Tax season 2023: Here's what you need to know before filing income taxes in Colorado
Tax season has begun — at least at the federal level.
The IRS began accepting federal tax returns Jan. 29, while Colorado has not started processing state returns as of the end of January.
Here's what you need to know about the 2023 tax season:
When can I file my taxes?
The federal government started processing tax returns on Monday, Jan. 29.
The Colorado Department of Revenue started processing returns Monday, Feb. 12.
How can I file my taxes?
The IRS Free File program lists several services that allow people who make under $79,000 adjusted gross income to file their federal — and sometimes their state — income taxes online for free.
Coloradans can also e-file their state income taxes for free through the state's Revenue Online service.
People can also file their taxes via mail or through a paid third-party company, like TurboTax or H&R Block.
When are taxes due this year?
Federal and state taxes are due April 15 for Coloradans.
If you need to file your state income taxes later, you can take advantage of an automatic six-month extension as long as at least 90% of what you owe is already paid, according to the Colorado Department of Revenue website. That gives Coloradans until Oct. 16 to file their state taxes.
Where is my tax refund?
Once your tax returns have been accepted, the IRS says it can take up to:
21 days for an e-filed return.
Four weeks or more for amended returns and returns sent by mail.
Longer if your return needs corrections or extra review.
Filing a paper return, claiming an earned income credit or child tax credit, or making an error in your return could also make your refund take longer.
You can check your refund status online by visiting irs.gov/refunds. People can also call the automated refund hotline at 800-829-1954 for a current-year refund or 866-464-2050 for an amended return.
What is this $800 on my Colorado tax refund for?
The Taxpayer’s Bill of Rights requires Colorado to pay back taxpayers any excess state taxes collected that year, which is determined by inflation and population growth.
This year, the state must pay back $3.7 million, which works out to $800 for individual filers or $1,600 for those filing jointly.
This year — after Gov. Jared Polis and the state legislature changed the refund system in late 2023 — every Coloradan will get the same amount of money instead of those who earn more getting a higher TABOR refund.
Coloradans have to file their state income taxes to get their TABOR refund.
More: How to make sure you get your $800 TABOR refund now that Colorado is accepting tax returns
What's going on with the child tax credit?
On Jan. 31, the U.S. House of Representatives voted to approve an overall tax package that, among other things, would increase the child tax credit from up to $1,600 per child to a maximum of $1,800 for 2023, $1,900 in 2024 and $2,000 in 2025. The expansion would then expire.
The bill is now in the hands of the U.S. Senate, and it must pass there before going into effect.
The IRS does not comment on pending legislation, however IRS Commissioner Danny Werfel said "don't wait on Congress" to file your taxes during a recent news conference.
“If there’s a change that impacts your return, we will make the change, and we will send you the update — whether it’s an additional refund or otherwise — without you having to take additional steps,” Werfel said. “... Taxpayers should file when they’re ready to file and as soon as they believe that they have a complete and accurate return, they should file.”
This article originally appeared on Fort Collins Coloradoan: Tax season 2023: What to know before filing Colorado, federal taxes
