HB 24-1142

This Colorado bill, which has been approved and will take effect on August 7, 2024, allows individuals aged 55 or older but under 65 with an adjusted gross income of $75,000 or less for single filers or $95,000 or less for joint filers to exclude their Social Security benefits from state taxable income. Previously, only those 65 and older could do this. The bill aims to provide tax relief to more seniors by expanding eligibility and will be monitored for its effectiveness.

Official Summary

For income tax years commencing before January 1, 2025, the law allowed any individual who was 65 years of age or older at the close of a taxable year to subtract the total amount of social security benefits that the individual received from the individual's federal taxable income, to the extent those benefits were included in federal taxable income, when determining the individual's state taxable income. The act expands this subtraction to any individual who is 55 years of age or older but less than 65 years of age and whose adjusted gross income for the applicable tax year is less than or equal to $75,000 if filing individually or $95,000 if filing jointly. The act requires the department of revenue, in consultation with the state auditor, to collect information necessary to measure the effectiveness of the income tax subtraction. APPROVED by Governor June 6, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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