Colorado State Tax Return incorrect!!

[braxtonwhite2006]

When i try to file my colorado state tax, you are giving me the 800 tabor refund in form of a tax credit. that credit is ONLY for residents that were age 18 or older at the beginning of the tax year. Your software has a glitch there as i am still only 17, you need to fix this before many file and get that refund then spend it and colorado may ask for it back. I can also not file until that is fixed because im not going to claim something im not entitled to and they will ask for it back.

directly from the colorado state website:

2023 TABOR Refund

The Department of Revenue (DOR) is administering the following 2023 TABOR refund mechanism, primarily through the Colorado Individual Income Tax Return (DR 0104):

Sales Tax Refund - Eligible 2023 full-year residents may claim this refund by filing in the manner described below by the appropriate deadline. The refund is $800 for one qualifying taxpayer or $1,600 for two qualifying taxpayers filing jointly. 

• File a 2023 DR 0104 by April 15, 2024, if you: 
  • Were at least 18 years old when the tax year began, 
  • Do not have a Colorado income tax liability,
  • Are not claiming a refund of wage withholding, and
  • Are not otherwise required to file a Colorado return because you have no federal filing requirement.
• File a 2023 DR 0104 by October 15, 2024, if you: 
  • Have a Colorado income tax liability,
  • Claim a refund of wage withholding, or
  • Are required to file a Colorado return because you are required to file a federal return.

SB23B-003 (Identical TABOR Refund) - TABOR refund mechanism adjustment for tax year 2023. TABOR refunds will provide an equal refund of $800 for all qualifying taxpayers ($1,600 for two qualifying individuals filing jointly). 

Certain residents may file a 2023 Property Tax/Rent/Heat (PTC) Rebate Application by April 15, 2024, in lieu of filing an income tax return.

[JohnW152]

This is not a programming issue.  A taxpayer under age 18 can claim the credit if they're a full-year Colorado resident, have a Colorado tax liability, and are claiming a refund of Colorado wage withholding from a Form W-2.

As you indicate, the April 15th deadline applies if taxpayers were at least 18 years old and meet the other requirements.

However, no such age requirement exists for the October 15th deadline.

See 2023 TABOR Refund in the Colorado Department of Revenue's Taxpayer's Bill of Rights (TABOR) Information for more information.

[garsol]

So on our Colorado 2023 return, we owed $241 but the TABOR refund was $1600 for a net of $1359.  Now Deluxe 2024 is counting a $1359 state refund as taxable income for our 2024 federal return.  We did not use state sales tax (only state income tax) when itemizing on our 2023 return, and Colorado did not send us a 1099-G for 2024.  

Was this a programming problem when TT2024 scanned my TT2023 return on my hard drive?  Seems to me like we did not get a "state income tax refund" in 2023, only the TABOR refund.  Any help on this would be appreciated.

[AmyC]

I can't speak for the scan. Let's get your TABOR refund and returns correct. Victory for Coloradans! TABOR Refunds Will Not Be Taxed by tells me that the TABOR refund should not be on your return at all. You need to delete that entry.

If you are using:

Online: see How do I view and delete forms in TTO?

 Desktop: If you are working in the cd/download TurboTax program:

1. On the top right, there is a FORMS button. 
2. Click on FORMS.
3. Locate the form you want to delete.
4. Click on the form name.
5. Below the form, bottom left, select DELETE FORM button.