TaxSlayer incorrectly includes RR retirement benefits in the retirement exclusion.
But RR retirement benefits are not taxable in any state, thus has its own exclusion line.
Consequently, other retirement exclusions are capped at the 20K/24K limit prematurely.
This calculator removes the taxable portions of Tier 1
and Tier 2
RR benefits from the CO retirement
amount and totals those RR retirement amounts, all to be entered on the CO "Subtractions from income" page.
NOTE: If the person(s) with RR retirement benefits have not reached the maximum pension exclusion (see the CO Pension Exclusion Worksheet), the outcome will be correct, no change is necessary and you do not need to use this worksheet.
The Pension Exclusion Worksheet referenced is printed with the CO return immediately following the CO 104.
Other input comes from the taxpayer's documents or their entry in TaxSlayer.
The taxable amount of Social Security benefits from Form 1040 is used to determine how much of the 1099-SSA and RRB 1099 Tier I amounts are taxable. If that box turns red, verify all 1099-SSA and Tier 1 amounts also.
If any income amounts are subsequently adjusted (e.g.: by QR), remove the state corrections from TaxSlayer and re-calculate.
PENSION EXCLUSION WORKSHEET (See return's PDF):
Eligible Pension Income
Actual Allowable Exclusion
SOCIAL SECURITY AMOUNTS:
Social Security Benefits
Form 1099-SSA, Box 5
Taxable Social Security Benefits
Form 1040, Line 20b
Tier I Benefits
RRB 1099, Box 5
Tier 2 Benefits
RRB 1099-R, Taxable amount
The entry above shown as may be an error. Enter 0 if appropriate.
Enter the following amounts in the State Section, "Subtractions from Income" page:
Enter in Pension/Annuity Income page:
Enter in Railroad Benefit Subtraction, Tier I or II Only page: