Colorado residents have something to look forward to in 2025—a financial boost from the state in the form of cashback checks.
These direct payments, ranging from $800 for individuals to $1,600 for couples, are part of Colorado’s Taxpayer’s Bill of Rights (TABOR) refund program, which redistributes surplus state revenue.
Here’s everything you need to know to ensure you qualify and claim your share of the rebate.
What Are the Colorado Cashback Checks?
The Colorado cashback checks are state-issued payments designed to return excess revenue to taxpayers. Under TABOR, when Colorado collects more revenue than it is permitted to spend, it refunds the surplus to residents.
These payments provide direct financial relief to eligible taxpayers, especially during times of rising living costs.
- Individual Filers: $800
- Married Couples Filing Jointly: $1,600
Payments are issued automatically to eligible residents—no extra forms or applications required, as long as you meet the eligibility criteria.
Who Is Eligible?
To qualify for the cashback checks, you must meet these criteria:
Residency Requirement
You must be a Colorado resident for more than 183 days (half the year) in 2023. If you’re a part-year resident, you may not qualify for the full payment.
Tax Filing Requirement
You must file a 2023 Colorado state tax return by April 15, 2024. Even if your income is below the taxable threshold, filing a return is essential to claim your rebate.
Age Requirement
You must be at least 18 years old by the end of the 2023 tax year to receive the payment.
Tax Compliance
Ensure your taxes are in good standing. If you owe state or federal taxes, the payment may be reduced or withheld to cover your outstanding debts.
How Will Payments Be Issued?
The Colorado Department of Revenue will distribute the checks via:
- Direct Deposit: If you file your tax return electronically and provide valid banking information, your payment will be deposited directly into your account.
- Paper Checks: If you don’t set up direct deposit, you’ll receive your payment via mail.
Timeline
Payments are expected to be distributed between late summer and fall 2025. Those with direct deposit will likely receive their payments sooner, while mailed checks may take additional time.
How to Check Your Payment Status
You can track your payment status through the Colorado Department of Revenue’s online portal.
Be sure your tax return is processed and your contact information is up to date to avoid delays.
Why Are These Checks Being Issued?
The cashback checks are part of Colorado’s long-standing TABOR refund policy. Enacted in the 1990s, TABOR caps state spending and requires surplus revenue to be returned to taxpayers.
These payments ensure that taxpayers benefit directly from periods of economic growth and higher-than-expected tax revenue.
Steps to Ensure You Receive Your Payment
- File Your 2023 Taxes: File your state tax return by the April 15, 2024 deadline. Even if you’re exempt from filing, you must submit a return to qualify.
- Update Personal Information: If you’ve moved or changed your banking details, update your information with the Colorado Department of Revenue to avoid delays.
- Monitor Updates: Check the Department of Revenue’s website for announcements about payment distribution and potential eligibility changes.
Tax Implications of the Cashback Check
Good news: Colorado cashback checks are generally not considered taxable income at the federal or state level.
They are classified as tax refunds rather than earned income. However, consult a tax professional to confirm how these payments may impact your specific tax situation.
Economic Impact of the Checks
These checks provide timely financial relief for many Coloradans, particularly amid rising costs of living.
While $800–$1,600 may not cover major expenses, it can help with essential costs like groceries, utility bills, or savings.
The Colorado cashback checks in 2025 represent a straightforward opportunity for financial relief.
By meeting the basic eligibility criteria—filing your taxes on time and maintaining up-to-date personal information—you can ensure your payment arrives without a hitch.
These refunds exemplify the benefits of Colorado’s TABOR policy, allowing residents to share in the state’s financial success.
