Colorado TABOR and corrected tax tables not included in Turbotax?

[JJSensei]

Colorado says the TABOR refund has been updated in State Income tax tables. Also tax rate has dropped to 4.5%.  When will Turbotax update to include these changes?

I've entered everything but yet to file due the change in CO tax tables. The dollar figure in CO State tax remains unchanged since the Colorado statement of changes

[ErnieS0]

IRS decided the Colorado Cash Back refund is not taxable for federal purposes. It does not have to be included on the tax return. The refund was never taxed by state.

Colorado reduced its income tax rate to 4.4%. Check you return to see whether the tax rate has been updated.

[JJSensei]

Ah, yes, the TABOR direct refund of 2022 is not taxed. I saw that. Thanks. But Colorado is doing another TABOR refund through the filing taxes for 2022.

Hence the question of: Has Turbotax updated its Colorado tax tables to reflect the most recent TABOR refund. And has Turbotax updated its tables to reflect the 4.4% rate?

Many thanks for reaching out.

[AliciaP1 · Accepted solution]

Yes, TurboTax is updated for the 4.4% 2022 tax rate and is calculating the 2022 TABOR refund if you qualify.

@JJSensei

[brat0504]

The Colorado Tabor refund is not calculating for my relative.  She can be claimed by another, but is filing a return to receive a refund.  She did not spend anytime in jail and is over 18.  Why is it not calculating?

[JamesG1]

See the explanation of @ErnieS0 above.

Does the Colorado tax return compute a 4.40% tax rate?

Divide line 10 by line 9.  Below see $1,177 divided by $26,718 = 4.40%

This Colorado Department of Revenue website states:

A TABOR income tax rate reduction results in either a larger refund, if the taxpayer over-withheld, or a smaller bill, if the taxpayer did not withhold enough or make enough estimated tax payments that year. The refund amount is different for each taxpayer, based on their unique income tax situation.

@brat0504 

[brat0504]

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."

[beldredge4211]

I am experiencing the same issue in preparing returns for my children.  They have similar situations but the Colorado sales tax refund is calculated properly for my younger son (under 18) but states my older son (older than 18) is ineligible.  I can't seem to find any distinction between the two tax situations (other than the age?).  

[JJSensei]

I'm not an expert but I did ask the question originally.

I noticed when I completed the very last State section/questions of Turbo tax the status counter above (showing refund amounts) did adjust A LOT giving me what appears to be the TABOR refund.

[AnnetteB6]

There were some updates to TurboTax with regard to the Colorado sales tax refund.  Please let us know if you continue to see any issues on your return.  

@JJSensei 

@beldredge4211 

@brat0504 

[mkrooks]

I just checked my Colorado Tax return prepared through Turbo Tax and line 34 (Tabor Tax refund) is blank. I do qualify for a Tabor refund so I'm not sure why Turbo Tax failed to include it.

[mkrooks]

  DR 0104 (11/28/23) Line 34.
"State Sales Tax Refund: For full-year Colorado residents, born before 2005, or
full-year Colorado residents who are under the age of eighteen but are required
to file a return. Enter $800 for one qualifying taxpayer or $1,600 for two qualifying
taxpayers filing jointly. See instructions if you are filing an extension."

Both my wife and I are Colorado residents for the full year of 2023 and both were born before 2005.  As such, Turbo Tax should have entered $1600 on line 34.  It is currently blank.

The instructions state in Line 35 that line 34 should be added with line 29.  Line 29 includes estimated tax payments made during 2023.  Line 36, states that if line 35 is greater than line 20, then subtract line 20 (Tax Liability) which represents the refund amount.  As 34 is blank, I'm losing out on the extra $1600 Tabor Refund. 

You state that it is calculating the refund but my printed tax return does not include it.  So Alicia, if you can call email me at [email address removed] I would be happy to share the results of my Tax return prepared by Turbo Tax to demonstrate that it is not correct.

[brat0504]

When filling out your return, did you go thru the section under Colorado called Other Situations; Sales Tax Refund?  You have to answer if you were incarcerated for more than 180 days in Colorado in 2023 and verify that you will be filing your Colorado return by the due dates.  That's how we got the Tabor refund added to our return.

[BillM223]

@brat0504  is correct, there two screens near the end of the Colorado interview that you have to pass through and make the correct answers to trigger the Colorado Sales Tax Refund:

1. "Qualifying for the Colorado state sales tax refund" (this is where the question about days incarcerated is)

2. "Qualifying for the Colorado sales tax refund" (where you have to indicate your filing date)

Once you have clicked on Yes on the second screen, the TABOR refund will be added.

Let this be a lesson for all TurboTax users, that when you start a section in TurboTax, that you finish it.

[Mfirstenberg]

What about for 2023? Is this automatically?