Attention, Americans! A new wave of financial relief is on the horizon, and it's a welcome surprise for many. In a time of rising living costs, every little helps, right?
Certain US citizens are about to receive a financial boost, with payments of up to $1,130 as part of a unique refund program. But here's the intriguing part: this isn't a one-time deal. It's an annual event, and it's all thanks to a clever constitutional amendment in one particular state.
The state of Colorado has a special initiative called the Taxpayer's Bill of Rights, or TABOR for short. This amendment, added to the state's constitution back in 1992, limits how much tax revenue the state can keep and spend. Any excess revenue must be refunded to taxpayers, and that's where these handy checks come in.
For the 2025 refund cycle, Colorado's revenue surplus hit approximately $1.7 billion, resulting in some of the highest TABOR refunds in recent years. Residents who are married and file taxes jointly with an adjusted gross income of $302,001 or more in the 2024 tax year can expect the maximum refund of $1,130. Single filers in the same top bracket will receive $565, and those in lower tax brackets will get smaller but still significant refunds, starting at around $177.
The best part? This refund is automatic for Colorado residents who filed a state income tax return. There's no need to apply separately.
However, there are some criteria to meet. Residents must have lived in Colorado for the entire 2024 year and filed a 2024 Colorado income tax return or submitted a qualifying rebate or property tax application. They also had to file their taxes by the extended deadline of October 15, 2025, to be eligible for the refund.
The money will be distributed during the 2025 tax refund cycle, with most TABOR payments arriving between spring and fall 2025. But here's where it gets controversial: the size of these refunds can vary greatly year to year, depending on the state's economic performance.
After a few years of relatively large TABOR payments, next year's refunds will be much smaller. For 2026, TABOR refunds by income range are expected to be significantly lower, with the highest refund for single filers at $62 and $124 for joint filers, a far cry from the $1,130 maximum this year.
And this is the part most people miss: Colorado's state controller reported that for the fiscal year ending June 30, 2025, the state collected $296.1 million in excess tax revenue, a significant drop from the previous year's $1.7 billion. This means that aside from TABOR refunds, the state will also distribute Homestead Property Tax refunds to reduce taxes for older homeowners, disabled veterans, and others.
So, while TABOR refunds are a great financial boost, they're not the only form of relief available to Colorado residents. And for those in other states, there are still opportunities to receive energy payments and "inflation refunds" to help ease the burden of rising costs.
What do you think about these state-run initiatives? Are they a welcome relief or a controversial use of taxpayer money? We'd love to hear your thoughts in the comments below!
