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HB 24-1243

signed

Income Tax Owed by Minors on Earned Income

Plain-English Summary

AI-generated

House Bill 24-1243, which has been signed into law, changes how Colorado taxes minors who earn income. Under the new law, minors aged 17 or younger can subtract their earned income from their federal taxable income, meaning they won't owe state income tax on that money. Employers also don’t need to withhold state income tax from a minor’s wages anymore. This affects young people who work part-time jobs and earn income. Since the bill has been signed, it is now law and in effect.

Official Summary

Currently, an individual aged 17 years or younger (minor) is liable to the state for income tax on earned income. The bill allows a subtraction from federal taxable income of an amount equal to the earned income of a minor. An employer is not required to deduct income tax from the wages of a minor. (Note: This summary applies to this bill as introduced.)

Details

Chamber
House
First action
2024-05-14
Latest action
2024-02-12
Last action desc.
Introduced In House - Assigned to Finance
OpenStates
View source ↗

Sponsors

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Affected by (24)

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amends
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amends
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relates
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relates
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relates
SB 25-136(2025A)· signed
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relates
SB 25-138(2025A)· signed
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relates
HB 26-1222(2026A)· failed
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relates
HB 24-1312(2024A)· signed
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HB 25-1021(2025B)· failed
Retention of Vendors Fees for Collecting Sales Tax.
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