Get ready for a surprising windfall! Americans are about to receive a new wave of substantial payments, with a maximum of $1,130, as part of a unique refund program. But who gets this money, and why? It's all thanks to a specific US state's impressive revenue generation.
In times of rising living costs and inflation, many Americans are seeking financial relief through state-led initiatives. Take Colorado, for example, where residents can benefit from the Taxpayer's Bill of Rights (TABOR), a constitutional amendment implemented in 1992. This amendment restricts the state's tax revenue retention and mandates refunds to taxpayers when the revenue surpasses a certain threshold.
For the 2025 refund cycle, Colorado's revenue surplus reached a staggering $1.7 billion, leading to one of the highest TABOR refunds in recent history. The maximum refund of $1,130 is reserved for married couples filing jointly with an adjusted gross income (AGI) of $302,001 or more in the 2024 tax year. But here's where it gets interesting: TABOR also requires voter approval for new taxes, limits revenue growth, and mandates a 3% emergency reserve.
The refund amounts vary based on filing status and income. Single filers in the top bracket will receive $565, while lower-income taxpayers will get smaller checks, starting at around $177. The best part? Colorado residents don't need to apply; the refund is automatic for those who filed a state income tax return.
However, there's a catch. To be eligible, residents must have lived in Colorado for all of 2024 and filed their taxes by the extended deadline of October 15, 2025. The refund will be issued during the 2025 tax refund cycle, with payments arriving between spring and fall 2025.
But the story doesn't end there. Colorado's refunds fluctuate annually based on the state's economic performance. After a series of generous TABOR payments, the 2026 refunds are expected to be significantly smaller, ranging from $20 to $124 for joint filers, depending on income. And this is the part most people miss: the state controller reported a much lower excess tax revenue of $296.1 million for the fiscal year ending June 30, 2025.
This surplus will be distributed in two ways: Homestead Property Tax refunds, benefiting older homeowners, disabled veterans, and others; and income-based refund checks, with amounts varying from $20 to $62 for single filers, doubled for joint filers. These refunds will be issued when taxpayers submit their 2025 filings in early 2026.
Looking ahead, Colorado anticipates that TABOR refunds will not be available in 2027 due to a projected revenue decline. But there's more to explore beyond TABOR. Other payment opportunities include energy credits worth up to $750 and $400 "inflation refund" checks coming soon.
So, what do you think about this unique refund program? Is it a fair way to distribute excess state revenue, or should the money be allocated differently? Share your thoughts in the comments below, and let's spark a conversation!
