IRS says TABOR refund will not be taxed

COLORADO SPRINGS, Colo. (KKTV)- The Internal Revenue Service will not take out federal taxes on Colorado’s tabor refunds. This comes after weeks of confusion between state and federal agencies with the IRS even urging Coloradans to hold off on filing their taxes.

The governor’s office released a statement Friday evening saying all of that TABOR refund will stay in Coloradans’ pockets and none of it will go to the government.

If you have already filed and included it on your return, you will need to file a correction or an amended return.

“If you’ve gotten those payments, do not include them as other income,” said Mark Steber, the Chief Tax Information Officer at Jackson Hewitt.

Late last summer more than 2.4 million checks were sent to Coloradans as a refund from excessive tax collected at the state level, but there was still some confusion from the I.R.S. regarding the taxability of the payment.

All of Colorado’s congressional delegation signed a letter urging the I.R.S. to not take out federal taxes on it, including Colorado Congressman Joe Neguse, on Friday afternoon.

“TABOR revenue payments have never been taxable at the federal level at the precedent of 30 years. It has been that the IRS does not intervene or impede Colorado’s unique revenue structure,” said Congressman Joe Neguse during an interview with 11News.

Hours later after the delegation sent the letter, the agency agreed.

In a statement, Governor Jared Polis said that it was the best decision, “This ultimately is the best outcome for families and individuals and we will continue seeking out more ways to save people money.”

Tax officials add that you can now file your taxes and make sure you do not include the TABOR funds.

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