Millions more Coloradans will soon get $750 stimulus checks in the mail as part of the Colorado Cashback program, which was approved by state lawmakers earlier this year. The Taxpayer's Bill of Rights (TABOR) restricts the amount of income that the state may keep and spend each fiscal year.
Any money that exceeds the limit, which is established by a formula that takes into account population growth and inflation, must be repaid to taxpayers unless voters pass a measure that allows the state to keep the surplus.
Direct checks to Colorado households are one way the $3.5 billion excess from the fiscal year 2021/2022 is being repaid. Senate Bill 22-233 moved the payout date from next spring to this summer and provides the same amount to all qualified Coloradans in a lump sum.
Individual filers will receive a payment of $750, while joint filers will receive a check for $1,500. Those who resided in Colorado for the entire year of 2021 and reached the age of 18 by December 31, 2021, are eligible for the payout.
Even if they did not earn taxable income, residents must file a tax return to get the refund. They must have submitted a tax return or applied for a property, rent, or heat credit refund by June 30 this year to get the payment in August or September.
Those who asked for an extension and submitted their tax returns by the October 17 deadline will be paid by January 31, 2023. Residents should confirm that the Colorado Department of Revenue has their current address on file, as the checks will only be mailed, as per Newsweek.
Who Is Eligible for $750 Stimulus Check?
TABOR reimbursements are not limited to this year. They occur anytime the state's revenue exceeds the constitutional limit. The constitution, however, does not define how reimbursements are to be distributed, therefore, the legislature has broad latitude in this regard. This year, lawmakers chose to give one-size-fits-all refund checks.
Bigger income earners would normally get a higher return than lower income earners since they pay more in taxes. However, because of state legislation, everyone receives the same amount. According to a neutral legislative council staff fiscal note, the state's top earners, those making $265,000 or more, are losing nearly $1,000 per person.
On the opposite end of the income range, the lowest earnings get around $211 more per person than they would have under the new law. This excludes any savings from property tax relief or income tax decreases.
This year, in addition to the checks, there will be some property tax reductions for seniors and veterans, as well as a temporary income tax decrease to pay for all of the TABOR refunds.
Anyone 18 or older who lived in the state for the whole previous year and filed a tax return for the 2021 tax year by June 30 is eligible to receive a payment. Those who received a tax extension until Oct. 17 and submitted their returns by that date will also receive a payment, although it will arrive later in the year, according to The Denver Channel.
Will There be a Fourth Stimulus Payment?
Despite the US government's promise to give another package, it does not appear that another batch of federal stimulus checks is likely.
The checks are intended to assist those in need and Americans in making ends meet in the aftermath of the COVID-19 pandemic. In March 2021, President Joe Biden signed a $1.9 trillion rescue plan in the Oval Office, allowing payment delivery.
Even though the federal government has stopped delivering stimulus checks, states and local governments continue to give citizens with personalized payments.
West Liberty, Iowa, is the latest city to announce that residents will get stimulus cheques. Iowa will donate $700 to the stimulus fund. The funds will be distributed to employees who were not eligible for federal stimulus payments. The West Liberty town council approved a plan to offer stimulus funding to around 200 residences. Additionally, nearly 236,000 Oregon households will get $600 in stimulus funding this week. Low-income workers who were affected by the pandemic in the workplace are being compensated, Digital Market News reported.
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