The Internal Revenue Service released guidance on Friday afternoon on Colorado TABOR refund is exempted from the federal income tax or not.
Colorado TABOR Refund 2022
The Internal Revenue Service (IRS) released guidance on Friday afternoon about the different special relief payments that are not taxable. It included the Colorado TABOR refund 2022 and the Middle Class Tax Refund in California.
According to a published report in KRDO, the agency said that payments made by the state are generally part of the federal income tax. However, they also clarified that there are some exceptions on it and that included the Colorado TABOR refund 2022.
Additionally, the decision in the IRS guidance not to include Colorado TABOR refund as part of the federal income tax will help the taxpayers to save paying $400 million collectively in the state.
IRS, State Gov. Jared Polis Released a Statement
The IRS said, “The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns,” it also refers to Colorado TABOR refund.
Meanwhile, state Gov. Jared Polis said, “We, like millions of Coloradans, are breathing a sigh of relief that the IRS and federal government have stepped away from taxing our refunds this year. This ultimately is the best outcome for families and individuals and we will continue seeking out more ways to save people money. I will continue fighting to maintain this precedent that refunds under TABOR should never be taxed,” according to a published report in Colorado News Line.
Furthermore, the new guidelines of the IRS included different special payments released in 2022 in an attempt to help the residents amidst the pandemic.