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$39M Annual Investment: Colorado Tax Credit Boosts College Affordability for Low-Income Students – Eligibility & Application Guide

A New Colorado Tax Credit Introduced for College Students

Get Up to $2,700 with the New College Colorado Tax Credit for Students from Low-Income Families

According to the posted article by Chalkbeat, students in Colorado now have a new way to help pay for college. A new Colorado tax credit is available for students from households earning $90,000 or less a year which covers the first two years of college expenses. This new Colorado tax credit that was approved by state leaders is designed to be easy for students to access. Colleges and universities will track eligible students and notify them but students will still need to file their own tax returns to receive the money. The Colorado tax credit acts as a rebate which means families must first pay tuition and fees upfront. After filing their tax returns they will get the refund. The program will run from this fall until the 2032 school year and is expected to cost the state around $39 million a year. It will benefit students attending public community, technical, regional colleges and four-year universities.

Eligible students must meet certain criteria including graduating from a Colorado high school within the last two years, enrolling in at least six credit hours, maintaining a 2.5 GPA and filling out the FAFSA or CASFA. The average tax credit is expected to be $2,700 for four-year college students, $2,000 for technical college students, and $1,000 for two-year college students. This new Colorado tax credit aims to assist more students than current college-specific programs which have their own eligibility rules and lack a statewide presence. The Colorado tax credit is designed to support middle-income students potentially increasing the number of students who can afford college in Colorado. Angie Paccione who is the executive director of the Colorado Department of Higher Education has emphasized the importance of making college affordable. She noted that just under 50% of high school graduates in Colorado pursue postsecondary education and expressed hope that this new initiative would provide the necessary incentive and motivation for students to realize that college is truly affordable and achievable.

READ ALSO: 8.5% State Pension Increase: HMRC Clarifies Tax Code Changes For Pensioners

$39M Annual Investment: Colorado Tax Credit Boosts College Affordability for Low-Income Students – Eligibility & Application Guide (PHOTO: Liu & Associates LLP)

Eligibility, Benefits, and Application Process

Furthermore, students will be notified of their eligibility via email from their colleges. They will receive a tax form to use when filing their state taxes. While the rebate is intended for tuition and fees students can use the money as they wish. Paccione advises using it to pay down tuition and reduce long-term debt. In summary, Colorado’s new tax credit offers significant financial relief for college students from lower and middle-income families making higher education more accessible and affordable.

READ ALSO: $43,888 Salary Threshold: New Federal Overtime Rule Brings 4 Million Workers Under Time-And-A-Half Pay Protection!

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