Tax Information

 Yes, property tax exemptions are available for disabled vets, Gold Star spouses and senior citizens.

All of these individuals can receive 50% of the first 200,000 value of their home value exempted from their property tax. This exemption is for primary residences owned and occupied since 1 January of the year in which the Veteran or Gold Star Spouse is applying.  Once granted, applicants are not required to reapply from the same address unless their VA status changes (for example, a change in the veteran's disability rating or loss of eligibility). If the applicant moves to a new property, they must submit a new application along with their VA Benefit Summary Letter to the county assessor’s office. The resubmission must occur between January 1 and July 1 of the application year.  Applications with an attached VA Benefit Summary Letter must be submitted to the county tax assessor’s office between January 1 and July 1.  Applications submitted to the Department of Military and Veterans Affairs will be delayed and possibly submitted after the July 1 deadline.

For Disabled Veterans, applicants must meet the following criteria. The veteran must:

·        have received an honorable discharge and have established service-connected disability rated as 100% and permanent by the United States Department of Veterans Affairs

·        or disability rated as 100% and percent permanent through disability retirement benefits administered by the United States Department of Homeland Security or the Department of the Army, Navy, or Air Force,

·        or have individual unemployability status as determined by the United States Department of Veterans Affairs.

Gold Star Spouse applicants must meet certain criteria. Applicants must be a surviving spouse of a United States Armed Forces service member:

·        who died in the line of duty and who received a death gratuity from the Department of Defense, or

·        whose death resulted from a service-related injury or disease as determined by the United States Department of Veterans Affairs, and who is receiving dependency and indemnity compensation from the United States Department of Veterans Affairs.

“Surviving spouse” means an individual who was legally married to the veteran at the time of the veteran’s death and who has not remarried

 For more information visit the CO Department of Military and Veterans Affairs website at https://vets.colorado.gov/property-tax-exemption

 Colorado also has a property tax exemption available to senior citizens and the surviving spouses of senior citizens. The state reimburses the local governments for the loss in revenue. When the State of Colorado’s budget allows, 50 percent of the first $200,000 of actual value of the qualified applicant’s primary residence is exempted. For the purpose of the exemption, a primary residence is the place where an individual is registered to vote. An applicant or married couple may apply for the exemption on only one property. Married couples and individuals who apply for this exemption and/or the disabled veteran exemption on multiple properties will be denied the exemption on each property. Two individuals who are legally married, and who own more than one piece of residential real property, shall be deemed to occupy the same primary residence and may claim no more than one exemption.  If an applicant owns multiple-dwelling units in which the applicant occupies one of the units, an exemption will be allowed only with respect to the dwelling unit that the applicant occupies as his or her primary residence.

No more than one exemption per tax year shall be allowed for a residential property, even if one or more of the owner-occupiers qualify for both the senior exemption and the disabled veteran exemption.

Any applicant who attempts to claim exemption on more than one property, knowingly provides false information on an exemption application, or fails to provide notice to the county assessor of any change in the ownership or occupancy of a property within 60 days of such occurrence will be subject to the penalties prescribed by law.

A qualifying senior citizen is a person who meets each of the following requirements:

·        The applicant is at least 65 years old on January 1 of the year in which he/she applies; and

·        The applicant or his/her spouse is the property owner of record and has owned the property for at least 10 consecutive years prior to January 1; and

·        The applicant occupies the property as his/her primary residence, and has done so for at least 10 consecutive years prior to January 1.

The surviving spouse of an eligible senior citizen is a person who meets all of the following requirements:

·        The surviving spouse was legally married to a senior citizen who met the age, occupancy, and ownership requirements on any January 1 since January 1, 2002; and

·        The surviving spouse has not remarried; and

·        The surviving spouse occupied the residential property with the eligible senior citizen as his or her primary residence and still occupies the same property.

There are two application forms for the senior property tax exemption. The Short Form is for applicants who meet the basic eligibility requirements. The Long Form is for surviving spouses of eligible seniors and for applicants who may qualify under the exceptions to the basic requirements. Both forms are available from the county assessor’s office. Completed applications should be submitted to the assessor on or before July 15 of the year for which exemption is requested. If the application is not filed by July 15, the assessor must accept late applications through August 15, but late applicants will not have appeal rights for an application filed after July 15. Once an exemption application is filed and approved, the exemption remains in effect until a disqualifying event occurs.

For additional information visit the following website: https://dpt.colorado.gov/property-tax-exemption-for-senior-citizens-in-colorado

Added 10 Jan 26  smy

After a three-year effort, the Colorado United Veterans Committee (UVC) finally achieved passage of a military-retirement-pay-specific income tax exemption.  Governor Hickenlooper signed the bill on Monday, May 21, 2018.

This bill (HB18-1060) creates a phased-in, partial tax exemption for military retirees under the age of 55.  The bill was passed, with bi-partisan sponsorship and support, in the final six hours of the 2018 General Assembly on May 9.  Senators Larry Crowder (R-35) and Angela Williams (D-33), Representative Lois Landgraf (R-21) and Speaker Pro Tempore Jessie Danielson (D-24) were the bill sponsors.

Highlights:

-  Armed Forces military retirement pay only

-   Four-year phase-in:  Exemption Year 1: $4,500 ($203 tax reduction per military retiree); Year 2: $7,000 ($324 tax reduction per military retiree); Year 3: $10K ($463 tax reduction per military retiree); Year 4:  $15K ($695 tax reduction per military retiree).

  -   The income tax exemption sunsets after five years.  There is a need to renew or make permanent in the future.

   -   Impacts an estimated 11,000 military retirees younger than 55 currently living in Colorado; 70% enlisted

Why only available for under 55?  Colorado has an existing retirement pay (including social security) income tax exemption for all persons - civilian or military - aged 55 and over. An analysis of Colorado's military retirees showed declining numbers in younger than 55 military retirees, increasing numbers in military retirees over 55. To minimize the fiscal impact on the State's General Fund, the UVC advocated for a bill that targeted under age 55 retirees and showed where this age group - second careers, working spouses, etc. - brings an almost 500% return-on-investment in state and local taxes and fees.

The easiest way to get the Fm 1099-R covering your military retirement income for the current tax year is by having a MyPay account with DFAS. With a MyPay account you can log into your account and just download the form yourself. In addition, MyPay allows you to change the amount you have withheld for both Federal and State taxes, print a copy of your Retiree Account Statement (RAS), set up beneficiaries for Arrears of Pay, update your mailing and e-mail address, etc.

If you don’t have a MyPay account, DFAS provides other options for getting your Form 1099-R. For retirees, if your mailing address on file with DFAS is current, you can get a copy of your 1099-R through the DFAS telephone self-service option. Using this method, your 1099-R should be in the mail within 7-10 business days to the address DFAS has on record. To use telephone self-service:

• Call 800-321-1080

• Select option “1” for Self-Serve

• Select option “1”

• Enter your Social Security Number when prompted

If the address you have on file with DFAS is out of date and you are not a MyPay user, both retirees and annuitants can get your 1099-R sent to a one-time, temporary mailing address, or to your mailing address on record, by submitting your request online. You can also request prior year 1099-Rs. Find instructions at (this link is case-sensitive): http://go.usa.gov/xPh7H If you prefer traditional mail, you can send DFAS a written request by fax or mail, but please make sure you leave time for processing. It can take up to 30 days to process requests received by fax or mail. Members with unique situations can speak directly to customer care representatives at 800-321-1080.

Mailing address for Retirees:

Defense Finance and Accounting Service

U.S. Military Retired Pay

8899 E 56th Street

Indianapolis, IN 46249-1200

Mailing address for Annuitants:

Defense Finance and Accounting Service

U.S. Military Annuitant Pay

8899 E 56th Street

Indianapolis, IN 46249-1300

You can fax the above requests to: 800-469-6559

For additional info on obtaining a MyAccount you can visit: https://www.dfas.mil/retiredmilitary/manage/mypay/

You have various tax preparation options available in our area, if you don’t do your own using Turbo Tax or whatever. While many places will do your taxes for a fee, there are at least two free alternatives.

The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $55,000 or less, persons with disabilities and limited English-speaking taxpayers who need assistance in preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. While some RAOs have volunteers who take the VITA training and assist with taxes, we simply do not have the staff to provide that service.

In addition to VITA, the Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older, specializing in questions about pensions and retirement-related issues unique to seniors. The IRS-certified volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS. (The website below says TCE sites are currently closed due to COVID.) The web site at https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers provides you with two links where you can search (by zip code) for places near you that offer free tax return preparation by volunteers. One link is for the “VITA/TCE Locator Tool” and one is for the “AARP Tax-Aide Site Locator Tool.”

The last time I checked, AARP will do taxes for anyone at no charge - you don’t need to be an AARP member. As an example, when I checked in January 2022, there were 20 different AARP tax-aide locations listed within 25 miles of my zip code - at libraries, retirement homes, senior centers, rec centers, etc. Some of them allow you to make appointments on-line and others you have to call. If you have additional questions for them, you can call the AARP tax-aide site located nearest you or visit AARP Foundation Tax-Aide Locator. Some are starting up in Feb and some later, and many may require an appointment if COVID is an issue or whatever. Call the specific site you are interested in for details.

As you know, if you do your own taxes, you have numerous options when it comes to filing - essentially snail mail or electronically. When filing electronically, some tax software you buy (like Turbo Tax) will charge you to file your taxes and to have any refund deposited into your account. You may not know the IRS offers some free tax filing options (with various caveats). For more info on the IRS free options see the following link: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

Note: Depending on the current situation, COVID could still impact some VITA and AARP tax sites, so you’ll have to contact them directly to find out if, and when, their services will be available and any constraints. In addition, some of the links in this paper will only provide information once tax preparation season has started.