The Colorado Tax Form, a crucial document for state residents, encapsulates everything individuals need to file their income taxes, including required schedules and instructions. Designed to guide full-year, part-year, and nonresident individuals through their Colorado Individual Income Tax obligations, the form is a comprehensive tool for navigating tax season. Beyond tax computation, it offers insights into voluntary contributions, tax credits, and potential subtractions from income, ensuring that taxpayers are well-informed about their responsibilities and opportunities.
Understanding the Colorado Tax Form can be vital for residents, part-year residents, and nonresidents alike who have earned income within the state's boundaries. This comprehensive form, part of the wider tax filing guide provided by the Colorado Department of Revenue, facilitates the accurate reporting and calculation of taxes due to the state. The booklet, updated as of November 4, 2019, includes vital forms such as the DR 0104 for individual income tax reporting, schedules for deductions (DR 0104AD), tax credits (DR 0104CR), and voluntary contributions (DR 0104CH), among others. It also addresses the specifics for those filing as full-year, part-year, or nonresident individuals, ensuring everyone's unique circumstances are catered to. The guide takes a step further to breakdown expenditure and revenue disclosures for a transparent view of where tax dollars are allocated, alongside a detailed income tax payment form (DR 0900) and an extension payment form (DR 0158-I) for those needing more time. This document is not just about the “how-to” of filing but also delves into the “where” your taxes are going, with explanations on average taxes paid, and intricacies such as military service considerations and residency implications. Colorado has made strides in simplifying the tax filing process through easy-to-follow, secure online filing methods, but recognizes the importance of offering detailed, supportive documentation for those who choose or need to file through traditional mail-in methods.
(11/04/19)
BOOKLET INCLUDES:
104
Book
Instructions
DR 0104
Related Forms
2019
Full-Year, Part-Year and Nonresident Individuals
Colorado Individual Income Tax Filing Guide
This book includes:
DR 0104 2019 Colorado Individual Income Tax Form
DR 0104CH 2019 Voluntary Contributions Schedule
DR 0900 2019 Individual Income Tax Payment Form
DR 0104AD 2019 Subtractions from Income Schedule
DR 0158-I 2019 Extension Payment for Colorado Individual Income Tax DR 0104PN Part-Year Resident/Nonresident Tax Calculation Schedule 2019 DR 0104US 2019 Consumer Use Tax Reporting Schedule
DR 0104CR Individual Credit Schedule 2019
Disclosure of Average Taxes Paid
Colorado Income Tax Table
Description of Voluntary Contribution organizations
MAILING ADDRESS FOR FORM DR 0104
WITH
WITHOUT
PAYMENT
Mail To
COLORADO DEPARTMENT OF REVENUE
Denver, CO 80261-0006
Denver, CO 80261-0005
These addresses and zip codes are exclusive to the Colorado Department of Revenue, so a street address is not required.
Page 2
Disclosure of Colorado Expenditures and Revenues
** Due to rounding, the values in each chart may not sum to 100%
Revenues by Source
Expenditures by Function
Other
Transportation
8.9%
3.2%
4.5%
Federal Grants
Justice
& Contracts
Taxes
6.4%
Education
29.7%
41.1%
Business, Community
39.9%
& Consumer Affairs
5.2%
Interest & Rents
2.6%
License, Permits
Charges for
& Fines
Social Assistance
Goods & Services
2.9%
35.2%
20.5%
Calendar Year 2016
Average Family Money Income 1
$0
$15,000
$30,000
$40,000
$50,000
$70,000
$100,000
$150,000
$200,000
to
and
Weighted
State Taxes and Fees
$15,000 2
$29,999
$39,999
$49,999
$69,999
$99,999
$149,999
$199,999
more
Average 3
Individual Income 4
$83
$319
$719
$1,063
$1,567
$2,428
$3,850
$5,696
$16,241
$2,544
Sales 5
$285
$347
$468
$487
$582
$712
$923
$1,204
$2,480
$690
Gasoline and Gasohol 6
$92
$117
$156
$178
$202
$240
$274
$288
$437
$198
Licenses 7 and Registrations 8
$91
$126
$162
$171
$188
$224
$250
$259
$179
Alcoholic Beverages 6
$4
$3
$6
$9
$14
$18
$42
Cigarettes and Tobacco 6
$44
$48
$49
$52
$50
$34
$46
Total State Taxes and Fees
$598
$955
$1,557
$1,955
$2,595
$3,665
$5,361
$7,491
$19,501
$3,667
Local Taxes and Fees
Residential Property 5
$666
$1,024
$1,363
$1,316
$1,652
$2,128
$2,998
$4,259
$9,964
$2,240
Sales and Use 5
$446
$544
$733
$763
$912
$1,115
$1,444
$1,886
$3,882
$1,081
Specific Ownership 8
$94
$136
$177
$209
$282
$292
Occupation 9
$2
$11
$15
$22
$31
$23
Total Local Taxes and Fees
$1,208
$1,709
$2,282
$2,278
$2,788
$3,515
$4,755
$6,470
$14,273
$3,542
Federal Taxes
$609
$1,166
$2,273
$3,377
$5,318
$8,716
$14,652
$24,598
$100,649
$12,224
Medicare 10
$106
$303
$483
$630
$843
$1,198
$1,746
$2,478
$12,382
$1,595
Social Security 10
$455
$1,294
$2,067
$2,693
$3,607
$5,121
$7,347
$3,536
Total Federal Taxes
$1,170
$2,762
$4,824
$6,699
$9,768
$15,035
$23,745
$34,422
$120,377
$17,356
Total Taxes and Fees Paid
Households
$2,977
$5,426
$8,663
$10,932
$15,150
$22,214
$33,861
$48,384
$154,152
$24,565
Taxes Paid by Employers 11
$561
$1,597
$2,551
$3,323
$4,450
$6,319
$9,093
$9,825
$19,729
$5,131
Federal data and other data sources are used to estimate average taxes paid when actual data are unavailable for most tax types.
The methodology for some estimates and income class categories changed from 2014 due to changes in the Bureau of Labor Statistics Consumer Expenditure Survey (CES), therefore estimates from prior years may not be comparable.
1Estimate of income uses the CES definition of “money income” which includes all sources of income, taxable and nontaxable, as well as transfer payments (such as public
assistance, supplemental security income, food stamps, and other benefits or contributions).
2Some taxpayers family money income estimate was negative. Negative income is associated with self-employment and investment losses. These taxpayers were excluded
because we cannot reliably assign them to the income categories used in this table.
3The weighted averages were calculated for each row using the average tax paid for each income class multiplied by the total number of filers in that income class. This
report’s weighted average values are not comparable to prior reports’ average values.
4Estimate is based on values from state and Federal income tax returns.
5Estimate is calculated using the CES proportion of income for the tax on that item for each class, multiplied by the Colorado average income value for each class.
6Industry data (e.g., average prices) was used to estimate the tax paid based on the CES value for that item. Then, the estimate was calculated using the CES proportion of
income for the tax on that item for each class, multiplied by the Colorado average income value for each class.
7The total state collections for drivers licenses was divided by the total number of filers, yielding a flat fee across all income classes.
8The registrations and specific ownership fees/taxes paid were estimated using the total state collections and the CES average number of vehicles for each income class.
9Total local occupation fees collected were distributed by income class.
10Medicare and Social Security taxes were estimated based on income subject to these taxes.
11Employers pay taxes to Medicare and Social Security on the employees’ behalf.
Table of Contents
2
DR 0900: Individual Payment Form
25
Using this Guide: Filing Instructions
3
DR 0158-I: Extension Information and Form
27
Taxpayer Service and Assistance
8
DR 0104PN: Part–Year Resident/Nonresident
Tax Table
15
Tax Calculation Schedule
29
DR 0104: Colorado Return for All Resident Types
17
DR 0104US: Consumer Use Tax Reporting Schedule..
33
DR 0104CH: Voluntary Contributions Schedule
21
DR 0104CR: Individual Credit Schedule
35
DR 0104AD: Subtractions from Income Schedule ..
23
Voluntary Contribution Information
39
How To Use This Filing Guide
This filing guide will assist you with completing your Colorado
Income Tax Return. Please read through this guide before
starting your return. Once you finish the form, file it with a computer, smartphone or tablet using our free and secure
Revenue Online service at Colorado.gov/RevenueOnline. You may also file using private e-File software or with a paid tax preparer. You significantly reduce the chance of errors by filing your return electronically. If you cannot file electronically for any
reason, mail the enclosed forms as instructed. All Colorado
forms and publications referenced in this guide are available for download at Colorado.gov/Tax, the official Taxation website.
The following symbols appear throughout this guide and point out important information, reminders and changes to tax rules.
This points out a topic that is the source of common
filing errors. Filing your return on Revenue Online will reduce the risk of errors; however, it is important
to understand the information on your return. Errors
cause processing delays and erroneous bills.
Several subtractions and tax credits require you to provide supporting documentation. This symbol points out those requirements. If the additional documentation is not provided, it will cause processing delays or denial of the credits/ subtractions. These documents can be scanned and attached to your electronic filing through
Revenue Online or most tax software, mailed with
the DR 1778 or attached to your paper return.
In-depth tax information is available in our easy to understand FYI Publications, which include examples and worksheets. This symbol lets you know when such a publication is available for a subject. All FYI
publications are available in the Education and Legal Research section at Colorado.gov/Tax.
Filing Information
Who Must File This Tax Return
Each year you must evaluate if you should file a Colorado income tax return. Generally, you must file this return if you are required to file a federal income tax return with the IRS for this year or will have a Colorado income tax liability for
this year and you are:
•A full-year resident of Colorado, or
•A part-year Colorado resident who received taxable income while residing here or
•Not a resident of Colorado, but received income from sources within Colorado.
Colorado residents must file this return if they are required to file an income tax return with the IRS,
even if they do not have a Colorado tax liability.
Otherwise, the Department may file a return on your
behalf and our return might not consider your unique tax situation. Also, the only way to determine if you
are entitled to a refund is to file a return.
Due Date
Page 3
postmarked by April 15. An automatic extension to file is
granted until October 15, but there is no extension to pay. See page 27 for more information.
Deceased Persons
Legal representatives and surviving spouses may file a return on behalf of a deceased person whose date of death was
during the tax year. Surviving spouses may complete the
return as usual and indicate the deceased status on the return. They can file the return and submit a copy of the death certificate through Revenue Online. Legal represen- tatives may file the return and submit a copy of the death certificate through Revenue Online, but they must complete
the Third Party Designee portion of the return. Either a
surviving spouse or legal representative can avoid problems when filing on paper by marking the box next to the name of the deceased person, writing “DECEASED” in large letters in the white space above the tax year of the return, writing “FILING AS SURVIVING SPOUSE” or “FILING AS LEGAL REPRESENTATIVE” after their signature, and attaching the DR 0102 and a copy of the death certificate to the return.
To claim a refund on behalf of a deceased person: you must submit a copy of the death certificate with the DR 0102 when filing the return.
Filing Status
You must file using the same filing status on both your federal and Colorado income tax returns. Any two individuals who legally file a joint federal income tax
return must also file their Colorado income tax return jointly. Individuals filing a joint return must list the
taxpayer names and Social Security numbers (SSN) in the same order on both the federal and Colorado returns. For married filing separate, do not list your spouse’s name or SSN on the return.
Claiming Credits from a Pass-through Entity
Individuals claiming tax credits as a partner or shareholder must obtain from the partnership or S corporation a federal Schedule K-1 or other statement reporting the name and employer identification number (EIN) of the partnership or S corporation and the type and amount of the credit. The Colorado Department
of Revenue verifies the credit claims of partners and shareholders by reviewing the partnership or S
corporation’s return. The Schedule K-1s or statements
may be submitted through Revenue Online, through tax software or may be attached to a paper return.
Line–by–Line Instructions for the DR 0104
First, complete the federal income tax return you will file with the IRS because you will use information from that return
on your Colorado income tax return. Colorado income tax
is based on your federal taxable income, which has already
considered your deductions.
Residency Status
Mark the appropriate box to designate your residency status.
The DR 0104 and any tax payment owed are due April 15, 2020. Revenue Online will accept returns as timely filed until midnight. Returns that are mailed must be
If you are filing a joint return, and one person is a full-year
Colorado resident and the other is either a part-year resident or a nonresident, mark the Part-Year Resident/Nonresident box.
Page 4
Part-Year Colorado Residents and Nonresidents
Tax is prorated so that it is calculated only on income received
in Colorado or from sources within Colorado. We recommend you review publication FYI Income 6 if this applies to you. You will calculate your prorated tax by completing the DR 0104PN. You must submit the DR 0104PN with your return.
Persons Traveling or Residing Abroad
If you are traveling or residing outside the United States
on April 15, the deadline for filing your return is June 15, 2020. If you need additional time to file your return, you will automatically have until October 15, 2020, to file. Interest is
due on any tax paid after April 15, 2020. To avoid any late
payment penalties, you must pay 90% of your tax liability by June 15, 2020, file your return by October 15, 2020 and pay any remaining tax due at the time of filing. When filing your return, mark the “Abroad on Due Date” box on Revenue
Online or the paper return.
Active Duty Military
Under federal law, a military servicemember’s state of legal
residence does not change solely as the result of the service-
member’s assignment for service in another state. Consequently, a Colorado resident who enters into military service will remain a Colorado resident unless they officially change their state of
legal residence as described in DD Form 2058.
In general, military servicemembers who are Colorado residents are subject to the same income tax filing requirements as other
Colorado residents, even if they are serving in another state.
These requirements are described on the preceding page, under the heading “Who Must File This Tax Return.”
However, any military servicemember who spends at least 305 days of the tax year stationed outside of the United States on
active military duty may elect to be treated as a nonresident.
The servicemember may make this election by filing a return and checking the applicable box on Form 104PN.
Military servicemembers who are stationed in Colorado, but
are not Colorado residents, are not required to pay Colorado tax on their military income. However, any other Colorado source income of a nonresident servicemember is subject to
Colorado taxation.
Please see “Military Service Members — Special Filing Information” webpage on our website for additional information.
The residency rules described above for military servicemembers also apply generally to a
servicemember’s spouse if the spouse is residing with the servicemember either inside or outside of Colorado in compliance with the servicemember’s military orders. If a servicemember and their spouse
are nonresidents stationed in Colorado, any wages earned by the spouse for work performed in Colorado are not subject to Colorado taxation. The military spouse must complete a DR 1059, provide a copy to their employer when hired for employment, and submit a copy to the Department, along with a copy of their military ID card, when they file their Colorado return each year. The DR 1059 may be filed with the Department through Revenue Online, with DR 1778,
or as an attachment to a DR 0104 filed by paper.
Name and Address
Provide your name, mailing address, date of birth, Social
Security number, as well as the state of issue, last four digits, and the date of issuance of your state issued ID card in the provided spaces. If filing Married Filing Joint, provide the spouse’s information where prompted. Provide the spouse’s information ONLY if filing a joint return. Otherwise leave blank. All Departmental correspondence will be mailed to
the mailing address provided. We recommend you read publication FYI General 2 for the Privacy Act Notice.
Line 1 Federal Taxable Income
Refer to your federal income tax return to complete this line:
• Form 1040 line 11b
If your federal taxable income is a negative amount, be sure to enter the amount as such on your Colorado return. If submitting a paper return, put the negative amount in parentheses, for example ($1,234).
Do not enter your total income or wages on this line because it will make your tax too high. The Department will compare the amount you list here to the return you file with the IRS, so be very careful
to complete this correctly.
Additions
Line 2 State Addback
Refer to your federal income tax return to complete this line.
Enter $0 if you filed Form 1040 or 1040SR but did not itemize
your deductions on Schedule A.
Taxpayers who deduct general sales taxes on Schedule A
line 5a, Form 1040 or 1040SR, are not required to calculate this addback. If you deducted state income tax on Schedule
A line 5a, complete the worksheet below to calculate the Income Tax Deduction.
We recommend that you read publication FYI
Income 4 for special instructions before completing the worksheet below.
Complete the following worksheet to determine your state
income tax deduction addback.
a)
Is the amount on federal Form 1040 or
1040SR Schedule A line 5d greater than
the amount on federal Form 1040 or
1040SR Schedule A line 5e?
No. Enter the state income tax
deduction from federal Form 1040
or 1040SR Schedule A line 5a.
Yes. Subtract the amounts on federal
Form 1040 or 1040SR Schedule
A lines 5b and 5c from the
amount on line 5e. Enter the
result, but not less than $0.
$
b) Total itemized deductions from federal
Form 1040 or 1040SR Schedule A line 17
c)
The amount of federal standard deduction
you could have claimed (See instructions
federal Form 1040 or 1040SR line 9 for
2019 federal standard deductions.)
Transfer to line 2 of the DR 0104 the smaller amount from line (a) or (d) of the worksheet above.
Line 3 Other Additions
Enter the sum of the following and specify which addition(s)
in text box:
• Bond interest—the amount of any interest earned
from bonds issued by any state or political subdivision, excluding any bonds issued by the State of Colorado or its political subdivisions on or after May 1, 1980. Calculate the appropriate amount by subtracting the amortization of bond premiums and expenses (required to be allocated to interest income by Internal Revenue Code) from the gross amount of state and local bond interest. We recommend that you read publication FYI Income 52 if this applies to you.
•Improper distributions from a qualified state tuition program for which tuition program contribution subtraction was previously claimed. See FYI
Income 44 for additional information.
•Dependent child income—the amount from IRS Form 8814 line 14 or $1,050, whichever is smaller. Include this income only if you elected to report your child’s income on your federal income tax return.
•Charitable gross conservation easement—the amount of your federal charitable deduction for a conservation easement that is also claimed for a Colorado tax credit. Complete the DR 1305 Part D.
• Alien labor—the amount of expenses for
unauthorized alien labor services. We recommend that you read publication FYI Income 64 if this applies to you.
•Partnership/Fiduciary—the amount of any fiduciary adjustment or partnership modification that increases your federal taxable income.
•Any expenses incurred by a taxpayer with respect to expenditures made at, or payments made to, a club that restricts membership on the basis of sex, sexual orientation, marital status, race, creed, religion, color, ancestry or national origin.
•Distributions from a medical savings account not made for an eligible expense.
•Charitable hunger relief credit addback—the
amount of your federal charitable deduction for a donation for which a Credit for Food Contributed to
Hunger-Relief Charitable Organizations is claimed.
Line 4 Subtotal
Enter the sum of lines 1 through 3.
Line 5 Subtractions from the DR 0104AD Schedule, line 20
Transfer the amount from the DR 0104AD line 20 to report
any subtractions from your Federal Taxable Income. These subtractions will change your Colorado Taxable Income from
the amount of Federal Taxable Income. See instructions in the income tax booklet for additional guidance on completing this schedule. Do not enter negative amounts. To ensure faster processing of your paper return, the amount entered
Page 5
on line 5 must exactly match the amount on the DR 0104AD.
You must submit the DR 0104AD with your return.
Line 6 Colorado Taxable Income
Subtract line 5 from line 4. This is your Colorado taxable income and is the figure used to determine how much Colorado tax is owed, if any.
Part-Year Residents or Nonresidents Go To the DR 0104PN. Full-Year Residents Continue To Line 7
Line 7 Colorado Tax
The income tax rate is currently 4.5%. Full-year residents should refer to the tax table in this booklet. Determine the tax by the amount listed on line 6. Part-year residents and nonresidents
should transfer the apportioned tax amount from the DR 0104PN line 36. You must submit the DR 0104PN with your return.
Line 8 Alternative Minimum Tax
Enter the amount of any Alternative Minimum Tax. Generally, if you
pay alternative minimum tax on your federal income tax return, you will pay the same for your Colorado return. We recommend
that you read publication FYI Income 14 if this applies to you.
Line 9 Recapture of Prior Year Credits
Enter any credit claimed in prior years that is subject to recapture under Colorado law.
Line 10 Subtotal
Sum of lines 7 through 9.
Tax Credits
Visit Colorado.gov/Tax/Income-Tax-Credits to read more
about which tax credits can be claimed on this form.
Line 11 Nonrefundable Credits
Complete the DR 0104CR to claim various nonrefundable credits. Transfer the amount from the DR 0104CR line 41 to
this line. The nonrefundable credits used from the DR 0104CR combined with the total Nonrefundable Enterprise Zone Credit
used cannot exceed line 10. To ensure faster processing of your paper return, the amount entered on line 11 must exactly
match the amount on the DR 0104CR. You must submit the
DR 0104CR with your return.
Scan and submit any required documentation through Revenue Online E-Filer Attachment, attach
to your electronic return or mail paper documentation with the DR 1778 E-Filer Attachment.
Line 12 Nonrefundable Enterprise Zone Credits
Use your tax software, Revenue Online or the DR 1366 to calculate the total amount of Nonrefundable Enterprise Zone
Credits being used to offset the current year tax liability.
Complete the DR 1366 and transfer line 87 to this line. The total Nonrefundable Enterprise Zone Credit used combined with nonrefundable credits from the DR 0104CR cannot
exceed the amount on line 10. You must submit the DR 1366 and a copy of each certificate with your return.
The Department strongly recommends electronic filing for taxpayers with enterprise zone credits. Failure to file electronically may result in delays processing your return.
Page 6
Line 13 Strategic Capital Tax Credits
Use your tax software, Revenue Online or the DR 1330 to calculate the total amount of nonrefundable Strategic Capital Tax Credits being used to offset the current year tax liability. Complete the DR 1330 and transfer amount on line 5b to this
line. The total nonrefundable Strategic Capital Tax Credits used combined with nonrefundable credits from lines 11 and
12 cannot exceed the amount on line 10. You must submit the
DR 1330 and a copy of each certificate with your return. The Department strongly recommends electronic filing for taxpayers with Strategic Capital Tax credits. Failure to file
electronically may result in delays processing your return.
Please include a copy of each Strategic Capital Tax Credit Certificate
Line 14 Net Income Tax
Sum of lines 11, 12, and 13. Subtract that sum from line 10. This cannot be a negative number.
Line 15 Use Tax
Enter the amount from the DR 0104US schedule line 7. If you
did not have any purchases from retailers who do not collect
Colorado state sales tax, then leave this line blank and DO
NOT fill out the DR 0104US schedule. For more information on your consumer use tax obligation, including how to use the new
annual customer reports from non-collecting retailers, please
visit Colorado.gov/Tax/UseTax. If you are reporting use tax on this return, you must submit the DR 0104US with your return.
Line 16 Net Colorado Tax
Sum of lines 14 and 15.
Line 17 Colorado Income Tax Withheld
Enter the sum of all Colorado income tax withheld as reported on W-2, W-2G and/or various 1099 statements.
Enclose your Colorado withholding forms where indicated or, if filing electronically, scan and submit them through Revenue Online E-Filer Attachments.
Failure to submit your withholding forms will
result in the credit being denied. Do NOT include
withholding for federal income tax, income tax from
another state, or income tax from local governments.
Be certain to exclude amounts withheld from
Colorado real estate sales by nonresidents, nonresident beneficiary withholding, or Colorado partnership or S Corporation income withholding
for nonresidents because these specified amounts should be listed on line 21.
Line 18 Prior-year Estimated Tax Carryforward
Enter the amount, if any, from your 2018 Colorado DR 0104 line 27.
Line 19 Quarterly Estimated Payments
Carefully review your payment(s) before completing this
line. Use Revenue Online (Colorado.gov/RevenueOnline) to verify estimated taxes paid on your account. Doing so will reduce processing delays. Most taxpayers who have made
quarterly estimated payments used the DR 0104EP to remit these payments. Refer to FYI Income 51 for more information about Estimated Payments.
Line 20 Extension Payment
Enter the amount, if any, you remitted with the DR 0158-I to ensure 90% of your tax was paid by the filing due date.
Line 21 Other Prepayments
Enter the sum of payments remitted on your behalf because
you received Colorado income from:
•an estate as a beneficiary – remitted using the
DR 0104BEP, and/or
•partnership or shareholder agreement–remitted using the DR 0108, and/or
•a real estate transaction that closed during the tax year for which you are filing this return
– remitted using the current DR 1079.
Be sure to mark corresponding box(es) as appropriate.
Line 22 Gross Conservation Easement Credit
Complete all applicable parts of the DR 1305. Enter the
amount from the DR 1305G line 33. You must submit the
DR 1305G with your return.
Line 23 Innovative Motor Vehicle and
Innovative Truck Credit
Complete one Form DR 0617 for each vehicle, truck, trailer, or modification claimed, then enter the amount (or sum) from
each DR 0617 line 9 and/or line 18. You must submit each DR 0617 with your return. NOTE: If you assigned the credit to a financing entity you will not submit a Form DR 0617. For
additional information, please refer to FYI Income 69.
For each Form DR 0617, you must also submit copies
of the title, purchase invoice, lease agreement, or conversion receipts, along with proof of permanent Colorado registration for each vehicle for which you
are claiming a credit. For financing entities that accept assignment of the credit, a completed Form DR 0618 must be submitted for each vehicle claimed.
Line 24 Refundable Credits
Complete the DR 0104CR to claim various refundable credits. Transfer the amount from the DR 0104CR line 8 to this line.
You must submit the DR 0104CR with your return.
See the DR 0104CR for the required documentation for the credit claimed. Submit using Revenue Online, attach to an electronically filed return as a PDF or attach to your paper return.
Line 25 Subtotal
Sum of lines 17 through 24.
Line 26 Federal Adjusted Gross Income
Refer to your 2019 federal income tax return to complete this line:
• Form 1040 line 8b
If your federal adjusted gross income is a negative amount, be sure to enter the amount as such on your Colorado return. If submitting a paper return, put the negative amount in parentheses, for example ($1,234).
Compare lines 16 and 25. If line 16 is greater, skip to line 38. If line 25 is greater, continue to line 33.
Line 33 Overpayment
Subtract line 16 from line 25.
Line 34 Estimated Tax Carryforward
Enter the amount, if any, you would like to be available for
2020 estimated tax.
Line 37 Refund
Subtract line 34 from line 33. This is the amount of your refund. You have the option of authorizing the Department
to directly deposit these funds to your bank or CollegeInvest account. Otherwise, a refund check will be mailed to the
address you have designated on this return.
•Direct Deposit—Enter the routing and account numbers and account type. The routing number is 9 digits. Account numbers can be up to 17 characters (numbers and/or letters). Include hyphens, but do NOT enter spaces or special
symbols. We recommend that you contact your financial institution to ensure you are using the correct information and that they will honor a direct deposit. See the sample check below to assist you in finding the account and routing numbers.
Did you know you can now direct deposit your tax refund into a new or existing CollegeInvest
account? Please contact 1-800-448-2424 or visit CollegeInvest.org for more information.
•Intercepted Refunds—The Department will intercept your refund if you owe back taxes or if you owe a balance to another Colorado government agency or the IRS. If you are filing a joint return and
only one party is responsible for the unpaid debt, you may file a written claim to: Injured Spouse
Desk, 1375 Sherman Street, Room 240, Denver, CO 80261. Claims must include a copy of your federal income tax return, federal form 8379 and copies of all W-2, W-2G, or any 1099 statements
received by both parties. DO NOT attach your claim to this return. It will not be processed.
Line 38 Net Tax Due
Subtract line 25 from line 16. This is the amount you owe with this return. If you are filing after the due date (or valid extension) or you owe estimated tax penalty, continue to the next line. If you are filing timely and do not owe penalty or interest, go to line 42.
Line 39 Delinquent Payment Penalty
Calculate any penalty owed for delinquent filing or payment.
The penalty is the greater of $5 or 5% of the net tax due for the first month after the due date and increased by 0.5%
for each additional month past the due date. The maximum penalty is 12%. If you prefer not to calculate this penalty, the
Department will bill you.
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Line 40 Delinquent Payment Interest
Calculate any interest owed for delinquent filing or payment.
The interest rate is 6% of the net tax due. If you prefer not to
calculate this interest, the Department will bill you. Interest on
any bill issued that remains unpaid after 30 days of issuance will increase to 9%.
Line 41 Estimated Tax Penalty
To calculate this penalty, complete the form DR 0204. Enter any estimated tax penalty owed on this line. You must submit the DR 0204 with your return. If you over compute your estimated tax penalty from what the Department calculates, any amount of overpayment of penalty will be refunded to you.
Scan and submit the form DR 0204 through Revenue Online E-Filer Attachments or submit the form to your paper return.
Line 42 Amount You Owe
Enter the sum of lines 38 through 41. You have three payment options. Please note: Any assessment made by the
Department will likely include delinquent payment penalty and interest. The only way to avoid paying penalty and interest is to pay in full by the filing due date.
•Pay Online—After submitting your return on Revenue Online, you will be given the opportunity to submit an online payment with your credit card, e-check or by Electronic Funds
Transfer (EFT). A nominal processing fee may apply. If you file a paper return, you may still choose to pay electronically. Visit Colorado.gov/ RevenueOnline for details.
•Pay by Mail—If filing by Revenue Online or other electronic filing method and you wish to
send a check or money order, complete the form
DR 0900 and mail with your payment. Make payable to “Colorado Department of Revenue” and clearly write your Social Security number and “2019 DR 0104” on the memo line. Be sure
to keep a copy of the money order or note the check number with your tax records.
•Payment Plan—The Department will issue a bill for any unpaid balance due. When you receive the bill, you may set up a payment plan as instructed on the bill.
Third Party Designee
Mark the “Yes” box to allow the Colorado Department of Revenue to discuss this tax return with the paid preparer or designee who signed it. This authorization is valid for any period of time and can be revoked with a written statement to the Department. Revocations must declare the return filing
period and tax type, must designate that the Third Party Designee is being revoked and must be signed and dated by the taxpayer and/or designee. By completing this area of the return, the taxpayer is granting the designee the ability to:
•Provide any missing information needed for the processing of the return, and
•Call the Department for information about the return, including the status of any refund or processing time, and
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•Receive upon request copies of notices, bills or transcripts related to the return, and
•Respond to notices about math errors, intercepts and questions about the preparation of the return.
This designation does not allow the third party to receive any
refund check, bind the taxpayer to anything (including any additional tax liability), or otherwise represent the taxpayer
before the Colorado Department of Revenue. In order to expand the designee’s authorization, complete the DR 0145
Power of Attorney for Department-Administered Tax Matters and submit via Revenue Online.
W-2s and 1099s
When filing a paper return, all W-2s and/or 1099s that show Colorado income tax withholding must be attached to the front of the form where indicated. When
filing an electronic return, attach scanned copies of all W-2s and/or 1099s that show Colorado income tax withholding to the e-filed tax return. If you are unable to
attach W-2s and/or 1099s to your e-filed return, submit through Revenue Online, Colorado.gov/RevenueOnline.
Revenue Online and Secure Messaging
The Department offers many services through Revenue Online.
You can file or amend a return, submit required return attachments,
monitor your account activity, pay taxes, check the status of a
refund, file a protest and send a secure message to Department staff. Visit Colorado.gov/RevenueOnline to get started.
Taxation Website
Visit the official Colorado Department of Revenue’s Taxation Division website, Colorado.gov/Tax, for tax
forms, FYI publications, education resources, legal research and more.
Call Center
Representatives are available Monday through Friday, 8 a.m. to 4:30 p.m.
303-238-SERV (7378)
TTY/TDD 800-659-2656
Walk-in Assistance
Forms and information are available Monday through Friday, 8 a.m. to 4:30 p.m.
Denver—1375 Sherman Street
Colorado Springs—2447 North Union Boulevard Fort Collins—3030 South College Avenue Grand Junction—222 South 6th Street, Room 208
Pueblo—827 West 4th Street, Suite A
Common Issues
Did Not Receive W-2 Statement from Your Employer
•Contact your employer to request a copy, or
•Use the year-to-date (YTD) Colorado wages and withholding amounts from your final paycheck
stub to complete a Substitute W-2, form
DR 0084 and submit both with your return.
Records Retention
Keep all documentation you used to prepare your return
at least 4 years after the due date, which is the statute of
limitations for the Department to make changes to your return.
However, if the Department does not receive your return, they may file on your behalf using the best information available.
There is no statute of limitations for assessment if a return is
not filed.
Correcting Errors or Changing a Return
Individual income tax returns from 2009 and forward may be amended electronically through Revenue Online. Filing and
amending returns in Revenue Online is a free service. You may amend online even if the original return was filed on paper.
Revenue Online has all the information from your original return. You will not need to re-enter everything.
•If you cannot amend online, you may file the
DR 0104X. Make sure you use the appropriate form version for the year you are amending.
•If you are changing your Colorado return
because the IRS made changes to your federal return, you must file the DR 0104X within 30 days of being notified by the IRS. You must amend your Colorado return in this case, even if there is no net change to your tax liability.
IT IS VERY IMPORTANT THAT YOU SUBMIT ALL SCHEDULES AND SUPPORTING DOCUMENTATION FOR ANY CHANGES WITH YOUR AMENDED RETURN. YOU MUST SUBMIT ALL SCHEDULES, EVEN IF YOU ARE NOT CHANGING THOSE VALUES.
Estimated Tax Requirements
If you expect next year’s Colorado tax liability to be greater than $1,000 after subtracting credits, you should make estimated tax payments using the DR 0104EP. We recommend that you read publication FYI Income 51 for additional information.
Filing Errors and Incomplete Information
It is important to read all the information available for your specific tax situation and to submit all required documentation with your return. Failure to do so may result in delayed
processing of your return and refund, if any. We recommend that you file using Revenue Online to avoid common
mathematical errors. You may also opt to use a commercial tax preparation software program or a paid tax professional
to help you complete your return.
Federal Earned Income Tax Credit and Colorado Insurance Programs
Individuals whose income does not exceed certain
thresholds and/or have qualifying children may be eligible for a refund resulting from the federal Earned Income Tax
Credit (EITC) and/or low-cost health insurance through
Child Health Plan Plus (CHP+). You may obtain additional information regarding the EITC online at IRS.gov or by calling Colorado United Way at 211. Additional information regarding CHP+ may be found at CCHP.org or by calling 1-800-359-1991.
Line-by-Line Instructions for the DR 0104AD - Subtractions from Income Schedule
If you use this schedule to claim any subtractions from your income, you must submit it with the DR 0104.
Line 1 State Income Tax Refund
Refer to your federal income tax return to complete this line. If you did not complete federal Schedule 1,
Form 1040 or 1040SR, enter $0. Otherwise, enter the amount from line 10, Schedule 1, Form 1040 or 1040SR.
Line 2 U.S. Government Interest
Enter the sum of all interest earned from U.S. government bonds, treasury bills and other obligations of the U.S. or its territories, possessions and agencies that you reported on your federal income tax return and is calculated as part of your federal taxable income. We recommend that you read publication FYI Income 20 if this applies to you.
Do not include interest earned from Federal National Mortgage Association and Government National Mortgage Association (Fannie Mae and Ginnie Mae). Dividends from mutual funds may not be 100% exempt.
Line 3 Pension and Annuity
Subtraction
You might be eligible to subtract the income you earned from a
pension or annuity. We recommend that you read publication
FYI Income 25 if this applies to you. This subtraction is allowed only for pension or annuity income that is included in your federal taxable income. The amount of subtraction you can claim is also limited based upon your age.
As of December 31, 2019, if you were:
•Age 65 or older, then you are entitled to subtract
$24,000 or the total amount of your taxable pension/annuity income, whichever is smaller; or
•At least 55 years old, but not yet 65, then you are entitled to subtract $20,000 or the
total amount of your taxable pension/annuity income, whichever is smaller; or
•Younger than 55 years old and you received
pension/annuity income as a secondary beneficiary (widow, dependent child, etc.) due to the death of the person who earned the pension/annuity, then you are entitled to
subtract $20,000 or the total amount of your secondary beneficiary taxable pension/annuity income, whichever is smaller. If this applies to you, please list the Social Security number of the deceased in the space provided.
Pension/annuity income should not be intermingled between spouses. Each spouse must meet the
requirements for the subtraction separately and claim the subtraction only on their pension/annuity income. Any qualifying spouse pension/annuity income should be reported on line 4.
Submit copies of all 1099R and SSA-1099 statements with your return. Submit using
Revenue Online or attach to your paper return.
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Line 4 Spouse Pension and
Annuity Subtraction
If the secondary taxpayer listed on a jointly filed return is
eligible for the pension and annuity subtraction, enter the qualifying amount on this line. Review the instructions for line 3 to see what amount qualifies. We recommend that
you read publication FYI Income 25 if this applies to you.
Take precautions to report the subtraction on the correct line. The first person listed on the return shall report on line 3 and the second person listed shall report on line 4.
Line 5 Military Retirement Subtraction
You might be eligible to subtract the income you earned from your military retirement benefits. We recommend
that you read publication FYI Income 25 if this applies to you. This subtraction is allowed only for military
retirement income that is included in your federal taxable income. To qualify, you must have been 54 years of age or younger as of December 31,2019. If you meet the age requirement, then you are entitled to subtract $4,500
or the total amount of your taxable military retirement benefits, whichever is smaller.
Military retirement benefits should not be intermingled between spouses. Each spouse must meet the
requirements for the subtraction separately and claim the subtraction only on their military retirement benefits. Any qualifying spouse military retirement benefits should be reported on line 6.
Submit copies of all 1099R statements with your return. Submit as attachments when e-filing or using Revenue online, or include with your
paper return.
Line 6 Spouse Military Retirement
eligible for the military retirement subtraction, enter the qualifying amount on this line. Review the instructions for line 5 to see what amount qualifies. We recommend that you
read publication FYI Income 25 if this applies to you.
Take precautions to report the subtraction on the correct line. The first person listed on the return must report on line 5 and the second person listed must report on line 6.
Line 7 Colorado Capital Gain
You might be eligible to subtract some or all of the capital gain included in your federal taxable income, if the gain is derived from the sale of tangible personal property or from the sale of real property located in Colorado. The amount of this subtraction is limited to $100,000. We recommend that you read publication FYI Income 15 if this applies to you.
You must complete and submit the DR 1316 with your return. Take precaution to completely fill out
each item of this form. Be as detailed as possible, especially when providing property descriptions, ownership, and dates of acquisition and sale.
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Line 8 CollegeInvest Contribution
Contributions to CollegeInvest can be deducted from your return. The contribution must have been included on your federal income tax return and calculated as part of your federal taxable income. We recommend that you read publication FYI Income 44 if this applies to you.
The three fields on line 8 should be left blank if the
taxpayer and/or spouse are the CollegeInvest account owners who set up the account for the student beneficiary. If you are not the account owner (e.g.
grandparent, friend,) complete the three additional fields. To report contributions to more than one account, you must file electronically. Do not deduct
contributions made to a tuition savings plan for another state or any tuition you paid while attending school.
Do NOT deduct contributions made by your employer/ business to your College Invest account on this line. To claim pass-through credits for employer contributions to employee 529 qualified state tuition account, please refer to the instructions on form DR0289 and report the credit on applicable credit schedule.
Line 9 Qualifying Charitable Contributions
Taxpayers who make charitable contributions that would be eligible for a federal income tax deduction, but do not claim federal itemized deductions on Schedule A of form 1040 or 1040SR, might be eligible to deduct a portion of their contribution on this form. We recommend that you read publication FYI
Income 48 if this applies to you. Use the worksheet on the next
page to determine your qualifying contribution.
(a) Did you itemize your deductions on Schedule
A of federal form 1040 or 1040SR?
Yes
No
(b) Did you deduct charitable contributions on
the federal form?
If you answered Yes on either (a) or (b) above, enter $0 on line 9; you do not qualify for this subtraction. If you answered No on both
(a) and (b) above, continue below.
(c)Enter the amount you could have deducted as charitable contributions on lines 11 and
12 of federal Schedule A.
(d) Colorado adjustment
$500
(e)Subtract line (d) from line (c). This is the qualifying amount. If the amount is greater than $0, transfer to line 9.
Enter the total contributions in the space provided and the subtraction after the $500 adjustment on line 9.
Do not enter an amount on this line if you already
deducted your charitable donation on Schedule A of the federal 1040 or 1040SR form. Otherwise, you will be issued an assessment that will likely include
penalty and interest.
For claims greater than $5,000, submit the receipts you received at the time of donation. For in-kind donations, submit an itemized list of the donated items and their fair market value. Submit using Revenue
Online or attach to your paper return. Do not send receipts of items that were purchased for donation.
Line 10 Qualified Reservation Income
List any amount of income that was derived wholly from reservation sources by an enrolled tribal member who lives on the reservation, which was included as taxable income on
the Federal income tax form.
Submit proof of tribal membership, residence, and source of income. This must be submitted every three years by taxpayers claiming this subtraction.
Line 11 PERA/DPSRS Subtraction
If you made contributions to PERA between July 1, 1984, and December 31, 1986, or to Denver Public Schools District No. 1 Retirement during 1986 and your 2019 federal taxable income includes pension income, see FYI Income 16 to determine if you can take a subtraction for any of your pension income.
Submit a copy of your previously taxed contribution. PERA statements can be obtained from Copera.org or by calling 1-800-759-7372. Submit using Revenue Online or attach to your paper return.
Do not list the amount of contributions you made as an employee this past year.
Line 12 Railroad Benefit
List any railroad retirement benefits that you reported on your federal income tax return and is calculated as part of your federal taxable income. We recommend that you read publication FYI Income 25 if this applies to you.
Submit copies of all RRB-1099 and RRB-1099R
Statements. Submit using Revenue Online or submit with your paper return.
Line 13 Wildfire Mitigation Measures
Enter the amount incurred in performing wildfire
mitigation on your land, up to $2,500. We recommend that you read publication FYI Income 65 to properly calculate this subtraction.
Submit copies of receipts for qualified costs for wildfire
mitigation for your property. Submit using Revenue
Online or submit with your paper return.
Line 14 Colorado Marijuana Business Deduction
For Colorado-licensed marijuana businesses, list any
expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed by section 280E of the Internal Revenue Code because marijuana is a controlled substance under federal law.
To calculate this deduction, you must create pro forma federal schedule(s) for Business Profit or Loss as if the federal government would have allowed the expenditures from the marijuana business. The Colorado deduction shall be the difference between the profit/loss as calculated on the ACTUAL schedule(s) filed with the federal return and the pro
forma schedule(s) described above.
You must submit both the pro forma federal schedule(s) and the actual federal schedule(s) with your Colorado return when claiming this deduction. Submit using Revenue Online or submit with your paper return.
Filing your Colorado tax return can seem daunting, but breaking down the process into manageable steps makes it easier to tackle. Remember, the key to a successful tax filing is accuracy and timeliness, ensuring that you pay the right amount and avoid any potential penalties. As you prepare to fill out your tax form, ensure you have all the necessary documents handy, including your federal tax return, W-2 forms, and any other relevant financial records. Following the outlined steps carefully will help streamline the process.
After you submit your tax return, monitor your filing status through the Revenue Online service and keep an eye out for any correspondence from the Colorado Department of Revenue. Filing your taxes correctly and on time is crucial to avoid any unnecessary stress or financial penalties. If you encounter any difficulties or have questions about specific deductions or credits, don't hesitate to seek additional resources or professional help.
Who needs to file a Colorado income tax return?
Any individual who is a full-year resident, a part-year resident who received taxable income while living in Colorado, or a non-resident who received income from Colorado sources must file a Colorado income tax return. Additionally, if you're required to file a federal income tax return with the IRS for the year, you must also file a Colorado income tax return. This includes Colorado residents who might not have a Colorado tax liability but are still required to file with the IRS.
How can I file my Colorado income tax return?
You can file your Colorado income tax return electronically using the state's free and secure Revenue Online service at Colorado.gov/RevenueOnline, private e-File software, or with the assistance of a paid tax preparer. Electronic filing is recommended to reduce the chance of errors, which can delay processing. If you are unable to file electronically, you can mail your return using the enclosed forms. Be sure to send your forms to the correct address, either with or without payment, as listed in your tax booklet.
What if I am a part-year resident or nonresident?
If you were a resident of Colorado for only part of the year or you are a nonresident who earned income from Colorado sources, you need to prorate your tax. This means your tax will be calculated only on the income earned in Colorado or from sources within the state. Complete the DR 0104PN to calculate your prorated tax; this form must be submitted with your return. It is advisable to review publication FYI Income 6 for detailed information on filing as a part-year resident or nonresident.
What are my filing options if I'm serving in the military?
Military service members who are Colorado residents but are stationed outside the state maintain their Colorado residency, unless they officially change their state of legal residence. Those who spend at least 305 days of the tax year outside the United States on active duty can choose to be treated as nonresidents for tax purposes. Nonresident service members stationed in Colorado aren't required to pay Colorado tax on their military income, but any other income earned from Colorado sources is taxable. For nonresidents, certain wages earned by a spouse for work performed in Colorado may not be subject to state taxation, provided specific criteria are met. Service members and their spouses should consider filing the DR 1059 form and submitting it alongside their Colorado return for potential tax relief on spousal earned income. Detailed information for military service members is available on the "Military Service Members — Special Filing Information" webpage.
These mistakes can delay the processing of tax returns, result in unexpected bills, or affect refund amounts. It's important to review your tax return carefully, ensure all information is accurate, and consult the filing guide or a tax professional if you have any doubts.
When preparing Colorado tax forms, individuals may need to provide additional documentation and complete various other forms. These documents are crucial for accurately determining tax liability, claiming deductions, or complying with state tax regulations. Here's an overview of ten such documents and their purposes:
It is essential for individuals to gather and prepare these documents before filing their Colorado state tax return. Completeness and accuracy in documentation can prevent processing delays, ensure compliance with tax regulations, and potentially maximize tax refunds or minimize liabilities. Individuals are encouraged to consult with a tax professional or use trusted tax preparation software to assist in this process.
The Colorado Tax form is similar to the Internal Revenue Service (IRS) Form 1040, used for filing individual federal income tax returns. Both documents are designed to collect income information, calculate tax liability, and determine the appropriate tax refunds or payments due from individuals. Each form gathers details about the taxpayer's income sources, such as wages, interest income, dividends, and capital gains. They both allow for deductions and credits to reduce taxable income, although the specifics of these deductions and credits vary between the federal and state levels. For example, the Colorado form includes schedules for state-specific subtractions from income, such as the DR 0104AD 2019 Subtractions from Income Schedule, paralleling the way federal adjustments are made on Schedule 1 of the IRS Form 1040.
Similarly, the Colorado Tax form also echoes the functionality of the Schedule A (Itemized Deductions) of the federal tax code in its approach to deductions, despite the fact that state-specific forms like the DR 0104AD do not directly correspond on a one-to-one basis. Both are designed to allow taxpayers to reduce their taxable income by enumerating eligible expenses such as certain medical costs, taxes paid, interest paid, charitable contributions, and losses due to theft or casualty. While the federal Schedule A is part of the IRS Form 1040 process, Colorado integrates such deductions directly into its core tax forms or through state-specific schedules that capture similar types of deductions that are allowable under Colorado's tax law.
When completing the Colorado Tax form, it's essential to follow guidelines closely to ensure accuracy and compliance. Below is a compilation of do's and don'ts to consider:
Properly completing the Colorado Tax form is crucial for meeting legal obligations and maximizing potential benefits under the law. By adhering to these guidelines, you can navigate the process more smoothly and efficiently.
Understanding Colorado tax forms can often feel overwhelming due to common misconceptions. Here's a breakdown to help clarify some of these common misunderstandings:
Clearing up these misconceptions can make completing your Colorado tax forms less daunting and help ensure that your tax filing process is as smooth and accurate as possible.
Filling out the Colorado Tax form accurately requires keen attention to detail and a careful review of all the instructions provided in the tax filing guide. Gathering all necessary documentation beforehand, such as income statements and any applicable deduction information, can streamline the process and minimize errors.
Finally, remember to review all deductions and credits meticulously to ensure you're not missing out on refund opportunities or reporting inaccuracies that could result in processing delays or penalties. Checking the tax table provided in the tax booklet can also help you accurately calculate your owed taxes or potential refunds.
Last Will and Testament Colorado - It allows for the exclusion of certain individuals from inheriting, providing clarity and preventing assumptions.
Colorado 3006 - Using the form effectively can help landlords avoid unnecessary legal fees and complications.