Colorado Wildfire Mitigation Tax Credit

Forum|Forum|1 year ago
January 28, 2025
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"A taxpayer who has a federal taxable income of $120,000 or less (adjusted for inflation) are allowed to claim a 25% credit on the costs expended up to $2,500 for wildfire mitigation measures.
Thus, the credit is limited to 25% of the maximum $2,500 amount spent not to exceed $625 ($2,500 x 25% = $625). "

I believe this calculation is not being done properly. My mitigation was 3400 and when I look at the before and after on how much my state refund is, it adds the full 3400 to it and not 25%. Additionally I realize after there is an income limit for this which I hit, so why is TurboTax not flagging that income and why is it not calculating it to be 25%?

DawnC

Employee

TurboTax does not calculate the credit; you have to calculate the amount of the credit and enter no more than $625. If you enter more than $625, you will get a warning and be prompted to change the amount. An amount over $625 will cause an error during the review.

The federal taxable income (Line 15 of Form 1040) limit for tax year 2024 is $126,300.

Form 104 (CO tax return) and the credit schedule, Form 104CR have not been finalized in TurboTax yet. Once the forms are both finalized (tentatively scheduled for Jan 31) , and your return can go through a Complete Check, the amount will get flagged if over $625 or your federal taxable income is too high. Forms Availability

The state of Colorado is not accepting e-filed returns at this time; they will not be ready to accept e-filed tax returns until Tuesday, February 11.

If you are using the desktop software, make sure your product is updated.