Colorado Colorado Income Tax Return
Extracted from PDF file 2020-colorado-form-104.pdf, last modified January 2021
Colorado Income Tax Return(01/15/21) 104 Book Booklet Includes: 2020 Instructions DR 0104 Related Forms Full-Year, Part-Year and Nonresident Individuals Colorado Individual Income Tax Filing Guide This book includes: DR 0104 2020 Colorado Individual Income Tax Form DR 0104CH 2020 Voluntary Contributions Schedule DR 0900 2020 Individual Income Tax Payment Form DR 0104AD 2020 Subtractions from Income Schedule DR 0158-I 2020 Extension Payment for Colorado Individual Income Tax DR 0104PN Part-Year Resident/Nonresident Tax Calculation Schedule 2020 DR 0104US 2020 Consumer Use Tax Reporting Schedule DR 0104CR Individual Credit Schedule 2020 Disclosure of Average Taxes Paid Colorado Income Tax Table Description of Voluntary Contribution organizations MAILING ADDRESS FOR FORM DR 0104 WITH WITHOUT PAYMENT PAYMENT COLORADO DEPARTMENT OF REVENUE Denver, CO 80261-0006 COLORADO DEPARTMENT OF REVENUE Denver, CO 80261-0005 Mail To Mail To These addresses and zip codes are exclusive to the Colorado Department of Revenue, so a street address is not required. Tax.Colorado.gov Page 2 Disclosure of Colorado Expenditures and Revenues ** Due to rounding, the values in each chart may not sum to 100% Expenditures by Function Revenues by Source Transportation Other 6.9% 4.7% Justice 5.8% Other 2.7% Federal Grants & Contracts 36.5% Taxes 37.3% Business, Community & Consumer Affairs 14.1% Interest & Rents 2.7% License, Permits & Fines 2.6% Education 35.4% Charges for Goods & Services 18.2% Social Assistance 33.1% Disclosure of Average Taxes Paid by Income Group - 2017 Average State Taxes Paid Individual Income Sales and Use Gasoline Driver License and Vehicle Registration Fees Alcoholic Beverages Cigarettes and Tobacco Total State Taxes $0 to $15,000 1 $15,000 to $29,999 $30,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 and more Average 2 $89 $307 $92 $327 $350 $112 $741 $447 $150 $1,098 $480 $165 $1,599 $599 $185 $2,467 $702 $225 $3,899 $945 $259 $5,811 $1,257 $271 $18,125 $2,964 $503 $2,850 $752 $196 $91 $126 $162 $171 $189 $215 $242 $260 $269 $181 $3 $42 $623 $3 $42 $960 $5 $53 $1,558 $6 $49 $1,969 $8 $50 $2,629 $10 $51 $3,671 $15 $43 $5,403 $17 $38 $7,654 $51 $58 $21,971 $11 $47 $4,037 Average Local Taxes Paid Residential Real Property Sales and Use Specific Ownership 3 Occupational Privilege 4 Total Local Taxes $830 $487 $11 $2 $1,330 $1,035 $555 $30 $5 $1,625 $1,273 $710 $26 $8 $2,016 $1,572 $762 $21 $10 $2,365 $1,638 $950 $33 $13 $2,635 $2,222 $1,113 $35 $18 $3,388 $3,104 $1,499 $34 $27 $4,664 $4,726 $1,994 $16 $38 $6,774 $11,256 $4,702 $27 $118 $16,102 $2,492 $1,192 $27 $21 $3,732 Average Federal Taxes Paid Individual Income Medicare Social Security Total Federal Taxes $651 $115 $493 $1,259 $1,198 $271 $1,160 $2,629 $2,339 $421 $1,798 $4,558 $3,476 $544 $2,325 $6,345 $5,397 $717 $3,068 $9,182 $8,832 $1,001 $4,278 $14,110 $14,690 $1,438 $6,147 $22,274 $24,530 $1,949 $8,333 $34,812 $104,556 $3,635 $9,607 $117,799 $13,346 $910 $3,447 $17,703 Average Total Taxes Paid $3,213 $5,214 $8,132 $10,679 $14,446 $21,169 $32,341 $49,239 $155,872 $25,472 $446 $1,185 $1,985 $2,603 $3,452 $4,821 $6,929 $9,355 $10,992 $3,854 Average Total Taxes Paid by Employers 5 Sources: Colorado and Federal income tax return data and the Bureau of Labor Statistics’ Consumer Expenditure Survey (CES) Note: The values presented in this table are estimates because actual values are not known. Income and taxes paid were estimated using Colorado, federal, and third party data sources. The population is limited to full-year resident Colorado households that filed 2017 state and federal income tax returns. Income includes taxable and nontaxable income as well as transfer payments (such as public assistance, supplemental security income, and nutrition assistance). 1 Households estimated to have negative income are excluded from this table because we cannot estimate their taxes paid. Negative income is associated with self-employment, investment losses, and other losses. 2 The Average represents the total taxes paid divided by the total number of income tax returns. The Average was calculated for each row by multiplying the average tax paid for each income group by the number of returns in that income group, and then summing those values together and dividing by the total number of returns. 3 Specific ownership taxes are local property taxes on motor vehicles. 4 The occupational privilege tax is also known as the “head” tax. Table of Contents Disclosure of Average Taxes Paid.............................. 2 Using this Guide: Filing Instructions........................... 3 Taxpayer Service and Assistance............................... 9 Tax Table.................................................................. 15 DR 0104: Colorado Return for All Resident Types....... 17 DR 0104CH: Voluntary Contributions Schedule....... 21 DR 0104AD: Subtractions from Income Schedule... 23 DR 0900: Individual Payment Form......................... 25 DR 0158-I: Extension Information and Form............ 27 DR 0104PN: Part–Year Resident/Nonresident Tax Calculation Schedule......................................... 29 DR 0104US: Consumer Use Tax Reporting Schedule... 33 DR 0104CR: Individual Credit Schedule.................. 35 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 Tax.Colorado.gov, 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 included with your paper return. In-depth tax information is available in our easy to understand guidance publications, which include examples and worksheets. This symbol lets you know when such a publication is available for a subject. All guidance publications are available in the Tax Policy and Research section at Tax.Colorado.gov. 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 (you must file the DR 0104 along with the DR 0104PN), or • Not a resident of Colorado, but received income from sources within Colorado (you must file the DR 0104 along with the DR 0104PN). 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 The DR 0104 and any tax payment owed are due April 15, 2021. Revenue Online will accept returns as Page 3 timely filed until midnight. Returns that are mailed must be 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 representatives 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 including the DR 0102 and a copy of the death certificate with 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 separately, 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 included with a paper return. Line–by–Line Instructions for the DR 0104 First, complete the federal income tax return you will file with the IRS. 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. 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 Income Tax Topics: Part-Year Residents & Nonresidents if this applies to you. You will calculate your prorated tax by completing the DR 0104PN. You must submit the DR 0104PN along with the DR 0104. 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, 2021. If you need additional time to file your return, you will automatically have until October 15, 2021, to file. Interest is due on any tax paid after April 15, 2021. To avoid any late payment penalties, you must pay 90% of your tax liability by April 15, 2021, file your return by October 15, 2021 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 servicemember’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 Tax.Colorado.gov/military-servicemembers 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 included with a DR 0104 filed by paper. Name and Address Provide your name, mailing address, date of birth, Social Security number and the state of issue, the last four digits, and the date of issuance of your state issued ID card in the provided spaces. If filing Married Filing Jointly, 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 15 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 the Individual Income Tax Guide 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 12 for $ 2020 federal standard deductions.) d) Line (b) minus line (c), but not less than $0 $ Transfer to line 2 of the DR 0104 the smaller amount from line (a) or (d) of the worksheet above. Page 5 Line 3 Business Interest Expense Deduction Addback Taxpayers who claimed a deduction for business interest under section 163 of the Internal Revenue Code are required to add to federal taxable income any additional deduction allowed as a result of the federal CARES Act (Public Law 116-136). The amount of the addition is equal to the difference (if any) between the amount the taxpayer actually claimed as a deduction on the federal return (the “amount claimed”), and the amount the taxpayer could have claimed if the CARES Act did not amend section 163(j) (the “amount allowed”). The amount claimed will normally be found on line 30 of IRS form 8890. In general, calculating the amount allowed will require an adjustment to the applicable percentage, used in calculating line 26 of IRS form 8890, from 50% to 30%. Additionally, taxpayers who made an election under section 163(j)(10) (B) to use 2019 adjusted taxable income for taxable years beginning in 2020 must use adjusted taxable income for 2020 to calculate the amount allowed. Other special rules may apply to particular taxpayers, and taxpayers should review section 163(j) of the Internal Revenue Code and section 2306 of the CARES Act for further information. Line 4 Excess Business Loss Addback Taxpayers with losses from a trade or business are required to add to federal taxable income any excess business loss, as determined under section 461(l) of the Internal Revenue Code, as if the limitation established by such section was not suspend by the federal CARES Act (Public Law 116-136). Taxpayers are required to compute and add back any excess business loss disregarding the changes made by section 2304 of the CARES Act except the change made by section 2304(b)(2)(B). Section 2304(b) (2)(B) specified that the excess business loss is determined without regard to any deductions, gross income, or gains attributable to any trade or business of performing services as an employee. For example, in calculating excess business loss, wages and unemployment compensation are not included in a taxpayer’s aggregate gross income or gain for the taxable year which is attributable to such trades or businesses. In general, a taxpayer must add to federal taxable income the excess (if any) of: (a) the aggregate federal deductions of the taxpayer for the taxable year which are attributable to trades or businesses of such taxpayer, over (b) the sum of: (i) the aggregate gross income or gain of such taxpayer which is attributable to such trades or businesses, plus (ii) $259,000. Again, such excess is determined without regard to any deductions, gross income, or gains attributable to any trade or business of performing services as an employee. The amount of aggregate federal deductions should take into account any reductions to the allowable business interest deduction resulting from the addition required on line 3, above. Other special rules may apply to particular taxpayers, and taxpayers should review section 461(l) of the Internal Revenue Code and section 2304 of the CARES Act for further information. Line 5 Net Operating Loss Addback: Taxpayers who claimed a net operating loss deduction under section 172 of the Internal Revenue Code are required to add to federal taxable income any additional deduction allowed as a result of the federal CARES Act (Public Law 116-136). The amount of the addition is equal to the difference (if any) between the amount the taxpayer actually claimed on the federal return (the “amount claimed”), and the amount the taxpayer could have claimed if the CARES Act did not amend section 172 (the “amount allowed”). The amount claimed will normally be the net operating loss deduction entered on schedule 1, line 8 of IRS forms 1040 and 1040-SR. In general, the amount allowed is computed by reducing that portion of the deduction for net operating losses arising in taxable years beginning after December 31, 2017 to the extent such losses exceed 80% of taxable income (computed without regard to the deduction under section 172). For the purpose of this calculation, taxable income is reduced by any deductions allowed under sections 199A and 250 of the Internal Revenue Code. Federal taxable income should take into account any reductions to the allowable business interest deduction resulting from the addition required on line 3, above, and to allowable business losses resulting from the addition required on line 4, above. Any required addition calculated for line 5 should be reduced by any addition reported on line 6 for a non-Colorado net operating loss deduction. Other special rules may apply to particular taxpayers, and taxpayers should review section 172 of the Internal Revenue Code and section 2303 of the CARES Act for further information. Line 6 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. • 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. Page 6 • Alien labor—the amount of expenses for unauthorized alien labor services. We recommend that you read the Individual Income Tax Guide 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 7 Subtotal Enter the sum of lines 1 through 6. Line 8 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 on line 8 must exactly match the amount on the DR 0104AD. You must submit the DR 0104AD with your return. Line 9 Colorado Taxable Income Subtract line 8 from line 7. 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 10 Line 10 Colorado Tax The income tax rate is currently 4.55%. Full-year residents should refer to the tax table in this booklet. Determine the tax by the amount listed on line 9. Part-year residents and nonresidents should transfer the apportioned tax amount from the DR 0104PN line 36. You must submit the DR 0104PN along with the DR 0104. Line 11 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 the Individual Income Tax Guide if this applies to you. Line 12 Recapture of Prior Year Credits Enter any credit claimed in prior years that is subject to recapture under Colorado law. Line 13 Subtotal Sum of lines 10 through 12. Tax Credits Visit Tax.Colorado.gov/Income-Tax-Credits to read more about which tax credits can be claimed on this form. Line 14 Nonrefundable Credits Complete the DR 0104CR to claim various nonrefundable credits. Transfer the amount from the DR 0104CR line 43 to this line. The nonrefundable credits used from the DR 0104CR combined with the total Nonrefundable Enterprise Zone Credit used cannot exceed line 13. To ensure faster processing of your paper return, the amount entered on line 14 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 15 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 13. You must submit the DR 1366 and a copy of each certificate with your return. The Depar tment strongly recommends electronic filing for taxpayers with enterprise zone credits. Failure to file electronically may result in delays processing your return. Line 16 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 14 and 15 cannot exceed the amount on line 13. 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 17 Net Income Tax Sum of lines 14, 15, and 16. Subtract that sum from line 13. This cannot be a negative number. Line 18 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 Tax.Colorado.gov/Consumer-Use-Tax. If you are reporting use tax on this return, you must submit the DR 0104US with your return. Line 19 Net Colorado Tax Sum of lines 17 and 18. Line 20 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 24. Line 21 Prior-year Estimated Tax Carryforward Enter the amount, if any, from your 2019 Colorado DR 0104 line 34. Line 22 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 the Individual Income Tax Guide for more information about Estimated Payments. Line 23 Extension Payment Line 26 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 27 Refundable Credits Complete the DR 0104CR to claim various refundable credits. Transfer the amount from the DR 0104CR line 9 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 include with your paper return. Line 28 Subtotal Sum of lines 20 through 27. Line 29 Federal Adjusted Gross Income Refer to your 2020 federal income tax return to complete this line: • Form 1040 line 11 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 19 and 28. If line 19 is greater, skip to line 33. If line 28 is greater, continue to line 30. 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 30 Overpayment Line 24 Other Prepayments Line 31 Estimated Tax Carryforward 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 25 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. Page 7 Subtract line 19 from line 28. Enter the amount, if any, you would like to be available for 2021 estimated tax. Line 32 Refund Subtract line 31 from line 30. 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 Page 8 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. Line 37 Amount You Owe Enter the sum of lines 33 through 36. 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. You have three payment options: • 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 “2020 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. 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: Colorado Department of Revenue, Injured Spouse Desk, PO Box 17087, Denver, CO 80217-0087. 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 include your claim with this return. It will not be processed. Line 33 Net Tax Due Subtract line 28 from line 19. 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 37. Line 34 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. Line 35 Delinquent Payment Interest Calculate any interest owed for delinquent filing or payment. The interest rate is 3% 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 6%. Line 36 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 with your paper return. Third Party Designee Mark the “Yes” box to appoint the person entered on your return as the designee to receive and inspect confidential tax information related to this tax return. If a firm or organization is listed, this tax information authorization will apply to any of its employees. The designee may: • call the Department for information about the return, including processing time and refund status; • request copies of notices, bills or transcripts related to the return; and • respond to inquiries regarding calculations and supporting documentation for the return. However, a designee cannot sign any form or protest, request any other change to the account, receive any refund, or otherwise represent or act on behalf of the taxpayer with the Colorado Department of Revenue. This authorization expires four years after the date the return is signed. A taxpayer may change or revoke it, or an appointee may withdraw from it. For more information, see the instructions for form DR 0145, Tax Information Authorization or Power of Attorney. W-2s and 1099s When filing a paper return, all W-2s and/or 1099s that show Colorado income tax withholding must be included with the form. 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. Taxpayer Service and Assistance 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, Tax.Colorado.gov, for tax forms, guidance 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 Taxpayer Service Centers All visits for assistance and information are by appointment only and can be scheduled at our webpage at Tax.Colorado.gov/ Visit-a-Service-Center. Forms are available Monday through Friday, 8:00 am to 4:30 pm. For those who do not need assistance, each service center is equipped with a secure drop box for documents. Denver Metro—1881 Pierce Street, Entrance B, Lakewood, CO 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. Submit both the final paycheck stub and DR 0084 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 Page 9 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 the Individual Income Tax Guide 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. Page 10 Line-by-Line Instructions for the DR 0104AD - Subtractions from Income Schedule Line 4 Spouse Pension and Annuity Subtraction 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 1, Schedule 1, Form 1040 or 1040SR. 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 2 Line 5 If you use this schedule to claim any subtractions from your income, you must submit it with the DR 0104. 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 the Individual & Corporate Income Tax Guides 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, 2020, 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 include with your paper return. 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 31,2020. If you meet the age requirement, then you are entitled to subtract $7,500 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 Subtraction If the secondary taxpayer listed on a jointly filed return is 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 Subtraction 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. 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? (b) Did you deduct charitable contributions on the federal form? Yes Yes No No 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 include with your paper return. Do not send receipts of items that were purchased for donation. Line 10 Qualified Reservation Income Page 11 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 Line 12 Railroad Benefit Line 13 Wildfire Mitigation Measures 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 2020 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 include with your paper return. Do not list the amount of contributions you made as an employee this past year. 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. Enter the amount incurred in per forming 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 the pro forma schedule(s), the MED license number and the actual federal schedule(s) with your Colorado return when claiming this deduction. Submit using Revenue Online or submit with your paper return. Page 12 Line 15 Nonresident Disaster Relief Worker Subtraction For nonresident individuals, enter the amount of compensation earned for performing disaster-related work in the state during a declared state disaster emergency and for the 60 days thereafter. Disaster-related work includes repairing, renovating, installing, building, or rendering services that relate to infrastructure that has been damaged, impaired, or destroyed by a declared state disaster emergency or providing emergency medical, firefighting, law enforcement, hazardous material, search and rescue, or other emergency service related to a state declared disaster emergency. This subtraction is only available to nonresident individuals. If you are a full-year resident of Colorado, you are not eligible for this subtraction. Line 16 Reacquisition of Colorado Residency During Active Duty Military Service Subtraction This subtraction is only allowed to military servicepersons who meet several requirements. In order to qualify for the subtraction the serviceperson must (1) have Colorado as his or her home of record, (2) after enlisting in the military, have acquired legal residency in a state other than Colorado, and (3) on or after January 1, 2016, have reacquired Colorado residency. A military serviceperson who meets these three requirements can claim a subtraction for any compensation included in his or her federal taxable income that he or she received for active duty service after reacquiring Colorado residency. In order to have acquired residency in another state, you must have: 1. been physically present in that state, 2. intended to make that state your permanent home, and 3. intended to abandon your previous state of legal residence. In order to reacquire residency in Colorado, you need not be physically present in Colorado, but you must intend to both make Colorado your permanent home and to abandon your previous state of legal residence. In order to claim this subtraction, a taxpayer must include with his or her return: (1) a military form showing Colorado as his or her home of record, (2) evidence of acquiring residency in another state, and (3) evidence of reacquiring residency in Colorado during the tax year. Evidence of acquiring residency in another state and reacquiring residency in Colorado must come in one of the following forms: 1. voter registration; 2. records reflecting the purchase of residential property or an unimproved residential lot; 3. motor vehicle titling and registration; 4. notification to your prior state of legal residence of your intention to change your state of legal residence; 5. preparation of a new last will and testament reflecting your state of legal residence. If you qualify for this subtraction, enter the amount of compensation received for active duty military service on line 16 and submit all required evidence of residency with your return. Line 17 Agricultural Asset Lease Deduction Enter the certificate number (YY-###) for the deduction certificate that was provided by the Colorado Agricultural Development Authority (CADA). If you received more than one certificate you must file electronically. Enter the amount of the deduction on this line. The amount of deduction allowed to a qualified taxpayer may not exceed $25,000. You must submit a copy of each certificate with your return. Line 18 First-time Home Buyer Savings Account Interest Deduction You must complete the DR 0350 and submit with your return if you are claiming this deduction. You may only deduct the amount of taxable interest and/or earnings on the qualified account in the tax year claimed. This deduction is subject to recapture. Line 19 Other Subtractions from Federal Taxable Income Enter the sum of all other allowable subtractions. For more information about what to enter on this line, see the Income Tax – Subtractions page on Tax.Colorado.gov. Do not include amounts that were earned outside Colorado, net operating losses, K-1 adjustments, military income, wage adjustments, repayments for which IRC section 1341 credits were claimed, or donations made to the Military Family Relief Fund on this line. Include a clear explanation of the subtraction being claimed on your return. Line 20 Subtotal Enter the sum of lines 1 through 19. Instructions for form DR 0104US– Consumer Use Tax Reporting Schedule Was Colorado sales or use tax paid on your purchases from out-of-state vendors? YES: Some purchases will have sales or use tax included. Check your invoices and receipts to see if sales tax was paid. If sales tax was paid on your purchases, no consumer use tax is due. DO NOT FILL OUT THIS FORM. NO: Many online or out-of-state retailers do not collect sales or use tax from customers on purchases. Total the amount of your 2020 purchases where no tax was paid. State and special district (if applicable) consumer use tax must be paid on your purchases. Lines 1–2 State Consumer Use Tax Enter the total amount of 2020 purchases where no state sales tax or use tax was paid on line 1. Multiply line 1 by 0.029 (for the Colorado state sales tax rate of 2.9%). Round this number to the nearest whole dollar to calculate your Colorado consumer use tax liability. Enter this number on line 2. Lines 3–6 Special District Use Tax Use the table below to determine if you lived within a special district(s) in 2020. Report the total amount of 2020 purchases where no special district tax was paid on line 3. Then, enter the Special District Consumer Use (SDCU) code based on you lived in 2020 on line 4. If no special districts apply, enter 00 in the SDCU code field on line 4 and skip to line 6. Enter the special district use tax rate on line 5. Multiply line 3 by line 5. Round this number to the nearest whole dollar and enter your special district use tax liability on line 6. If no special districts apply, enter $0. Line 7 Enter the sum of lines 2 and 6. Transfer this amount to DR 0104 line 18. Submit this schedule with the DR 0104. Special District Rates and Boundaries Table Special District Name and Boundaries Use Tax SDCU Rate Code N/A 00 0.010 10 0.001 20 0.011 12 0.010 30 0.001 50 Roaring Fork Transportation Authority Within the city limits of Glenwood Springs or Carbondale. 0.010 61 Roaring Fork Transportation Authority Within the city limits of Basalt or New Castle. 0.008 62 0.006 63 0.004 64 No Special District Regional Transportation District (RTD) Only The Denver metropolitan area including all of Boulder, Denver, and Jefferson Counties, northern Douglas County, the western areas of Adams and Arapahoe Counties, most of Broomfield County, and small part of southwest Weld County. Scientific & Cultural Facilities District (CD) Only The Denver metropolitan area including all areas of Adams, Arapahoe, Boulder, Broomfield, Denver, and Jefferson Counties. All of Douglas county EXCEPT the city limits of Castle Rock and Larkspur. Regional Transportation District (RTD) and Scientific & Cultural Facilities District (CD) Overlap between the RTD and CD districts (see individual descriptions above.) Pikes Peak Rural Transportation Authority El Paso County EXCEPT within the municipal limits of Calhan, Fountain, Monument, Palmer Lake, or the Colorado Springs Commercial Aeronautical Zone. Note - Any areas annexed into these municipalities after 2004 are included in the PPRTA. South Platte Valley Regional Transportation Authority Within the city limits of Sterling. Roaring Fork Transportation Authority Areas of unincorporated Eagle County in the El Jebel area and outside the city limits of Carbondale. Roaring Fork Transportation Authority Aspen and Snowmass Village city limits, unincorporated Pitkin County. Reference publication DR 1002 at Tax.Colorado.gov, your county assessor’s office, or district maps for additional information to determine whether you live within the boundaries of the above special districts. Most residents of the Denver metropolitan area are within the district boundaries of both the Regional Transportation District (RTD) and the Scientific & Cultural Facilities District (CD). Page 13 Instructions for Select Credits from the DR 0104CR Line 1 Child Care Expenses Credit (DR 0347 and DR 0104CR Part I) Even when the federal tax is zero, Colorado offers taxpayers—with an Adjusted Gross Income of $25,000 or less—a Colorado income tax credit of 25 percent of their child care expenses up to $500 for one child, or up to $1,000 for two or more children. Use form DR 0347 to calculate this credit and submit it along with the form DR 0104CR. Lines 2 through 5 To Calculate the Colorado Earned Income Tax Credit (EITC) for SSN Filers on DR 0104CR: Line 2 Enter the amount of earned income calculated for your federal return. In order to calculate the value of your Federal earned income tax credit, you must determine the amount of earned income. You may use the Earned Income Credit Worksheet (EIC Worksheet) and the Earned Income Credit (EIC) Table in the instruction booklet for Federal Form 1040 or 1040SR or use the EITC Assistant Tool online: IRS.gov/Credits-&-Deductions/Individuals/Earned-Income-Tax-Credit/Use-the-EITC-Assistant. It is available in both English and Spanish. Line 3 The federal EITC you claimed Refer to the credit you entered on the Federal Form 1040. • Enter the amount of line 27 from Federal Form 1040 or 1040SR on the Colorado Form DR 0104CR line 3. Table Instructions: If you have a qualifying child and you claimed the EITC on the Federal 1040 or 1040SR, you will need to identify that child or those children in this table. Enter each qualifying child’s last name, first name, year of birth and Social Security number. Only check the “Deceased” box for a qualifying child if the child was born and died in 2020 and was not assigned an SSN, you must submit a copy of the child’s birth certificate, death certificate, or hospital records showing a live birth with your return. Line 4 COEITC Multiply the amount you entered on line 3 by 0.1 to calculate your Colorado EITC. Line 5 If you are filing as a part-year resident ONLY Multiply the amount you entered on line 4 by the percentage on the DR 0104PN line 34. (If the percentage exceeds 100%, use 100%.) Enter the result on line 5. This is the portion of the Colorado EITC you are allowed. Line 6 Business Personal Property Credit for Individual Business Owners The income tax credit for business personal property taxes is limited to $18,000 of the actual value of your personal property that you paid tax on during 2020. This is different than real property, which is not eligible for this credit. If your Page 14 actual value is less than $18,000, you can claim the total amount of the assessment you paid, and you must include the assessor’s statement(s) for which you are claiming the credit. To find your actual value, either look for it on your statement, or find your assessed value and divide it by 0.29. Actual Value = Assessed Value/0.29. If you own personal property whose actual value is above $18,000 for which you were assessed, you can only claim the assessment on the first $18,000 of the property in question. You will need to prorate your assessment with the following formula: 18,000 actual value * assessment = allowable credit For example, if your assessment was $2,000 for personal property tax paid in 2020, but your actual value was $25,000, you would be permitted to claim $1,440 (72% of the tax assessed or ($18,000/$25,000)*$2,000)). Please include a copy of your property tax statement for property tax paid in 2020. Line 8 Expanded Colorado Earned Income Tax Credit for ITIN Filers If you could not claim a federal earned income tax credit because you, your spouse, and/or your child or children have an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) that is not valid for employment, then you may be able to claim an expanded Colorado Earned Income Tax Credit (COEITC). To determine your eligibility, complete the eligibility checklist on form DR 0104TN. If you are eligible, complete form DR 0104TN to calculate the credit. Enter the amount of your COEITC on line 8 of form DR 0104CR. Review the ins
More about the Colorado Form 104 Individual Income Tax Tax Return TY 2020
Form 104 is the general, and simplest, income tax return for individual residents of Colorado. You may file by mail with paper forms or efile online (contains Forms DR 0104, DR 0104CH, DR 0900, DR 0104AD, DR 0158-I, DR 0104PN, DR 0104US, DR0104CR)
We last updated the Colorado Income Tax Return in February 2021, so this is the latest version of Form 104, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form 104 directly from TaxFormFinder. You can print other Colorado tax forms here.
Related Colorado Individual Income Tax Forms:
|Form Code||Form Name|
|Form 104EP||Estimated Tax - Individual Coupon|
|Form 104X||Amended Income Tax Return Form|
|Form 104PN||Part-Year/Nonresident Computation Form|
|Form 104CR||Tax Credits for Individuals|
|Form 104AMT||Alternative Minimum Tax Schedule|
Colorado usually releases forms for the current tax year between January and April. We last updated Colorado Form 104 from the Department of Revenue in February 2021.
Form 104 is a Colorado Individual Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Colorado Form 104
We have a total of nine past-year versions of Form 104 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Colorado Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.