Colorado Form 104PN

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. Otherwise, the taxpayer may have to pay a professional to re-create the federal return as well as the other state.
  • 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:

Income

  • 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.
    • Income sources may not always correspond to the dates of residency. For example, if a taxpayer moved to CO in July but kept a savings account in the other state through September, only 3/12 of the interest would be taxable to CO – not 6/12. if they withdrew most of the funds before leaving the other state, very little interest might be taxable to CO.

Adjustments to Income

In the table below,

  • Earned = Amount is based on percent of CO earned income (state / total)
  • Gross = Amount is based on percent of CO gross income (state / total)
  • State = Amount is allowed only if occurred when a CO resident
ADJUSTMENT Earned Gross State
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:

Basic Information:

  • 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.

Credits:

  • 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.