Coloradans Vote To Limit Tax Deductions For The Wealthy
Jonathan Weinberg, JD, LLM, Principal
Authored by: Justin Howe, JD and Breea Boylan, MSA
The Colorado Department of Revenue has announced that House Bill 22-1055, effective August 10, 2022, creates a state sales tax exemption commencing January 1, 2023, for all sales, storage, use, and consumption ofincontinenceproducts and diapers and period products . Local statutory taxing jurisdictions may choose to adopt either or both exemptions by express inclusion in their sales and use tax ordinance or resolution. However, self-collecting home-rule municipalities are not obligated to adopt this exemption, meaning such products may remain taxable in specific Colorado home-rule jurisdictions.
How Do I Track My Colorado Tax Refund
To track the status of your Colorado 104 income tax refund online, visit the Colorado Department of Revenue website and use their Check Refund Status service. Colorado Department of Revenue states that if you e-file and request your refund by direct deposit, you should receive your refund within 2-3 weeks. Furthermore, you will receive your refund 1-2 weeks faster than if you request to receive a refund check by mail. Allow 8 to 12 weeks if you mail in a paper Colorado state tax return.
To track the status of your Colorado income tax refund for 2021 you will need the following information:
- Social Security Number
- Amount of your refund
The requested information must match what was submitted on your 2021 Colorado Form 104. You can also request a PIN/Letter ID to make managing your income tax information easier in the future. To track prior year refunds, you will need to contact the Colorado Department of Revenue service center by phone, secure message, or mail.
To contact the Colorado Department of Revenue service center by phone or email, use the check your refund status link above. Alternatively, read or print the 2021 Colorado Form 104 instructions to obtain the proper phone number and mailing address.
New Colorado State Tax Withholding Form Available
Colorado has a new tax form available for employees to make changes to their Colorado state tax withholding.
Beginning in August, employees will need to use the new Colorado Form DR 0004, Colorado Employee Withholding Certificate, to adjust Colorado state withholding tax. This will be the only acceptable form to submit changes to your Colorado tax withholding.
An overview of Colorado Form DR 0004:
- This form does not replace the IRS Form W-4. If an employee does not submit a Colorado Form DR 0004, then CU must calculate their Colorado state withholding tax based on their federal W-4.
- This form allows changes to your state annual withholding allowance and/or opting to have an additional amount withheld. The additional amount an employee designates will be deducted from every check it is not an annual amount.
- The Colorado Filing Status must align with the filing status on their federal W-4.
- A new IRS Form W-4 must be entered in the employee portal if you wish to change your tax filing status or claim exemption from taxes. This will change how both federal and Colorado state withholding is calculated, unless a Colorado Form DR 0004 is also submitted.
A withholding calculator can be found on the Colorado Department of Revenue website along with the DR 0004 form. Employee Services cannot provide tax advice.
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Colorado Enacts A Retailer Delivery Fee
Colorado enacted a retail delivery fee on all deliveries made by motor vehicle to a Colorado consumer with at least one item of tangible personal property subject to state sales or use tax. This fee will also include deliveries by a third party. The new retail delivery fee will take effect on July 1, 2022, and the delivery fee will be due by the 20th of every month, like the sales tax return. If a retailer files Colorado sales tax returns quarterly or annually, the retail delivery fee return will follow the same schedule.
Taxpayers can file the $0.27 retail delivery fee, as calculated per sale, on Form DR 1786. The fee types and rates for July 1, 2022, through June 30, 2023, are as follows:
- Community Access Retail Delivery Fee
- Clean Fleet Retail Delivery Fee
- Clean Transit Retail Delivery Fee
- General Retail Delivery Fee
- Bridge and Tunnel Retail Delivery Fee
- Air Pollution Mitigation Retail Delivery Fee
In-state and out-of-state retailers will be registered automatically for the fee if the retailer has an active sales tax account, a retailer license, and any sales tax liability reported after January 1, 2021. Taxpayers must print retail delivery fees on the invoice as a separate line item to customers.
Colorado Sales Tax Simplification With Launch Of Online Portal
On November 13, 2020, the Colorado Department of Revenue and the Governors Office of Information Technology rolled out Colorados first Sales and Use Tax System online portal for business that collect retail sales tax in excess of $100,000 in a year. The new portal will allow Colorado businesses to file taxes for the 600 plus jurisdictions in Colorado in one convenient location online. Businesses and individuals will be able to use took within the portal to find tax rate for any jurisdiction simply by entering an address free of charge. The state portal includes a new Application Program Interface in which businesses can integrate the tax lookup tool with their existing software. Other features of the new portal include taxability and exemption matrixes, the ability to calculate tax rates on items with differing tax rates in the same jurisdiction, and the history record of any tax rate changes.
With 272 municipalities, Colorado has been a complicated state to navigate when it comes to sales tax. Especially considering 71 municipals are home rule jurisdictions that can establish their own tax base and require taxpayers file and remit tax directly to the municipality as a self-collecting tax jurisdiction. More than half of the home rule jurisdictions are on the SUTS System and many others have started the process of executing agreements. A complete list of the jurisdictions joining the system can be found here.
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Colorado Income Tax Form Addresses
Colorado has multiple mailing addresses for different tax forms and other forms of correspondence. Make sure you send your completed tax forms to the correct address – some forms may have a different mailing address specified in the form instructions.
Here are two of the most important Colorado Department of Revenue mailing addresses for tax returns and general correspondence:
Estimated Income Tax ReturnsIncome Tax Returns
Disclaimer: While we do our best to keep this list of Colorado income tax forms up to date and complete, we cannot be held liable for errors or omissions. Is a form on this page missing or out-of-date? Please let us know so we can fix it!
Colorado Extends Destination Sourced Sales Tax Exception For Small Retailers
The Colorado Department of Revenue has announced an extension of the Colorado based small business exception to sales tax destination sourcing. The exception would have been repealed on June 30, 2021, but will now be extended to February 1, 2022. The exception allows Colorado based small businesses with less than $100,000 in annual retail sales to source their sales to their business location rather than where the purchaser receives the tangible personal property or service. For more information, please visit the Colorado Department of Revenue website.
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Innovative Motor Vehicle And Truck Credit
Taxpayers who buy an electric or hybrid car or truck are eligible for a tax credit. The owner doesnât need to be a Colorado resident, but the vehicle must be new and must be titled and registered in Colorado.
The value of the credit is $2,500 for passenger vehicles and increases to as much as $10,000 for heavy duty trucks greater than 26,000 lbs. For leased passenger vehicles, the credit is $1,500.
The credit is refundable.
How Does It Work
The State Treasurer’s office makes the approved tax deferral amount payment directly to the county on behalf of the participant by April 30th of that year. If the payment made by the state results in an overpayment, a refund will be issued to the homeowner by the county treasurer and the state deferral payment will be applied.
The deferral program does not exempt taxes it is a loan to assist Coloradans with the payment of real property taxes if an application is submitted and the applicant is eligible. The deferral loan is recorded as a junior lien against the participant’s property and does not have to be repaid until the participant no longer qualifies to defer the approved amount. Interest shall accrue beginning May 1st of the calendar year in which the deferral is claimed, until the loan is paid in full. Deferral repayment is due 90 days after a non-qualifying event. Prior year deferrals must be resubmitted for approval to continue deferral status along with any current year applications.If a loan for deferred taxes and accrued interest is not paid by the due date, such amounts are delinquent as of that date and the State Treasurer MAY foreclose for the deferred tax lien.
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Colorado Makes Changes To Its Pass
Colorado Governor Polis signed Senate Bill 124 on May 16, 2022, which reflects changes to Colorados enacted elective pass-through entity tax , often referred to as a SALT Workaround. These changes allow for a retroactive PTE election back to tax years beginning on or after January 1, 2018 .
- For tax years beginning on or after January 1, 2018 through December 31, 2021, the election shall be made by filing an amended composite tax return between September 1, 2023 and June 30, 2024.
- Qualifying pass-through entities will not incur any penalties or interest for making a retractive PTE election.
Individual And Corporate Filing Deadline
The income tax payment deadline for all Colorado taxpayers has been extended to July 15, 2020. Income tax returns previously due to be filed April 15, 2020 have been given an automatic six-month extension, now due October 15, 2020. The estimated payment deadline and penalties for the same have been waived until July 15, 2020.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
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Sales And Use Tax Forms
Sales and use tax returns for a given month are due on the 20th day of the following month. After all returns are posted, a revenue report is prepared and presented at the next regular meeting of the City Council.
Past and current sales and use tax reports can be viewed by using the links shown above. The “Year-to-Date” report reflects the most current tax revenue performance information and is updated monthly.
Register to receive an automated email notification or text message each time an updated report is posted with the Notify Me service.
Whatis Considered An Error
- The months of coverage are incorrect for one or more household members, or household members are missing from the form.
- The monthly enrollment premiums and/or the monthly advance payment of premium tax credit amount are incorrect for one or more months.
- Demographics are incorrect on the form: address, social security number, or date of birth.
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Figureout Your Premium Tax Credit
We provide the cost of the second lowest cost Silver plan in Form 1095-A in Part III . However, if your Form 1095-A shows zeros or incorrect amounts in those fields, use this tool to calculate the right amount you will need it to complete Form 8962. The IRS uses the cost of this plan, your family size and your household income to determine how much tax credit you qualify for based on your federal tax return.
File A Sales And Use Tax Return
- You are responsible for filing a return by the due date.
- Returns must be filed even if no tax is due to city.
- Tax Rate effective January 1, 2021 -current
- Tax Rate effective January 1, 2016 December 31, 2020
- Amended returns must be filed by mail. This form is found below.
Originator ID number is 1522077581. If you have a debit block on your bank account please provide this number to your bank to allow the payment to be processed when using our online services.
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Colorado State Tax Guide
State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Colorado residents.
Retirees: Most Tax-Friendly
If you’d like to live in the mountains the Centennial State is a generally a tax-friendly place to do it. Colorado has a reasonable rate income tax: If you have federal taxable income, the rate is a flat 4.4% for 2022. When it comes to property taxes, Colorado has one of the lowest median tax rates in the country. Gas taxes are on the low end, too.
Colorado Subjects Online Education Learning Plans To Sales And Use Tax
The Colorado Department of Revenue has determined through a letter ruling that learning plans available through an online learning platform are subject to sales and use tax. The ruling states that users gain access to streaming video lessons, which teach academic subjects, professional topics, vocational licensure preparation courses, a written transcript of the audio of the video, and online tutors. In classifying mixed transactions of tangible personal property and services, the department looks to the true object test. It was determined that the overall learning plan is viewed as tangible personal property even though the plans also provide services, as the services are in existence to support the online use of the platform. The delivery method of the sale does not impact the taxability of the sale of tangible personal property.
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Total Estimated 2021 Tax Burden
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 – 2021 filing season based on the Trump Tax Plan.
What Can Cause A Delay In My Colorado Refund
- If the department needs to verify information reported on your return or request additional information, the process will take longer.
- Math errors in your return or other adjustments.
- You used more than one form type to complete your return.
- Your return was missing information or incomplete.
- Colorado fraud protection could delay individual income tax refunds up to 60 daysbeyond the time frames of prior years.
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Find Out If Your State Still Owes You A Tax Rebate Or Stimulus Check
South Carolina is mailing out refunds through the end of the year, and California won’t finish until January 2023.
Many states are still issuing tax refunds and stimulus checks as residents cope with ongoing inflation. Massachusetts only began returning $3 billion in surplus tax revenue in November. The Massachusetts payments, equal to about 14% of an individual’s 2021 state tax liability, are expected to continue to be issued at least through about Dec 15.
South Carolina will continue issuing for up to $800 through the end of the year, and residents of California, Colorado, Massachusetts and Hawaii are also still receiving their payments
Your state could be sending out a rebate or stimulus check, too. See if you qualify and how much you could be owed. For more ontax credits, see if you qualify for additional stimulus or child tax credit money.
How Income Taxes Are Calculated
When Do We Update? – We regularly check for any updates to the latest tax rates and regulations.
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Where Can I Get Colorado Tax Forms
Printable Colorado tax forms for 2021 are available for download below on this page. These are the official PDF files published by the Colorado Department of Revenue, we do not alter them in any way. The PDF file format allows you to safely print, fill in, and mail in your 2021 Colorado tax forms.
To get started, download the forms and instructions files you need to prepare your 2021 Colorado income tax return. Then, open Adobe Acrobat Reader on your desktop or laptop computer. Do not attempt to fill in or print these files from your browser.
From Adobe Acrobat Reader use the Ctrl + O shortcut or select File / Open and navigate to your 2021 Colorado tax forms. Open the files to read the instructions, and, remember to save any fillable forms periodically while filling them in. Print all Colorado state tax forms at 100%, actual size, without any scaling.
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