What the CO Dept. of Revenue gave may have taxable consequences

 February 10, 2023

The Internal Revenue Service is telling millions of taxpayers, including those in Colorado, who received special state tax refunds or payments to delay filing their 2022 taxes.

“There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex,” the IRS said in a statement. “We expect to provide additional clarity for as many states and taxpayers as possible next week.”

The IRS said it is “aware of questions” surrounding the relief efforts that were crafted by states in different ways and under different rules.

For Colorado taxpayers, this is last year’s TABOR refund program named Colorado Cashback, which sent $750 in the late summer.

Colorado has also delayed processing returns and launching its free online filing service as it works through the impact of the TABOR refunds as well.

State tax refunds are expected to be announced by the end of this week for people who have already filed, and the Revenue Online service is expected to be available by the end of the month.

related posts: