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 RR benefits from the CO retirement
amount and totals those RR retirement amounts, all to be entered on the CO "Subtractions from income" page.
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.
Income Description
Source
TP Amount
SP Amount
PENSION EXCLUSION WORKSHEET (See return's PDF):
Eligible Pension Income
Line 1
Actual Allowable Exclusion
Line 3
SOCIAL SECURITY AMOUNTS:
Social Security Benefits
Form 1099-SSA, Box 5
Total Taxable Social Security Benefits
Form 1040, Line
RRB AMOUNTS:
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.
State Corrections:
Enter the following amounts in the State Section, "Subtractions from Income" page:
Enter in Pension/Annuity Income:
Taxpayer:
Spouse:
Enter in Railroad Benefit Subtraction, Tier I or II Only: