$1,400 Tax Credit for Colorado Retirees on the Table with New Bill Proposal

Retired Americans may receive a $1,400 tax credit for 2023-2024 if a new bill passes, available to eligible Colorado residents.

The proposed tax credit Is aimed at supporting individuals who are likely to be on a fixed income and have struggled to keep up with cost-of-living adjustments (COLA). The bill, if passed, would provide a $1,400 tax credit for the years 2023 and 2024.

To qualify for the credit, individuals must be a full-time Colorado resident, at least 55 or older by the end of 2023 and 2024, and have retired from a position with a Colorado state public pension plan or be a retiree of a local Colorado government’s public pension plan.

The credit would be refundable, meaning that if an individual owes less in taxes than the credit is worth, they would receive a refund for the difference.

A bill in 2022 that impacted the same workforce estimated it would affect around 315,000 retirees, according to an article by Complete Colorado on January 21, 2023. The proposal involves distributing the credit over the next couple of years, but it’s not guaranteed that it would pass.

For now, the bill in question is in the process of being reviewed and discussed within the House of Representatives. Specifically, it has been assigned to the House Finance Committee for further examination.

However, at the time of press release, there has been no official announcement regarding when the bill will be heard and discussed by the committee.