![]() ![]() So that means you’ll be paying a minimum of 17.9% tax on any retail marijuana you purchase. Planning to take advantage of the fact that recreational marijuana’s now legal in Colorado? It can be an expensive indulgence.Īll retail marijuana and marijuana-infused products are subject to a 15% excise tax. Need help determining if any of your assets are held to these rules? An expert at Community Tax can review your assets and ensure your form is completed correctly. You’ll need to fill out Colorado tax form DR 1316 Colorado Source Capital Gain Affidavit in addition to your income tax return. Basically, that means that you’re not overdue on your state taxes and you haven’t defaulted on any of your contractual obligations. But some long-term capital gains may be exempt.įor your Colorado tax return, you might also get to subtract some of the capital gains from your income.īut what’s the catch? The capital gains must have been earned from Colorado sources and you must be a qualifying taxpayer. Most capital gains in Colorado are taxed at the same rate as your income, 4.63%. ![]() In Colorado, you must have owned the asset for five years prior to selling for it to qualify. Federally, and in many states, capital gains are taxed at different rates depending on how long you had them before you sold them, as well as the amount of your traditional earned income. ![]() You’re required to report any capital gains on both your federal and state income tax returns. Capital gains are the profit that you make from selling an asset. Kyle Cooke is the digital media manager at Rocky Mountain PBS. “It’s not a lot in the grand scheme of things, as an adult in Denver.” “It’s better than not having an extra $400, but it doesn’t go far enough,” said Thomas Law, a Denver resident and a service worker at Union Station, in an April interview. Some of the people we spoke with will be pleased that individual fliers are receiving $750 as opposed to $400. One person told us they would put the money toward their student loan debt, while others had plans to vacation. “More and more families are relying on food banks to feed their families.”Įarlier this year, Rocky Mountain PBS spoke to Coloradans about how they plan on using the money. “We continue to hear from folks who are desperately struggling simply to make ends meet,” Young said. Notably, the money will be delivered before the 2022 election in November. Treasurer Dave Young, speaking Tuesday, pointed to rising inflation, rent and medical costs as a reason for the expedient delivery of the rebate money. “All of this is in the face of rising costs, which is why we want to get this money out to you as quickly as possible, because you know what to do with it better than the government,” the governor said. ![]() Polis said Colorado’s unemployment rate is just 3.5% - slightly lower than the national average - and that the state has recovered more jobs than it lost during the pandemic. You can watch the governor's full comments below. “And so the fact that we’ve done so well has allowed us to increase the amount of this refund.” “It’s a weird time, because our economy is doing so well, and yet everybody is feeling the pressure of increased prices,” Polis said. Polis said people will receive the money in August. Taxpayers who filed their 2021 returns before June 30 are eligible to receive the rebate. However, a better-than-expected tax revenue at the end of this fiscal year - The Colorado Sun reports that there is $1 billion more in tax revenue in excess of the TABOR cap than was previously expected - means Coloradans will be getting more money in their rebate. At the time, the governor said individual filers would receive a $400 rebate and joint filers would receive $800. Polis initially announced the cashback rebate in April of this year. The money comes from a clause in the Colorado Taxpayer Bill of Rights ( TABOR ), which gives the state legislature power to determine how to refund excess tax revenue to those who pay it. Colorado Governor Jared Polis announced Tuesday, June 21 from the Governor’s Office that in late August, individual tax filers will receive refund checks of $750 joint filers can expect $1,500. ![]()
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