Is Social Security Income qualify for the Colorado pension and annuity exclusion

Forum|Forum|6 years ago
June 5, 2019
3 replies
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Both my wife and I are over 65, retired and both receive Social Security Benefits. Do those benefits qualify for the Colorado pension and annuity exclusion?

TurboTax Home & Biz Windows

Best answer by BarbL

Yes. Colorado taxpayers between the ages of 55 and 64 can exclude up to $20,000 of retirement earnings from taxes, which may include Social Security, pensions and other income. Colorado residents over the age of 64 can exclude up to $24,000. Turbo Tax will go through this exclusion when you complete your Colorado return.

BarbLAnswer

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JerryF1

I am filing a joint return with my wife. We are both over 55 and received social security payments in 2020. Is the $20,000 exclusion per person?

AnnetteB6

Yes, the exclusion is per person, but it is calculated separately for each individual. This means that each person can qualify up to the maximum amount, but for a joint return the maximum exclusion is not necessarily twice the maximum unless each person fully qualifies based on age and income.

The following document from the Colorado Department of Revenue contains more information: Pension and Annuity Subtraction

@JerryF1

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nanzpants

Turbo tax is not calculating the exclusion amount correctly for Colorado.

There is a pension worksheet that calculates the limit correctly, but the Form 104AD does not apply the limit to the taxable social security amount if it is over 20,000 and is subtracting the entire amount. My taxable social security is over 24,000. The form excluded the rest of my retirement income, but brought the entire SSA amount over to form 104 when it should have been limited to 20,000. It is understating my Colorado taxable income and the program will not let me correct it. I called support, and they agreed with me that it looks incorrect.