The state of Colorado is proposing a bill that would give retired residents an additional $1,400 in tax credits for the years 2023 and 2024.
This bill is aimed at providing support to those on a fixed income, who have been unable to keep up with the rising cost of living. The eligibility criteria for this tax credit are clear, and if passed, the credit will be refundable, meaning those who owe less in taxes than the credit amount will receive a refund for the difference.
Benefits of the Tax Credit:
The proposed tax credit would be available to Colorado residents who meet certain eligibility criteria. To qualify, one must be a full-time resident of Colorado, and be at least 55 years or older by the end of 2023 and 2024. Additionally, one must have retired from a position with a Colorado state public pension plan or be a retiree of a public pension plan administered by a local Colorado government.
Refundability of the Tax Credit:
The proposed bill states that the tax credit would be refundable, meaning that if one owes less in taxes than the credit amount, they will receive a refund for the difference. This is a significant benefit for those who may not be able to take advantage of the full amount of the tax credit.
Current Status of the Bill:
The bill is currently making its way through the House of Representatives and has been assigned to the House Finance Committee. However, there is no scheduled date for a hearing at this time. The bill has the potential to affect approximately 315,000 retirees, based on a similar bill that was passed in 2022.
Other Tax Credits and Rebates:
In addition to the proposed tax credit for retirees, Colorado residents are also eligible for one-time checks worth up to $1,500. The final batch of these checks will be distributed before the end of the month. Meanwhile, in Montana, state officials have proposed property tax rebates worth $500 million, which would give homeowners $1,000 for their primary residence in 2023 and 2024, totalling $2,000. This proposal is possible due to the $2.4 billion state surplus. In Massachusetts, residents have received checks worth up to 14 percent of their 2021 income, thanks to the extra $3 billion collected by the state.
Conclusion:
As tax season begins, it is important to keep an eye out for any tax credits or rebates that one may be eligible for. The proposed bill in Colorado, if passed, would provide a significant benefit to retired residents in the form of a $1,400 tax credit for the years 2023 and 2024. It is essential to check if one meets the eligibility criteria and take advantage of any tax benefits that may be available.
What Are Your Thoughts?
Are you a retired resident of Colorado? If so, do you think you would be eligible for the proposed tax credit? Have you received any other tax credits or rebates recently? What is your experience with navigating the tax system and taking advantage of tax benefits?
Share your thoughts and experiences in the comments below!
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