10/09/2024 | Press release | Distributed by Public on 10/09/2024 17:16
STATEWIDE - Today, Governor Polis and the Colorado Department of Revenue announced that starting for tax year 2025 all Coloradans will be able to use Direct File, made possible by the Biden-Harris Administration's Inflation Reduction Act, to file their federal tax returns directly with the IRS, and state returns starting in 2026. This will save Coloradans millions of dollars of filing fees, millions of hours of time, and help connect taxpayers with additional claims and credits. Coloradans can already use Revenue Online to file their state income taxes online for free.
"Filing taxes is no fun. It is often confusing, time-consuming, and expensive, which is why we're taking steps to make it easier for Coloradans to file. I am thrilled that starting in 2025, Coloradans can ditch the filing fees and file their own returns directly with the federal government. This action, which we called for, will save Coloradans time and millions of dollars of filing fees while ensuring hardworking families and individuals receive the additional claims and credits they have earned," said Governor Polis.
With Direct File, Coloradans will be able to complete and submit their federal and state returns at the same time beginning in 2026. The Economic Security Project, a nonprofit focused on economic empowerment for all Americans, estimates that using Direct File will save Coloradans $140.2 million in filing fees, 3.5 million hours of time filing, and connect Coloradans with between $81 to $207 million in additional credits per year.
Governor Polis continues to fight to ensure Coloradans keep more of their hard-earned tax returns, including keeping TABOR returns untaxed. This year Governor Polis signed legislation to create a nation-leading Family Affordability Tax credit which supports families and helps Coloradans keep more of their hard-earned money. Colorado has also expanded the Earned Income Tax Credit and made the senior homestead tax exemption portable. The State of Colorado has made filing returns easier and more accessible through free tax clinics and services like Get Ahead Colorado. With more than 100 tax credits, including specific incentives for electric vehicles, conservation, housing, and apprenticeships, Colorado is the best place to build a business, raise a family, and thrive.
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