be at least 18 years old on January 1, 2025.
File a 2024 Colorado state tax return or apply for the PTC (Property/Rent/Heat Tax Rebate) before April 15, 2025.
You must also submit your information online on the official Colorado Department of Revenue website. Be sure to:
- Fill out the online form.
- Attach all required paperwork.
- Please double-check your details before submitting.