TABOR Refund

Have you received your TABOR refund yet? If not, it isn’t too late. All full-time Colorado residents who file 2021 tax returns with the State of Colorado and who cannot be claimed as a dependent on another person’s tax return are eligible to receive the TABOR refund. This is true even if you do not have any taxable income. And this year, the TABOR refund is a whopping $750 for individual tax filers and $1,500 for those who file jointly with their spouse. Are you interested in receiving this refund? If so, continue reading this article.

The Tax Payers Bill of Rights (TABOR) is a provision of the Colorado constitution. Voters passed this constitutional amendment in 1992. In a nutshell, TABOR limits the amount of revenues that the State of Colorado can keep. If revenues exceed expenses, then generally that excess revenue must be refunded to the taxpayer. That refund comes in the form of a tax refund. This means that eligible Coloradoans can receive additional refunds on state taxes in years in which revenues exceed expenses. Lucky for you, this year is one of those years.

If you are interested in claiming the TABOR refund, there are two ways in which to claim it. The first way is by filing a 2021 tax return. As previously mentioned, even if you do not have taxable income, filing a tax return indicating your nontaxable income will suffice for the TABOR refund. For example, if you only receive Social Security income, that suffices for TABOR refund purposes. However, the Colorado Department of Revenue will not accept a tax return that has all zeroes. That is why it is important to seek a tax professional when filing taxes to claim the TABOR refund.

The second way in which to claim the TABOR refund is to file a Colorado Property Tax/Rent/Heat Credit (PTC) Rebate with the State of Colorado. If that sounds challenging, it really isn’t. It is a simple one-page form that older adults and disabled individuals who meet the requisite income limits can use to get a rebate of property taxes, rent, or utilities paid last year. This year the income limits for the PTC rebate are $15,831 if filing single and $21,381 if filing jointly. However, the PTC rebate is prorated based on when you file it, so it is better to file it as soon as possible.

If you are interested in taking either of these two steps to claim the TABOR refund, look no further than Benefits in Action. We are a Volunteer Income Tax Assistance (VITA) tax site operating under the umbrella of the Tax Help Colorado program. This means we offer free tax assistance to low-income Coloradoans who meet the VITA program requirements. Those requirements include having a gross income of less than $57,000 a year, not having a business that operates at a net loss, and not having more than $35,000 in business expenses. They also include not claiming certain credits and deductions such as the Health Coverage Tax Credit. 

If you qualify for the VITA tax program, you can contact Benefits in Action at 720-221-8354 or via email at info@benefitsinaction.org. Our intake coordinators can schedule an appointment for you and discuss the documents you will need at the time of the appointment. These documents include, but are not limited to, your valid photo ID, your social security card, the social security card for everyone in your tax household, and documentation proving your income and expenses. This documentation includes W-2s, 1099s, social security statements, proof of interest, dividend or retirement income, and any expenses you intend to claim or itemize. 

We are scheduling appointments on Mondays through Thursdays from 11:00 am to 3:00 pm. We also have walk-in hours on Fridays from 11:00 am to 3:00 pm. We are taking appointments and walk-ins until October 17, 2022.

Does this information make you interested in filing your taxes or claiming the PTC rebate? If so, there are a few things to keep in mind. First, identify the documents you will need to bring with you when seeking tax assistance and make sure you bring them to your tax site. Second, if you are married and filing jointly, make sure that both you and your spouse come to the tax site, as both of you will need to sign important documents, including the actual tax return. Finally, please do not wait until the last minute to start your taxes. The sooner you file the taxes, the better. 

Thank you for reading, and good luck this tax season. For more information, you can call Benefits in Action at 720-221-8354 or email us at info@benefitsinaction.org. We are happy to help you with your tax-related needs.