Understanding TABOR: The Taxpayer’s Bill of Rights
The Taxpayer’s Bill of Rights mandates that tax increases require voter consent and that excess revenue is returned to taxpayers.
Tax filing season has just over a month remaining, with both federal and Colorado state tax returns due by April 15.
The IRS reports it has processed nearly 37 million refunds totaling close to $125 billion as of February 28. The average refund stands at $3,382, reflecting a 6% increase from the previous year.
Many taxpayers appreciate receiving a significant lump sum, although these refunds result from over-withholding during the tax year. Instead of letting that money sit with the government, it could have been invested to earn a return.
No matter the size of your refunds, here’s what you should know to expedite the process and keep track of it until it reaches your mailbox or bank account.
Checking My Colorado State Tax Refund Status
Colorado began accepting tax returns later than usual this year, kicking off on February 21. In prior years, the process started as early as late January, but delays this year were attributed to changes in the tax code, according to earlier reports.
While the state does not provide specific timelines for processing returns, taxpayers can check their refund status on the Colorado Department of Revenue’s website. Look for the “Where’s My Refund for Individuals” link under “Refund Resources.” You’ll need your Social Security number or individual taxpayer identification number along with the refund amount as reported on your income tax return.
If you’re unsure of the claimed refund amount, you can also use a Letter ID from recent correspondence with the department regarding your income taxes.
For those who prefer to speak with someone, you can call the Colorado Tax Information Center at 303-238-7378. Note that you will need to provide the same identifying information as when checking online, and you may experience wait times.
When Will I Receive My Colorado State Tax Refund?
Typically, refunds issued via direct deposit are processed more quickly than those sent by mail, although the state does not specify exact timelines.
Refund checks generally take about seven to ten business days to arrive after mailing, but in some cases, it can take up to 30 days according to the Department of Revenue.
If you haven’t received your refund check within 30 days of the issued date in the state’s system, or if it gets lost, stolen, or destroyed, you can reach out to 303-238-7378 to request a refund reissue form.
Some refunds initially requested via Direct Deposit may be switched to a paper check due to the state’s identity verification processes.
IRS Layoffs as Tax Refund Season Begins
Thousands of IRS employees were laid off, primarily impacting President Biden’s hiring initiatives aimed at enforcing tax regulations on affluent taxpayers.
What is a TABOR Refund and How Can I Access It in Colorado?
Since its enactment in 1992, Colorado’s Taxpayer Bill of Rights (TABOR) restricts government revenue growth based on inflation and population increase. Any excess collection must be refunded unless voters permit otherwise. In 2024, state revenues surpassed expectations, leading to the necessity to refund $289 million from prior years along with an additional $1.4 billion.
The 2024 TABOR refunds will include reductions in state income tax obligations. Thus, for returns filed in 2025, taxpayers will benefit from a slightly decreased income tax rate along with flat sums credited based on their income level.
Refund amounts range from $177 to $565 for individuals and from $354 to $1,130 for couples filing together.
This portion of the TABOR refund will integrate into your overall state tax obligation, so if you were destined to receive a refund prior to the TABOR calculation, your refund will increase. Conversely, if you anticipated a tax bill, it may be reduced or compensated with a refund.
No tax liability is required to receive a TABOR refund; however, you must file a state tax return to qualify for it.
When Can I Expect My Federal Tax Refund?
Smart Ways to Utilize Your Tax Refund
Amy Wagner from Allworth Financial discusses the importance of managing your tax refund wisely.
Allworth Financial
Your filing method and the choice of how to receive your refund greatly impact processing times.
Returns filed electronically are generally processed within 21 days or less, while paper returns can take six to eight weeks. These timelines assume accurate completion and submission of forms along with proper documentation.
Direct deposit refunds typically arrive in your bank account within five days, while paper checks through the mail may take weeks.
Tracking Your Federal Tax Refund
The IRS provides both a website and a mobile app for tracking refunds.
To use either, you’ll need your Social Security number or individual taxpayer ID, your filing status, and the exact refund amount claimed on your return. The information is updated overnight.
Will IRS Layoffs Affect Tax Refund Processing Times?
While it remains uncertain, experts recommend filing your taxes as soon as possible to avoid potential delays.
Layoffs at the IRS and other government efficiency departments have targeted mainly probationary employees, affecting those with less than one or two years in their roles. This could lead to potential impacts on processing centers and in-person services, as reported by USA TODAY previously.
