In 2023, Colorado launched the Colorado Cash Back program, providing a one-time stimulus payment of $1112 for single filers and $2224 for joint filers to help residents manage rising costs and inflation.
While this initiative has concluded, it remains a significant example of state-level economic relief. Here’s everything you need to know about eligibility, payment timelines, and managing the benefit.
Overview of the $1112 Stimulus Payment
The Colorado Cash Back payment was designed to return a portion of the state’s budget surplus to residents, addressing financial pressures caused by inflation. It was distributed in two components:
- Base Payment: $750 for single filers and $1500 for joint filers.
- Supplemental Payment: $362 for single filers and $724 for joint filers, adjusted for income levels.
| Feature | Details |
|---|---|
| Payment Name | Colorado Cash Back |
| Amount (Single) | $1112 |
| Amount (Joint) | $2224 |
| Eligibility Year | 2022 state tax return filers |
| Official Website | Colorado Department of Revenue |
Eligibility Criteria
To qualify for the $1112 stimulus payment, residents needed to meet these requirements:
Residency
- Must have been a full-time Colorado resident from January 1, 2022, to December 31, 2022.
Income Thresholds
- Single filers: Adjusted Gross Income (AGI) of $75,000 or less.
- Married couples filing jointly: Combined AGI of $150,000 or less.
Filing Status
- Filed a 2022 state income tax return by the April 2023 deadline.
- Dependents claimed on another tax return were ineligible.
Exclusions
- Residents incarcerated for most of 2022 were excluded from the program.
Payment Schedule
The stimulus payments were distributed in two main stages:
| Payment Method | Start Date | Details |
|---|---|---|
| Direct Deposit | August 2023 | Payments sent to eligible accounts. |
| Paper Checks | September 2023 | Mailed to addresses on tax returns. |
If you filed a 2022 tax return and opted for direct deposit, your payment was likely sent electronically. Paper check recipients may have experienced longer wait times.
Tracking Your Payment
If you haven’t received your payment or need assistance:
- Verify Eligibility: Confirm your eligibility by checking the criteria above.
- Visit the Colorado Department of Revenue: Use their online tool to check the status of your payment.
- Contact Support: Reach out to the department’s customer service for unresolved issues.
Tax Implications
The Colorado Cash Back payment is not taxable at the federal or state level. You do not need to report it on your 2023 tax return. However, any income earned from investing the payment, such as interest or dividends, is subject to taxation.
Managing the Payment
Here are some practical tips to make the most of your stimulus payment:
1. Pay Down Debt
Use the funds to reduce high-interest debt like credit cards or payday loans.
2. Save for Emergencies
Consider depositing the money into an emergency savings account for unexpected expenses.
3. Invest Locally
Support small businesses in your area by using the funds to shop or dine locally.
Similar Programs in Other States
Several states implemented similar relief initiatives to help residents cope with inflation:
| State | Program Name | Amount |
|---|---|---|
| California | Middle-Class Tax Refund | $200–$1,050 based on income |
| New York | State Child Tax Credit | $100–$500 per qualifying child |
| Illinois | Family Relief Plan | $50–$100 per filer, plus dependents |
Future Stimulus Possibilities
While the Colorado Cash Back program was a one-time payment, future surplus budgets or economic challenges could lead to similar programs. Residents should also explore other state assistance programs, such as:
- Energy Assistance Programs: Help with heating and utility bills.
- Housing Grants: Support for renters and homeowners.
- Small Business Relief: Aid for entrepreneurs and local businesses.
The $1112 Colorado stimulus payment offered critical financial relief to residents during an economically challenging time. Although the program has ended, staying informed about future initiatives and state assistance programs ensures you don’t miss out on valuable support.
