After a period of anticipation and some frustration among taxpayers, the Colorado Department of Revenue has finally started processing income tax returns received through third-party services like TurboTax and H&R Block as of last Friday. This marks a shift in the tax season's pace for the state, which, up until recently, had its Revenue Online portal still flagging the filing links for individual, fiduciary, and business income taxes as "coming soon." The portal directed taxpayers to check back in late February after earlier messages had suggested an early February availability. Despite this setback, the state assures the online system for direct filings should be operational in the coming days.
According to Colorado Politics, the delay in processing was largely due to necessary updates for accommodating recent changes to the state tax code. Elizabeth Kosar, the department's communications director, relayed, "Throughout the year, the Department of Revenue has worked tirelessly to implement 26 major changes to the tax code, including 14 new tax credits that save Coloradans and businesses money — all of which must be programmed into our tax processing system and thoroughly tested," as obtained by Colorado Politics. She acknowledged the importance of timeliness in tax refunds to state residents, some of whom depend on them significantly, and stated the department is learning from the experience to improve future operations.
Amidst taxpayer concerns over the delayed start to tax processing over the President’s Day weekend, a new development surfaced. The Department of Revenue has launched an online tax benefits hub, which provides information on how to access various tax benefits and save money according to KKTV. Get Ahead Colorado is an additional resource spotlighted by the department, designed to help taxpayers understand essential tax credits available to them.
As stated by 9News, Colorado has expanded the existing Earned Income Tax Credit and introduced a Family Affordability Tax Credit that offers up to $3,200 per child aged 5 and younger. Other tax credits include those for childcare expenses and the purchase of electric vehicles. These changes are a piece of the comprehensive tax code overhaul that necessitated the system updates and led to the delays.
Though the filing deadline remains April 15, Colorado provides taxpayers with an automatic six-month extension to file their paperwork, as long as any tax payment obligations are met by the standard deadline. This extension may offer some solace to those affected by the delays, giving additional time to ensure proper filing and take full advantage of the new tax benefits.
