Colorado Residents Will Get Bigger Tax Relief Checks Than Originally Planned
- Colorado is sending out rebate checks this summer.
- Residents can expect to see $750 or $1,500 checks in their mailbox.
If you live in Colorado, a $750 check may be coming your way.
Several U.S. states are finding ways to help their residents deal with higher living costs. Some state officials are sending out checks. Colorado is one state that announced it would send out rebate checks to its residents. In a positive turn of events, the checks will be for a larger amount of money than initially planned. Find out what this means for Coloradans.
In April, we wrote about how Colorado residents would get rebate checks.
At the time, Governor Jared Polis announced that single tax filers in the state would receive $400 while joint filers would receive $800.
It turns out that residents will get more money. Due to the state's strong economic performance, Coloradans will receive a bigger rebate check. How much bigger will the checks be? Significantly more than originally planned.
Individuals will get a check for $750, while joint filers will get $1,500 in tax rebates. Residents who file their tax returns by June 30, 2022, will get a check this summer.
With a bigger check on the way, Coloradans may be able to beef up their emergency fund savings or get some temporary relief from the higher-than-normal prices at the grocery store.
How to claim your tax rebate
Are you expecting a tax rebate check? Here's what you need to know:
If you're a full-year Colorado resident at least 18 years old as of Dec. 31, 20221, you will need to file your Colorado state tax return to get a rebate check.
Even if you didn't have taxable income, you must file a return if you want to claim your rebate.
Taxpayers who file an extension by Oct. 18, 2022, will receive their tax rebates in January 2023. You can expect to receive your rebate by mail.
Federal help could be coming
If you're not a Colorado resident, keep an eye on the news to see if your state is planning relief efforts. Some states have introduced legislation, and more states may do so as everyday costs continue to rise.
There may be help coming at the federal level. President Biden will ask Congress to suspend federal gas and diesel taxes for three months. The Biden administration is also considering gas rebate cards to provide Americans with relief at the gas pump.
At this time, there is no official announcement regarding federal relief efforts. We'll have to wait and see -- but such efforts could be welcome news for your wallet.
Keep extra spending to a minimum and save what you can
You may be wondering what you can do to better deal with the current economic situation.
If you don't yet follow a budget, it's never too late to start. You may be able to reduce unnecessary spending and free up cash for essential expenses. If you're unsure how to begin budgeting, consider using one of the best budgeting apps to simplify the process.
If you have extra money left over after paying all of your bills, you may want to move some of it into your savings account. There may come a time when you need to put your savings to use, and you'll be glad you have an emergency fund.
For additional tips and guidance, review our personal finance resources.
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