Colorado Return accepted with wrong tax rate

[Matt in CO]

My Colorado return was accepted on 2/6/23. Today I logged into Turbo Tax, an update was completed and now I'm getting a different refund amount from the state.  Will CO process my return with the correct amount using the correct tax rate, or will I eventually get my refund rejected and have to resubmit.  If so, what is taking so long for it to be rejected and Turbo Tax says the return was already accepted?  I have no idea what I am supposed to do and I cannot believe Turbo Tax dropped the ball on this. I have never had an issue completing a return in February before.  

[ThomasM125]

Most likely the Colorado Department of Revenue will adjust your tax to reflect any wrong tax calculated by TurboTax and adjust your refund accordingly. It is not likely your return would be rejected after it was accepted. I am not familiar with the issue with the tax rate being adjusted, but often this is the result of last minute changes inacted by the state department of revenue.

[Matt in CO]

Thanks for the reply, I'm hoping this is what happens and they just adjust the refund. 

[Matt in CO]

Update: The State of Colorado processed my return with the incorrect tax rate and shorted me $400. What am I supposed to do now to get the money I'm owed? Any help or guidance would be greatly appreciated. 

[MonikaK1]

The passage of Proposition 121 recently changed the Colorado income tax rate. The new Colorado income tax rate is 4.40%, beginning in the 2022 tax year. 

You can choose to amend your return using the correct tax rate. See here for more information on preparing an amended return with TurboTax.

If you prefer, and you have no other changes to make to your return, you may be able to amend your return electronically through Colorado's Revenue Online. Filing and amending returns in Revenue Online is a free service. You may amend online even if the original return was filed on paper. Revenue Online has all the information from your original return. You will not need to re-enter everything. See this webpage for more information.

[Matt in CO]

Thank you, I filed an amended state return this morning through Turbo Tax and it was free of charge. When I clicked to amend my state return Turbo Tax displayed the correct amount I was still owed by the state of Colorado and I submitted the amended return. I've never had to do this before so fingers crossed I did everything correct. I basically just followed the prompts and explained my original return was submitted before Turbo Tax had the latest update for the new CO tax rate.