Colorado TABOR refunds will NOT be taxed by the IRS
By Big Mic on January 10, 2024
Despite raising the idea of potentially taxing state tax refunds like Colorado’s TABOR tax refunds, the IRS has decided we will not have to pay federal income taxes on those refunds.
According to The Denver Post, Colorado Governor Jared Polis and congressmen Michael Bennet offices said the IRS made the decision to not break decades of precedent and tax those refunds for now.
TABOR, which stands for Taxpayer’s Bill of Right, is an amendment passed in 1992 requiring excess revenue be refunded back to Colorado tax payers. For 2023, full-year single filers can claims $800 and joint filers can claim $1,600.
Don’t go rushing to file your taxes yet because the IRS announced this week that they will be accepting tax returns beginning January 29th.