Colorado taxpayers : Colorado Governor Jared Polis announced Tuesday, June 21 , from his office. Governor’s Office that in late August, tax filers who are individuals are expected to receive tax refunds totaling $750, while joint filers can anticipate $1,500.
The money is derived from a clause in Colorado Taxpayer Bill of Rights ( TABOR) that grants the state legislature the authority to decide how to return the tax revenues that are not used to pay back those who have paid it.
Polis first made the announcement of the cashback incentive on April 1st of the year. The governor announced that individual filers would get a $400 rebate while joint filers will get $800. But, there is a higher-than-expected tax refund was received at the close of the fiscal year the Colorado Sun reports that there’s $1 billion in tax revenue that is in over that TABOR cap than previously anticipated — which means Coloradans will receive more money from their tax rebate.
Taxpayers who submitted their 2021 tax returns by June 30 are eligible get the tax rebate. Polis confirmed that taxpayers will be able to receive the cash in August.
“It’s a weird time, because our economy is doing so well, and yet everybody is feeling the pressure of increased prices,” Polis declared. “And so the fact that we’ve done so well has allowed us to increase the amount of this refund.”
Polis stated that Colorado’s unemployment rate is only 3.5 percent, which is just a bit lower that the average national rate in addition, the state reclaimed more jobs than it lost in the pandemic.
“All of this is in the face of rising costs, which is why we want to get this money out to you as quickly as possible, because you know what to do with it better than the government,” Governor said.
Treasurer Dave Young, speaking Tuesday in a speech, cited the rise of rent, inflation and medical expenses as the primary factor in the rapid payment of the rebate. It is important to note that the cash will be distributed prior to the election in 2022, which is scheduled for November.
“We continue to hear from folks who are desperately struggling simply to make ends meet,” Young stated. “More and more families are relying on food banks to feed their families.”
This year Rocky Mountain PBS spoke to Coloradans on how they intend to use the funds. One person said they’d use the funds towards their student loan debt, whereas others were planning to take a go on vacation.
The people we spoke to are pleased to hear that individuals are getting $750 for their fliers instead of $400.
“It’s better than not having an extra $400, but it doesn’t go far enough,” said Thomas Law, a Denver resident and a worker in Union Station, in an interview in April. “It’s not a lot in the grand scheme of things, as an adult in Denver.”
The Internal Revenue Service is telling the millions of people who are taxpayers. This includes residents of Colorado who were granted specific state tax refunds or payment to put off the filing of their taxes for 2022.
“There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex,” the IRS stated in an announcement. “We expect to provide additional clarity for as many states and taxpayers as possible next week.”
The IRS stated that it was “aware of questions” surrounding the relief initiatives that were developed by states in various ways and according to different rules.
For Colorado taxpayers the last time this happened was in the TABOR refund program, which was dubbed Colorado Cashback that refunded $750 to taxpayers in the summer of late.
Colorado has also pushed back processing returns and has also launched its online filing service for free while it is analyzing the consequences of the TABOR refunds, too.