Everything You Need To Know About The Colorado Stimulus Check 2022

Numerous states are issuing stimulus checks and tax rebates to their residents, but few have been as generous as Colorado. The Centennial State is mailing $750 checks—$1,500 for married couples—to virtually all its taxpayers in a program dubbed Colorado Cash Back.

“Many Colorado families are still feeling the economic impacts of the pandemic, combined with the rising cost of living in the state,” says Sarah Barnes, director of family economic prosperity initiatives for nonpartisan advocacy group Colorado Children’s Campaign. She says providing direct payments is one of the most impactful ways to support state families.

Most Colorado Cash Back checks should have already hit mailboxes. Eligible taxpayers who filed their Colorado state income tax return or applied for a property tax, rent, or heat credit rebate (known as the PTC Rebate) by June 30, 2022, should have received their Cash Back check by September 30.

If you got an extension on your tax return for October 17, 2022, you’ll receive your Cash Back check by by January 31, 2023.

Here’s everything you need to know about who is getting money and why.

Colorado Stimulus Check 2022 Eligibility and Program Details

The cash back payments were made possible through an amendment to the state’s Taxpayer’s Bill of Rights (TABOR) which requires the Colorado government to return excess state revenues.

Originally, refunds were expected to be $400 per taxpayer, but thanks to Colorado’s strong economy, the TABOR payments were boosted to $750 per taxpayer. Married couples filing jointly will receive $1,500.

While many states have put income limits or other restrictions on who can receive stimulus checks, TABOR payments don’t come with any such strings. They also don’t require taxpayers to have dependents in order to qualify. Instead, anyone meeting the following criteria will receive a Colorado Cash Back check:

• Be at least 18 years old as of December 31, 2021
• Were a Colorado resident for all of 2021
• File a 2021 Colorado state income tax return or apply for a Property Tax/Rent/Heat Credit (PTC) Rebate

If you filed your 2021 Colorado tax return but moved out of the state in 2022, you’re still eligible to get a check.

Even those who don’t owe taxes or who can be claimed as a dependent by someone else will receive a check so long as they file a 2021 Colorado income tax return. That’s because the TABOR payments are actually sales tax refunds, not income tax refunds, according to a Department of Revenue spokesperson.

If you owe back taxes, child support or another government debt, your payment could be intercepted to pay that obligation.

Taxpayers Will Likely Get Refunds In The Coming Years

While direct payments were only approved for fiscal year 2021-22, taxpayers can expect to receive TABOR refunds in the future as Colorado is expected to have a budget surplus over the next three fiscal years.

Instead of checks, eligible taxpayers will either pay less in taxes or get a refund check. Another key difference between this year’s TABOR refund and future refunds is that the refund amount will depend on earnings.

TABOR Refunds by Earnings Tax Year 2022

Source: Colorado Legislative Council Staff

According to Democratic state Sen. Chris Hansen, co-chair of the Joint Budget Committee, the state will issue tax refunds next year as people begin filing their tax returns which are due on April 18, 2023.

Colorado Stimulus Check Tracking

If you filed your 2021 Colorado state income tax return by June 30, 2022, your Colorado Cash Back check should arrive by Sept. 30, 2022. Those who haven’t filed yet or who have an extension need to submit their return by Oct. 17, 2022 to receive a TABOR refund. Those checks will be mailed by Jan. 31, 2023.

Unfortunately, there’s no way to track your refund through Colorado’s Revenue Online portal, although taxpayers can call the Colorado Cash Back Call Center at 303-951-4996 with other questions.

Checks will be sent to the address on file with the Colorado Department of Revenue. If you need to update your address, you can do so through the Revenue Online portal or by completing and mailing Form DR 1102.

Cashing Colorado TABOR Stimulus Checks

To prevent fraud, the state is only issuing checks and will not be sending payments via direct deposit. Checks can be cashed at taxpayers’ normal financial institutions. Those who don’t have a bank account can take their check to any Wells Fargo location, where it can be cashed without a fee.

Some stores, such as Walmart, will also cash checks for customers, but there have been reports of certain retail locations declining to accept Colorado Cash Back checks. The Department of Revenue calls those incidents “isolated” and encourages people to use their financial institution or Wells Fargo to cash checks.

“Family economic security and prosperity is the cornerstone of child and family well-being, and we must adequately support families’ ability to get back on their feet and thrive,” Barnes says.

While the TABOR refunds are a start, she encourages lawmakers to continue to pursue equitable tax policies to fund public programs and help residents recover from recent high inflation and pandemic-related economic instability.

More From Advisor

• OPEC’s Oil Production Cut Will Cause More Pain At The Pump
• The EV Charger Tax Credit Gets A 10-Year Extension—And A Few Upgrades
• Striketober Is Back As Workers Fight To Close The Wage Gap

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.