Understanding Bail: Does Colorado Consider Bail Tax Deductible or Not?

Understanding Bail: Does Colorado Consider Bail Tax Deductible or Not?

When tax season comes in Colorado, we always try to think of all the deductions that we can declare on our annual income tax return, such as cars, clothes, donations, investments, and more. However, not every expense is tax deductible – and that includes bail fees. 

Bail Money

Typically, bail is an amount set by the Colorado Court to release the arrested person from jail. However, not all offenders with criminal cases have the privilege to be out of prison because of bail. There are several factors the court considers in granting or denying bail, but the most common factor is if the defendant is a flight risk or not.

Posting Bail

Once the bail amount has been set, the posting of bail follows. It means that the defendant needs to pay the bail money to earn a pre-trial release. Depending on your financial capacity, you can choose different ways to pay the bail fees, either paying cash, check, credit card, property, or through Colorado bail bonds.

A Bail or a Bond is NOT a Tax

It is quite common to receive inquiries about bail being tax-deductible or not. A bail bond is not a tax that you can include as a deduction from your taxable income. Although it seems like one because the money goes to the government as a payment, it is still not considered tax-deductible.

A Bail is a Guarantee

Keep in mind that a person pays bail fees to expedite the release of the accused. It is a way to earn temporary freedom to allow the defendant to live a normal life while facing court proceedings diligently. For this reason, bail is regarded more as a guarantee rather than a tax. Also, the defendant must understand that they need to adhere to all stipulated bail terms and conditions set by the court.

Bail can be Refunded

When you opt to pay the bail fee using cash, check, or credit card, you must pay the whole amount upfront. The money you use to bail out the defendant can still be refunded, for as long as you follow the set conditions while outside prison. Otherwise, the bail money can be forfeited.

Although bailing someone out of prison using cash bail might be your best option, it is not the most ideal and realistic choice for everyone. It is not easy to generate the full amount of money needed to post bail in an instant.

A Bail bond is Better than A Cash Bail

 You have the option to bail out the arrested person through a third party like a professional Colorado bail bonds agent. The bail bond agency will charge the defendant’s party between 10% and 15% of the total bail amount as a premium fee for their service. This is a good alternative because you do not have to worry about 90% of the amount; the bail bonds Colorado agency will cover that for you.

Do you need bail bond services in Colorado? Get in touch with Lucero’s Bail Bonds 24/7! We’ve been in the business since 1982 and we know Colorado bail bonds like no other agency!

By | 2020-04-02T10:32:26+00:00 March 20th, 2020|Bail Bond, Bail Bonds|0 Comments

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