Colorado is 7th on the list of 10 states where taxpayers received the lowest average tax refunds in 2017, according to a recent study by CardRates.com. 

That puts Colorado at 45th among the 50 states (plus D.C.) in rankings of refunds from highest to lowest.

“While receiving a large refund feels nice, getting a smaller tax refund isn’t necessarily a bad thing,” the report stated. “When you receive a tax refund, it means the federal government took out too much from your paycheck throughout the year.”

The report, “10 States with the Lowest Average Tax Refunds,” was released Feb. 20.

According to CardRates’ data, Coloradans received an average federal tax refund of $2,645.18.  They paid a total of more than $56.7 billion to the federal government and received $5.4 billion back in refunds. 

Colorado boasts a median income of $74,172, considerably higher than the nation’s median income of $59,039 and one of the highest in the nation.

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Of Colorado’s 5,607,154 residents, 4,652,592 filed income tax returns in 2017, and a bit fewer than half of them — 2,020,196 residents — received refunds.

CardRates compiled 2017 IRS tax data for all 50 states, plus income and data figures from the Tax Foundation, U.S. Census Bureau and Forbes. 

To calculate the average refund amount for each state and D.C., the total amount of Internal Revenue refunds issued, including interest, was divided by the number of refunds issued.

So far, CardRates has released lists of the 10 states with the highest average federal tax refund and the 10 states with the lowest average refunds.

States with the highest average tax refunds in 2017 were:

1.   Delaware, $4,445.34
2.   New Jersey, $4,152.99
3.   Connecticut, $4,007.87
4.   Texas, $3,949.48
5.   Minnesota, $3,846.03
6.   Oklahoma, $3,713.98
7.   Illinois, $3,525.46
8.   New York, $3,457.67
9.  District of Columbia, $3,330.32
10. Louisiana, $3,260.71

States with the lowest average tax refunds in 2017 were:

1.   Montana, $2,421.28
2.   Vermont, $2,442.57
3.   Maine, $2,497.45
4.   Idaho, $2,512.45
5.   Iowa, $2,568.32
6.   Wisconsin, $2,620.78
7.   Colorado, $2,645.18
8.   West Virginia, $2,675.34
9.   Hawaii, $2,682.04
10. Oregon, $2,692.23