Even as the largest of the state stimulus checks reach residents of various states well into the festive season, the Middle-Class Tax Rebate payments from the Golden State have created some confusion in the mind of residents. Debit cards have been issued as an alternative to paper checks in this round of state stimulus checks.
The Colorado stimulus check also called the Colorado Cash Back or the Taxpayer Bill of Rights (TABOR) in the constitution of the state is not strictly an inflation one-off inflation relief stimulus check payment.
The state limits the amount of revenue the state can retain and spend in each fiscal year. all revenue collected above this limit must be refunded to taxpayers unless the state gets a nod from voters to retain the amount.
The Colorado Cash Back stimulus check that residents received this year will continue into January 2023 and is a refund of state revenues that were collected and is above the limit set under the TABOR act in the 2020-2021 state fiscal year. by fixing the amount under the refund mechanism and as the state boasts of a strong economy, Governor Polis and his legislature are returning the rebates this year ahead of schedule.
The cash-back stimulus check is part of the state Senate Bill 22-233 and directs the Dept. of Revenue (DoR) to refund at least $750 this year to all qualified individual filers. For joint filers, the amount is double at $1,500 at least.
The refund is being paid based on their income tax returns or the PTC Rebate (property tax, rent, heat credit) that applicants have filed for 2021.
Beneficiaries for the Colorado stimulus check must be at least 18 years on or before December 31 last year. they should also be a resident of The Centennial State for the whole of 2021. They must also file income tax returns in Colorado for the tax year 2021. Residents who have moved into the state in 2022 are not eligible for the Colorado Cash Back.
Residents who qualify for the Colorado Cash Back by filing their income tax return for 2021 by June 30, 2022, received their stimulus check by September this year. those who sought an extension by applying for it can file their state income tax returns by October 17 this year. this is the maximum extension deadline and this group of individual and joint tax filers will get their stimulus check by the end of January next year.
The Colorado Cash Back should not be confused with the Great Colorado Payback. The earlier stimulus check is a one-off refund by the state from the excess revenue from the 2020-21 financial year.
The Great Colorado Payback, on the other hand, is an ongoing program from the Dept. of Treasury of the state and is given to help residents locate their unclaimed property. The details of the Great Colorado Payback are on the Treasure’s Unclaimed Property site.
Residents who were full-time residents of the state throughout 2021 and filed their income tax return by the stipulated date, but moved out in 2022 are still eligible for the Colorado Cash Back.
Residents who believe that they should get a Colorado Cash Back stimulus check but have not received it are advised to fill out a form, the Colorado Cash Back Refund Claim. This form is to claim the special TABOR refund allowed by Senate Bill 22-233, also known as the Colorado Cash Back. the department of revenue of the state should automatically send you the payments.
If you have not received the payment you need to fill out this form and request the department to review your eligibility. The department will issue a refund check if your application is accepted. If the department determines that you are not eligible for the payment, you will get a letter explaining the reason you have been denied the stimulus check. there will also be an instruction to help you protest the decision should you deem it necessary to contest the conclusion of the department.
You will also have to submit some documents with the application form. For joint filers, both applicants must submit individual copies. One of the documents should have your full name and photograph and can be either a driving license, a military ID card, your passport, or any other ID card issued by the government.
The second document must have the full name of the applicant, or applicants in case of a joint filer, and the address that is listed on the Colorado income tax return for 2021. The supporting documents can include a lease or rental agreement, water, cable, phone, water, or any other utility bill, a credit card or bank statement, or an insurance document or a payroll stub.
Reluctance Among Californians To Cash In Debit Cards
Millions of residents of the Golden State are getting their Middle-Class Tax Refunds through debit cards. But many have voiced apprehension about the legitimacy of this form of state stimulus checks and say it appears to be a scam. There have also been complaints about card charges for withdrawal and other uses.
Some recipients are wary of giving out the required 6 digits of their Social Security number that is necessary to activate the debit card. The cards have been issued by Money Network, a New York-based bank that handles the payments and the service. By November 11, over 2.5 million debit cards have already been issued.
Residents say that as the card company is located outside California in Wisconsin and customers are being serviced from Georgia, they are wary of giving out personal information and the possibility of it being misused.
Residents apprehend that if a scammer gets hold of those numbers, they can steal their identity. By activating the card, the residents automatically open an account at the New York Community Bank, which has sent a notice to residents along with the tax rebate debit card.
Residents say that by using the card, they permit the bank to access their purchase history. They also get their details and other details along with their purchasing behavior. But the bank has assured that no personal information will be shared by them.
