I don't think TurboTax is calculating it correctly as the relative was a full-year Colorado resident, not incarcerated, who was 18 or older as of January 1, 2022 and we are filing before the April 18th deadline to receive a refund of W2 withholding. I've looked at the instructions for the the CO tax form and included them below and I don't see anything that would exclude the state sales tax refund from this return but TurboTax won't calculate it. After I select "No" for the question of incarceration, it tells me that this return does not qualify for the sales tax refund.
"Full-year Colorado residents, who were 18 or older as
of January 1, 2022, are eligible for the state sales tax
refund. To claim the state sales tax refund, your return
must be postmarked by April 18, 2023. Use the modified
AGI amount listed on line 32, and your filing status, to
determine the claim amount. Enter the claim amount
on this line 33.
If you are filing under extension, you may claim the state
sales tax refund only if you have a Colorado tax liability
(line 13 must be greater than 0) or you are claiming a
refund of Colorado wage withholding on a W-2. To claim
a state sales tax refund under extension, your return
must be postmarked by October 16, 2023. You must be
a full-year Colorado resident who was 18 or older as of
January 1, 2022.
If you are a full-year Colorado resident who was under
18 as of January 1, 2022, you may claim the state sales
tax refund only if you have a Colorado tax liability (line 13
must be greater than 0) or you are claiming a refund of
Colorado wage withholding on a W-2. Your return must
be postmarked by October 16, 2023.
Part-year resident and nonresident individuals are
not eligible for the state sales tax refund. Individuals
incarcerated in the Department of Corrections,
incarcerated in a county or municipal jail, and certain
individuals committed to the Department of Human
Services for at least 180 days in 2022 are not eligible for
the state sales tax refund."
