Out of Scope:
- Other states than Colorado
- Moving expenses (unless Military certified)
Part-year resident (FYI Income 6):
- 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.
Before entering any Federal data:
- Make sure that the taxpayer can prepare their own tax return for the other state or that the other state has no income tax requirement.
- Either print a CO Part Time Worksheet form and determine the percent of time the taxpayer had Colorado as their state of residence.
- Or, open the Part Year Worksheet on a new browser tab
As you enter Federal data:
- Add income (other than W-2) on the worksheet as you enter it into TaxSlayer
- W-2 forms generally will have either multiple states indicated or there will be two W-2s, one for each state.
- For all other entries, calculate manually the amounts received while a resident of CO and record on the sheet you printed above.
- If a taxpayer moves from a state that did not expand Medicaid, they may be exempt from ACA during that time.
Adjustments to Income
In the table below,
- Earned = Amount is based on earned income (state / total)
- Gross = Amount is based on gross income (state / total)
- State = Amount is allowed only if occurred when a state resident
|23. Educator expenses||Y|
|24. Certain business expenses of reservists, etc OUT OF SCOPE||Y|
|25. HSA deduction||Y|
|26. Moving expenses OUT OF SCOPE unless certified for Military and taxpayer is active.||to CO|
|27. Deductible part of self-employment tax||Y|
|28. Self-employed SEP, SIMPLE OUT OF SCOPE||Y|
|29. Self-employed health insurance deduction OUT OF SCOPE||Y|
|30. Penalty on early withdrawal of savings||Y|
|31. Alimony paid||Y|
|32. IRA deduction||Y|
|33. Student loan interest deduction||Y|
|34. Tuition and Fees deduction||Y|
|35. Domestic production activities OUT OF SCOPE||Y|
|36. Jury duty pay given to employer||Y|
Entering the State data:
- Dates the taxpayer and spouse when Colorado was their residence of record.
- Supporting documentation method = Mail With DR-1778 (to substantiate credits)
Income Subject To Tax:
- Enter the amounts from the worksheet for Colorado.
- Additions to Colorado AGI are usually dividends from other state bonds.
- Subtractions from Colorado AGI are usually government interest.
- Child Care Expenses Credit is one you may have to calculate since the federal credit may include the other state’s expenses as well.
- Credit for Taxes Paid to Another State is not income taxes paid to the other state as a result of part-year residency.
- Most others are Colorado specific, so the entire amount of credit would be entered.