Some low-income Coloradans will be seeing bigger refund checks this year.
The reason? Colorado is launching its own version of the Earned Income Tax Credit this year, a tax break that sends money to low-wage workers with children. Around 350,000 families are eligible for the credit, and should receive an average of $234 from it.
Lawmakers approved the state EITC years ago, but delayed putting it into effect until the state had a large enough surplus under the Taxpayer’s Bill of Rights. Now that the credit’s started, though, it will remain in place no matter what happens to state revenues.
Some of the groups that originally pushed for the state tax credit are now backing a Democratic bill that would allow recipients to split their refunds, getting some back as a check and having some go directly into savings. Proponents say research shows this kind of policy gets people to save more of their refunds.