HB 23-1047

House Bill 23-1047 increases the state income tax deduction for Colorado residents who contribute to a qualified tuition program and file their taxes jointly. The new law raises the maximum deduction from $30,000 to $40,000 for married couples filing together. This change benefits families saving for educational expenses through these programs by allowing them to deduct more money from their state income tax. Since the bill has been signed into law, it is now in effect and applicable for tax returns filed after its enactment date.

Official Summary

Current law allows a state income tax deduction for payments made under a qualified state tuition program equal to a maximum of $20,000 for a taxpayer who files an individual income tax return and $30,000 for 2 married taxpayers who file a joint income tax return. The bill increases to $40,000 the maximum deduction for married taxpayers who file a joint income tax return.(Note: This summary applies to this bill as introduced.)