DR 6596 Statement of Economic Hardship - Colorado tax-2025

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The rebate amount can be up to $1,154 a year and if you apply by October 15, 2025, you could receive up to a $354 TABOR refund ($177 for single filers). Annually, this program could provide more than $7 million in relief to Coloradans ensuring seniors and Coloradans with disabilities can heat and remain in their homes.
You must pay income tax on any previously untaxed money you receive as a hardship distribution. You may also have to pay an additional 10% tax, unless youre age 59 or older or qualify for another exception. You may not be able to contribute to your account for six months after you receive the hardship distribution.
Colorado law excludes from Colorado state income tax total pension income up to $20,000 per year per person for those retirees age 55 through 64, or $24,000 for those retirees age 65 and over. The retirees age on December 31 is used to determine the exclusion amount for that year.
IRS Hardship Refund Request Form 8944 The request should include detailed documentation supporting the financial hardship faced by the taxpayer, including proof of income, expenses, debts, and any other relevant financial information.
Coloradoans over 65 can receive up to a $1000 Senior Income Tax Credit if they have less than $25,000 annual income. Individuals earning up to $75,000 are also eligible for the Senior Income Income Tax Credit, if they do not receive the Senior Property Tax Exemption.
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Colorado taxes Social Security and retirement income but offers deductions depending on your age. The Centennial State has no estate or inheritance tax, relatively low property taxes and one of the lowest state sales taxes in the country; however, some municipalities levy a local sales tax.
Colorado is one of 9 states that tax Social Security benefits. However, Coloradans 65 and older can deduct federally taxable Social Security benefits from their taxable state income. Those ages 55 to 64 can deduct up to $20,000 in retirement income, including Social Security.
States that dont tax Social Security. Forty-one states plus the District of Columbia do not tax Social Security income for retirees. Kansas, Missouri and Nebraska are three of the most recent states to eliminate taxes on Social Security and others are in the process of phasing out the tax.

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