Colorado TABOR for 2023

[jbpooler]

Reviewing the TurboTax 2023 Deluxe worksheets for Colorado state tax.  Line item 34, State Sales Tax Refund, does not include the $800 (one qualifying taxpayer).  Which TurboTax question (for the state return) should this $800 credit be inserted?

[JamesG1]

To qualify for the Colorado state sales tax refund, see the screen Qualifying for the Colorado state sales tax refund in the Colorado state income tax return.

See the Colorado Department of Revenue website here.

For one year only (2023), TABOR state sales tax refunds claimed on income tax returns, or PTC applications, will provide an equal refund of $800 for all qualifying individuals ($1,600 for two qualifying individuals filing jointly).

[patsy_j]

where do i find this mystery question?

i have tried to "search" for it but no dice :(

[BillM223]

I found this screen in the Online product near the very end of the Colorado interview, after the discussion about the underpayment penalty.

In the desktop product, navigate again towards the end of the state interview to the screen with the heading, "A Few Things Before We Wrap Your State Taxes", scroll down to "Other Situations", then click on Start or Revisit for "Sales Tax Refund".

@patsy_j 

[Westipeep]

This is very confusing for Colorado residents because we were alerted there is a $800.00 per filer refund from the state. We werent informed it would be a sep check but "your state refund will be much larger due to the Tabor refund. Please provide additional info soon. 

[BillM223]

You can read what Colorado says about TABOR here.

TurboTax will generate the tax credit automatically if the taxpayer meets the requirements. These are:

1. you must be a full-time Colorado resident.

2. You must not have been incarcerated 180 days or more in 2023.

In my test case, the $1,600 refund (for a couple filing married joint) appeared on line 34, just as it should have.

[Wolffe]

Mine was erased when I logged back in to file my Colorado return, and the system wouldn't let me put it back in. I'll probably end up filing an amended return. 

[BillM223]

There is no flag to set to get the TABOR refund, but if the incarceration flag is set, then you won't get it.

I have seen a test return in which the incarceration flag was set (I don't know how), so on your last pass through the input in Colorado, this would be a good thing to check. See above for where the incarceration question is found.

[Rhettbandy]

Did you have to amend? I had the exact same issue where I logged in and my tabor refund was gone and now I don’t know how to amend just my state return. Very frustrating!

[BillM223]

You will need to contact the Colorado Department of Revenue to see what to do, since the current requirements are that you have to file a tax return. If you have to file an amended Colorado return, please see the comments below.

"How do I amend my state tax return?"

 Note that TurboTax supports e-filing amended returns in Colorado.

***

You need to go all the way through your Colorado interview to get the credit and answer two questions:

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.