The festive season will bring some extra cheer to residents in some states. The absence of federal stimulus checks forced states to dig into their resources to support their citizens deal with the record inflation. The generous American Rescue Plan Act funds allocated to states and money from surplus budgets have come in handy for the states to stand by their residents as prices went through the roof in 2022.
While much of the payments have been made by the third quarter of 2022, several states have timed their tax rebate payments for the festive season. And among the most generous has been Colorado. The Centennial state has mailed a $750 stimulus check to individual state income tax filers, while married couples filing jointly received double that. Virtually all state taxpayers have been in line for the stimulus check that has been dubbed the Colorado Cash Back.
The Colorado Cash Back Stimulus Check
Colorado Children’s Campaign director, Sarah Barnes said that the economic impact of the pandemic and its aftermath has been particularly severe for families and individuals in Colorado. The rising cost of living has made matters worse for residents as they struggled to cope with record inflation.
The director of the non-partisan economic prosperity initiative advocacy group says that the most impactful way to help residents is by providing direct stimulus checks and supporting vulnerable families.
The Colorado Cash Back stimulus checks have been hitting mailboxes across the state for some time now. Eligible income tax filers who filed their Colorado income tax return or even applied for a property tax, rent, or head credit rebate (also known as the PTC Rebate) by June 30 this year have normally received their cash-back stimulus check by September.
Residents who applied for and received an extension on their tax returns and filed their income tax return by the extended filing date on October 17 will receive their stimulus check in December 2022 or January 2023.
Eligibility For The 2022 Colorado Stimulus Check
The Colorado cash-back program was initiated by an amendment in the state Taxpayer Bill of Rights (TABOR). This unique law stipulates that the state is required by law to return excess state revenues to Colorado tax filers.
The fund was originally slated to be around $400 for every taxpayer. But the strong revenue collection by the state in 2021 has ensured that the TABOR stimulus check payments were increased to a generous $750 for every individual taxpayer. Married couples who file their income tax jointly will receive a $1,500 stimulus check.
While most state and even federal stimulus checks are restricted to individuals and families within a certain income bracket. But the TABOR payments initiated by the Colorado government do not come with any form of restriction on earnings. There is also no restriction on the composition of the family of beneficiaries. The program also does not require taxpayers to have dependents for them to qualify.
There are only a few simple criteria for qualifying for the Colorado state stimulus check. The resident should be at least 18 years as of December 2021 and also be a resident of the state throughout 2021. Finally, potential beneficiaries must file their 2021 Colorado state income tax return or apply for the PTC Rebate.
Residents who have already filed their Colorado income tax return for 2021 but moved out of the state this year are still eligible for the TABOR stimulus check.
Significantly, residents who do not owe taxes or who are claimed as a dependent by someone else will be eligible for the stimulus check if they have filed their income tax returns for 2021. The logic behind this is that the TABOR payments are sales tax refunds, and no refunds on income tax, as explained by the revenue department of Colorado.
Residents who receive child support payments, back taxes, and various other government debts could have such dues adjusted by the government to repay such obligations.
Colorado Taxpayers In Line For Refund In 2023 Also
Even though the direct stimulus check received approval only for the 2021-2022 fiscal year, Colorado residents could expect a repeat of the TABOR refunds next year and even in the future as the state is expecting a budget surplus for three successive fiscal years.
But instead of stimulus checks, resident taxpayers will either get a refund check in the normal course of events or have to pay fewer taxes. a second major difference between the TABOR refunds this year and in the future is that the refund amount in the future will be linked to the AGI of the income tax filer.
Chris Hansen, the Democratic Senator from Colorado and the co-chairman of the Joint Budget Committee said that the state will begin issuing income tax refunds in 2023 even as people start filing their income tax returns that are due on April 18 next year.
Tracking Your Colorado Stimulus Check
Residents of Colorado who have filed their income tax returns by June 30 this year should expect their Colorado Cash Back by September 30. Residents who are yet to file their income tax return or those who have filed an application seeking an extension of their taxes should have filed their returns by October 17 this year to be eligible for the TABOR refunds. The payments should reach them by January next year.
One major drawback is that there is no way a filer can track their refund through the revenue online portal of the state. But taxpayers have the alternative of calling the Colorado Cash Back call center at 303-951-4996 for other queries.
Taxpayers will receive their stimulus check at the address entered in the records of the state tax authorities, the Colorado Dept. of Revenue. Taxpayers who wish to update their mailing address can do so online through the revenue portal or through the paper route by completing and sending by mail Form DR 1102.
Cashing In On The Colorado TABOR Stimulus Check
Colorado has taken some steps to prevent fraud and toward this end, the state has fallen back on the tried and tested paper checks and is not sending the payments through direct bank transfers.
The stimulus checks can be cashed by the beneficiaries at their bank. Taxpayers who do not have a bank account can take the TABOR stimulus check to any Wells Fargo location to cash it free of any banking charges.
Several stores, including Walmart, have also cash check facilities for customers. But certain retail locations have reportedly declined to accept the Colorado Cash Back stimulus checks.