COLORADO
separate property state

 

Military Income:  Fully taxable.

Military Spouse Residency Relief Act:  Spouse must have moved to Colorado from another state. Spouse in state solely to be with service member stationed in state in accordance with military orders. Spouse must be a resident of same state as service member. Attach copy of DR 1059 to paper return when filing.

Forms Used:            

Filing Status:  Same as federal.  If spouse is a domicile of another state, the parties should file as nonresidents. 

Attach Copy of Federal Return:  No

Not Taxed: 

Other State Tax Credit:  Available.  Attach Colorado Form 104CR and other state return.

Miscellaneous:  Sales Tax Refund is for residents only.  If claiming, must provide Colorado driver's license information on return or attach utility bills for the first and last month of the year.  If filing jointly as nonresidents, the resident still receives this credit. 

Where to Mail:
State of Colorado
Colorado Dept of Revenue
Denver, CO  80261-0005
 
Refund Inquiry:  (303) 238-3278 Forms:  (303)-232-2414
Website:  www.taxcolorado.com General Information:  (303) 232-2446
Other Info: E-File Help Desk:  (303) 866-3889
Colorado Dept of Revenue
1375 Sherman St.
Denver, CO  80261-0005
303-238-7378 
 
E-filing Info: Colorado requires the military or VITA preparer to sign the DR 8453 along with the taxpayer. The taxpayer should retain the DR 8453.
Tax Form Instructions:
Resident Instructions Non-Resident Instructions
  Military Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Colorado residents, lived at their present location all year, and one or both had income.

Main Info Screen

Colorado 104 Form.  A joint resident Colorado income tax return is prepared.

NOTE: If the return is to be e-filed to Colorado, you, as the preparer, must sign the printed DR-8453 along with the taxpayer(s). 

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Colorado, while the other member is a resident of a different state.  A Colorado income tax return must be prepared due to the taxpayer or spouse having Colorado earned income.
Main Info Screen.  If the spouse is a domicile (resident) of another state, the parties should file as nonresidents.  For this example, the taxpayer is a resident of  Colorado while the spouse is a resident of North Dakota.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Colorado Form 104.   A joint non-resident Colorado income tax return must be prepared.

Colorado Form 104PN - Part-year Resident/Nonresident Apportionment Schedule will be generated.  This form is used to subtract out the other-states (North Dakota) income.  The residency status must be entered on the top of the form by checking they boxes as they apply, as in the example.

NOTE: If the return is to be e-filed to Colorado, you, as the preparer, must sign the DR-8453 along with the taxpayer(s). 

Review the remainder of the Colorado Form 104 and 104PN to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Colorado tax return due to one or both having Colorado earned income.
Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Colorado income tax return because the spouse worked in Colorado.

Resident/Nonresident Worksheet. In order to comply with the Military Spouse Residency Relief Act, the nonresident military spouse's wages are set to zero as in the example. Link to a scratch pad from the indicated field.

Using the example, enter the nonresident spouse's wages on the scratch pad. Ensure the wages are entered as a negative number

Colorado Form 104.   A joint non-resident Colorado income tax return must be prepared.

Colorado Form 104PN - Part-year Resident/Nonresident Apportionment Schedule will be generated.  This form is used to subtract out the other-states (Wisconsin) income.  The residency status must be entered on the top of the form by checking they boxes as they apply, as in the example.

NOTE: If the return is to be e-filed to Colorado, you, as the preparer, must sign the printed DR-8453 along with the taxpayer(s). 

Review the remainder of the Colorado Form 104 and 104PN to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Colorado during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Colorado.  The Spouse and taxpayer must file a Colorado tax return due to one or both of them having Colorado earned income and possibly income from another state.
Main Info Screen.  For this example, the taxpayer is in the military and a resident of North Carolina.  The taxpayer and spouse moved from Colorado to North Dakota during the year.  The spouse was a resident of Colorado but now wishes to become a resident of North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Colorado and North Dakota and must file a Colorado income tax return because the spouse worked in Colorado.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Colorado Form 104.   A joint part-year resident Colorado income tax return must be prepared.  This form will be generated for a Colorado part- year resident who must report Colorado earned income.

Colorado Form 104PN - Part-year Resident/Nonresident Apportionment Schedule will be generated.  This form is used to subtract out all the other-states (North Carolina and North Dakota) income.  The residency status must be entered on the top of the form by checking they boxes as they apply, as in the example.

NOTE: If the return is to be e-filed to Colorado, you, as the preparer, must sign the DR-8453 along with the taxpayer(s). 

Review the remainder of the Colorado Form 104 and 104PN to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Colorado with Income from Another State  - Taxpayer is single.  The taxpayer must file a Colorado tax return due to him or her having Colorado earned income.
Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Colorado.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Colorado 104 Form.  A resident Colorado income tax return is prepared.  Colorado taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).

Colorado 104CR Form, Individual Credit Schedule - Part IV, Personal Credits.  Colorado 104CR Form must be added to the tax return.  Part IV on Page 2 must be prepared to give a credit for taxes paid to another state (North Dakota). You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the tax payer had withheld from his or her pay but the amount of tax imposed on them.  Line 24 is the amount of income that is being taxed by the other state while line 28 is the amount of income tax liability on the (North Dakota) tax return.  A copy of the other state's return must be attached to the Colorado return if not e-filed. The allowable credit will show on line 25. 

NOTE: If the return is to be e-filed to Colorado, you, as the preparer, must sign the DR-8453 along with the taxpayer(s). 

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Colorado return must be filed because the taxpayer received new tax information after their Colorado return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Colorado 104X - Amended Individual Income Tax Return.  Add the Colorado 104X Form to the return.  Answer the questions as in the example.   You must check the box to lock in the entries in Column A - As originally reported or as adjusted, before making any changes to the return.  The Taxpayer must attach an explanation for why the Amended Return is being prepared. 

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Colorado 104X - Amended Individual Income Tax Return, Page 2.  Return to the Colorado 104X form to determine if the taxpayer is receiving an additional refund or owes money.

Complete all other fields and forms with red or required information.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.