Colorado

CO TABOR State Sales Tax Refund

Understanding Your Eligibility and Claiming Process

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Tax Expert Team

Tax Expert

4 min read
Published on 4 months ago
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CO TABOR State Sales Tax Refund

The TABOR State Sales Tax Refund is a refund available to eligible Colorado residents as part of the state’s tax policy. This refund is based on modified adjusted gross income (AGI) and filing status, and it is applied against your Colorado income tax liability.

Eligibility Criteria

  • Must be a full-year Colorado resident.
  • Must be born before 2007, or
  • Be under the age of 18 and required to file a tax return.
  • Your return must be postmarked or transmitted by the extension due date.

How to Calculate the Refund

The refund amount is determined using your Modified AGI (from line 37 on Form DR 0104 or line 6 on Form DR 0104EZ) and your filing status. The refund amounts are tiered based on income levels:

  • Single Filers:
    • $52,000 or less: $19
    • $52,001 – $105,000: $25
    • $105,001 – $168,000: $29
    • $168,001 – $233,000: $35
    • $233,001 – $299,000: $37
    • $299,001 or more: $59
  • Joint Filers:
    • $52,000 or less: $38
    • $52,001 – $105,000: $50
    • $105,001 – $168,000: $58
    • $168,001 – $233,000: $70
    • $233,001 – $299,000: $74
    • $299,001 or more: $118

These amounts are entered on line 38 of Form DR 0104 or Form DR 0104EZ. The refund is then added to line 39 (sum of lines 33 and 38) and applied first against your Colorado income tax liability.

Important Notes

  • The TABOR refund does not affect your Colorado tax liability — it is a separate credit.
  • If you owe other taxes or debts to the State of Colorado or the IRS, your refund may be intercepted.
  • Modified AGI is calculated by adding your federal adjusted gross income (from Form 1040, line 114) and nontaxable Social Security income (calculated as line 6a minus line 6b on federal form).

Source:
Form DR 0104X
Form DR 0104
Form DR 0104EZ

Disclaimer: Always verify details with official forms and instructions from the Colorado Department of Revenue. OLT (Online Taxes) provides guidance based on retrieved information but does not guarantee accuracy for individual cases.

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Key Takeaways

  • Understanding tax deductions can significantly reduce your tax liability
  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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