Refund offsets and intercepts

Prior to the issuance of a refund, an overpayment of Colorado income tax will first be applied toward any outstanding debt the taxpayer owes the state. Refunds may be applied to state debts including, but not limited to:

state tax liabilities;

required repayment of unemployment benefits;

unpaid child support debt;

required repayment of public assistance or medical assistance benefits;

unpaid loans due to a state institution of higher education, CollegeInvest, or the Student Loan Division of the Department of Higher Education; or

judicial fines, fees, costs, surcharges, or restitution.

An overpayment of Colorado individual income tax may also be taken as part of the I RS State Income Tax Levy Program (SITLP) and applied toward unpaid federal tax liabilities the individual owes.

In the event of any refund offset or intercept, the Department will send a notice to the taxpayer advising of the debt to which their overpayment has been applied.