2015 CO 104

Out of Scope by [line number]:

  • [11] Charitable contribution that are Out of Scope for Schedule A.
  • [15] Wildfire Mitigation Measures Subtraction
  • [16] Colorado Marijuana Business Expense Subtraction
  • [27] Alternative minimum tax
  • [28] Recapture of prior year credits
  • [36] Total Enterprise Zone credits
  • [43] Gross Conservation Easement Credit

Part-year resident (FYI Income 6):

  • On the Main Information Sheet, clear the default of “CO” and show the multiple states in the section to the right.
  • Use the “PY Res Wkt” worksheet to verify income and deductions among the states. These numbers come from W-2s and 1099s.
  • On the 104PN, enter the dates the taxpayer and/or spouse were CO residents.
  • If a taxpayer moves from a state that did not expand Medicaid, they may be exempt from ACA during that time.
  • We cannot e-file the other state(s) returns nor guarantee their accuracy, but we can print them for the client if they are added to the TWO state print set for your site. If you don’t want to have the other state forms clutter your forms tree, use TX as the other state, since they have no state tax.
  • We do e-file both CO104 and CO104PN.
  • If one party of a joint return is a CO resident and the other is a part-year or non-resident, see FYI Income 13.
  • If all or part of the year the taxpayer is living abroad, see FYI Income 28.
  • A step-by-step set of instructions has been provided by Andy Johnson.
  • Note: moving expenses are  OUT OF SCOPE  unless certified for Military.

[2] State withholding add-back (FYI Income 4):

TWO calculates and enters this amount.

The lesser of:

  • The CO state tax withholding from Schedule A.
  • The difference between federal itemized deductions and the standard deduction.

 

[7,8] Pension subtraction (FYI Income 25):

TWO calculates and enters this amount.

  • $20,000 of annuities and pensions for each person is non-taxable for ages 55-64, $24,000 for 65 and over or
  • beneficiaries of any age (such as a widowed spouse or orphan child) who are receiving a pension or annuity because of the death of the person who earned the annuity or pension.
  • Conversion of a traditional IRA to a ROTH IRA can also be included in this subtraction.
  • Also included are taxable Social Security benefits, but see FYI Income 18 for how to calculate the amounts for each person.
  • Nonqualified deferred compensation payments received by persons 55 years of age or older qualify for the pension subtraction even if such payments may be reported as wages for federal income tax purposes to the extent they qualify as retirement income.
    • SOFTWARE ERROR – If there is an entry in box 11 of a W-2, it should, but does not, properly carry across to the CO pension exclusion lines 7(TP) or 8(SP).
    • If the exclusion amount is already at the $20,000/$40,000 limit, there is no need to fix the problem.
    • To fix the software error, manually add the amount (up to the $20,000/$40,000 limit) in the State Section > Subtrations from Income Tax Slayer page for the affected taxpayer’s exempt pension line.

[9] Colorado Source Capital Gain Subtraction (FYI income 15):

  • Taxable capital gains from the sale of real or tangible personal property located in Colorado.
  • Acquired after May 8, 1994 and owned continuously for five years prior to the sale date.

[10] College tuition contribution (CollegeInvest, 529 plan) (FYI Income 44):

  • The amount claimed can be no more than the Federal taxed income.
  • Contributions to other states are not eligible.
  • Starting in 2014, there is an option that permits a refund to be applied to a 529 plan. See instructions on the College Invest site.

[11] Charitable contribution deduction (FYI Income 48):

Always enter in TWO Schedule A forms

  • If not itemizing using Schedule A, total contributions (minus $500) can be deducted on the Colorado 104 – enter on the A Details worksheet.
  • It is possible that by paying slightly more federal tax (by not itemizing) and less CO tax that the overall tax payment will be smaller, so try both ways.
  • Any single non-cash contribution greater than $500 claimed on the CO return must have an appraisal or 1098C (for vehicles) scanned or sent in. (See the Colorado 104CR resource page for more information on how).

[12] Qualified Reservation Income:

  • Income derived wholly from reservation sources by a recognized tribal member and included as taxable income.
  • Tribal membership proof, residence and source of income must be submitted every 3 years.

[13] PERA or DPSRS Subtraction (FYI Income 16):

  • If contributions were made between 7/1/1984 – 12/31/1986 (PERA) or any time in 1986 (DPSRS), a subtraction may be taken.
  • The taxpayer will have to provide you the records to show what was contributed and what has already been subtracted.

[14] Railroad Retirement Subtraction (FYI Income 25):

Be sure to check the Railroad Retirement box on Form 1099-R.

  • Railroad retirement pensions are not taxable in the state of Colorado.
  • If there is a federal taxable amount for the RR pensions, that amount is subtracted from income.
  • If there is other pension income, the full $20,000/$24,000 still applies to that pension source.

[17] Non-Resident Disaster Relief Worker Subtrations (new in 2015)

Return of CO tax withheld while doing disaster relief work in CO. Not available to a CO resident.

[21-25] Modified AGI for TABOR (new in 2015)

MAGI calculated here is used to determine a tax credit for line 49.

[29-33] Use Tax (new in 2015)

Calculates sales/use tax for items purchased on which state tax has not been paid (e.g. most on-line purchases).

See this note on how to interface with your taxpayer.

Hover over the % figure in the CO Sales Tax map to see which of the following Special Districts apply

For line 32:

 Applicable District(s) Use Tax Rate  SDCU Code

Regional Transportation District (RTD) and Scientific & Cultural Facilities District (CD)

0.011 12
Regional Transportation District (RTD) Only 0.01 10
Scientific & Cultural Facilities District (CD) Only 0.001 20

Pikes Peak Rural Transportation Authority (Pikes Peak RTA)

0.01 30
Baptist Road Regional Transportation Authority (Baptist Road RTA) 0.01 40
South Platte Valley Regional Transportation Authority (South Platte Valley RTA) 0.001 50
Roaring Fork Transportation Authority (Roaring Fork RTA) – within city limits of Glenwood Springs or Carbondale 0.01 61
Roaring Fork Transportation Authority (Roaring Fork RTA) – within city limits of Basalt or New Castle 0.008 62
Roaring Fork Transportation Authority (Roaring Fork RTA) – in El Jebel area of unincorporated Eagle County 0.006 63
Roaring Fork Transportation Authority (Roaring Fork RTA) – within Aspen or Snowmass Village city limits, or unincorporated Pitkin County 0.004 64

[38] CO withholding without a W-2 or 1099-R:

Some banks or brokers may withhold CO tax which will appear on their consolidated statements.

  • To receive credit for such withholding, the return must be paper filed (with attached withholding forms).
  • Add the additional withholding to the calculated withholding on the Colorado return (Federal Section > Payments & Estimates > Other State Withholdings TS page).

[46] State Sales Tax Refund (new in 2015)

A refund due to the Tabor amendment.

Uses the MAGI calculated in line 25 and filing status to determine a tax credit of $18 – $82.

[50-63] Contributions to Colorado agencies:

Contributions to the listed agencies are deductible on next year’s taxes. Check last year’s tax return to be sure they were included in this year’s deductions.