As a result of the economic downturn because of COVID-19, and the passage of new state legislation, more Colorado families may now qualify for a valuable, cash-back tax credit. Coloradans who lost their jobs or experienced a loss of income because of the pandemic may qualify for the Earned Income Tax Credit (EITC) when they file their taxes in 2021.
More than 715,000 Coloradans have filed unemployment claims since March and may be experiencing a dramatic loss in income throughout the year.
Source: COLORADO DEPARTMENT OF LABOR
As long as an individual worked for at least part of 2020 and earned less than $56,000 throughout the year, they may qualify for this cash-back refund, which is worth up to $6,600—and Colorado offers a 10% match to the federal credit.
In addition to Coloradans who experienced a decrease in income, ITIN filers may now qualify for the state EITC due to recent legislation. An ITIN or Individual Taxpayer Identification Number is given to those who are not U.S. citizens in lieu of a social security number so they can work and file taxes. Colorado is the first state in the nation to extend the state EITC to ITIN filers, increasing this tax credit’s impact for immigrant and refugee families.
Coloradans who haven’t filed in the past may also be eligible to claim this cash-back refund from years past—as far back as tax year 2017. As long as the individual had earned income below the maximum threshold and had dependents, it’s likely they qualify and will receive an EITC refund. Tax Help Colorado, an IRS VITA program, is available to help families file past year returns. This convenient, remote service is available through GetYourRefund.org.
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