If a newly sponsored bill is passed, retired Coloradans may be eligible for a $1,400 tax credit in 2023 and 2024. Colorado residents who meet the eligibility requirements would be able to access the funds.
Legislators in Colorado want to help those who are probably on fixed incomes and whose cost-of-living adjustments (COLA) haven’t been able to keep pace with inflation.
Base on the article published by The US Sun on January 23, 2023, the credit would be refundable even though passing is not guaranteed. Meaning you will receive a refund of the difference if you owe less in taxes than the credit is worth.
The plan calls for dispersing the credit over the following few years.
You must reside in Colorado full-time in order to be eligible. Additionally, individuals must be 55 years of age or older by the end of 2023 and 2024. Moreover, you must have retired from a position covered by a Colorado state public pension plan or be a retiree of a Colorado local government-run public pension plan.
The House of Representatives is seriously discussing the bill. It has been referred to the House Finance Committee, but as of the time of publication, no schedule for a hearing has been set. A 2022 bill that affected the same workforce predicted it would have an impact on about 315,000 retirees.