Colorado Treats Poor Families Under Its Income Tax Better Than Most States
Colorados 1999 income tax threshold the income level at which families begin paying income tax:
Ranking among 42 states with income taxes
For two-parent families of four: $24,600.
For single-parent families of three: $22,000.
Colorados 1999 income tax on working-poor and near-poor families:
For families of three or four with full-time minimum-wage earnings ($10,712): $324 refund.*
For families of four with incomes at the poverty line ($17,028): $243 refund.*
For families of three with incomes at the poverty line ($13,290): $310 refund.*
For families of four with incomes at 125% of the poverty line ($21,285): $221 refund.*
For families of three with incomes at 125% of the poverty line ($16,613): $352 refund.*
Colorado has consistently exempted families with below-poverty earnings from the income tax.
Colorados tax threshold increased in 1999 due to the enactment of a state Earned Income Tax Credit.
In 1991, a family of four owed no tax until its income reached 3 percent above the poverty line. Colorados tax threshold is now 44 percent above the poverty line.
* Refund amounts reflect Earned Income Tax Credit and Child Credit; they do not include sales tax rebate.