CO HB1142

Expands income tax subtraction for Social Security benefits for individuals aged 55-64 by increasing the cap from $20,000 to the full amount of benefits received if adjusted gross income is $75,000 or less (individual) or $95,000 or less (joint filing).

Maintains existing $24,000 cap for individuals aged 65 and older, with cap increased to full benefit amount if total Social Security benefits exceed $24,000.

Applies to income tax years commencing January 1, 2025 and later.

Requires the Department of Revenue to collect data necessary for the State Auditor to measure effectiveness of the tax expenditure for individuals aged 55-64 with qualifying income levels.

Takes effect 12:01 a.m. on the day following the ninety-day period after final adjournment, unless subject to a referendum petition requiring voter approval in November 2024.