By Joe Mueller | The Center Square
Federal tax money is returning to Colorado via free online tax filing for state and federal returns, which could help low-income taxpayers obtain more credits.
Taxpayer money from the $500 billion Inflation Reduction Act will pay for Coloradans to electronically file their state and federal returns for tax year 2025 in 2026 through a program called Direct File.
The Colorado Department of Revenue currently offers a free electronic service to file state tax returns. However, the Democratic Gov. Jared Polis and the Department of Revenue contend Direct file will save Coloradans millions in filing fees, hours of time and help taxpayers get information on possible additional tax credits.