Question

Colorado and Utah State Taxes

Forum|Forum|4 years ago
March 22, 2022
1 reply
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I live in Colorado and earned 95% of my income in Utah. My Colorado income was less than $1,800. I paid over $550 in taxes to Utah. Do I get credit for paying Utah taxes on my Colorado return? TurboTax says I owe over $450 to Colorado on income of less than $1,800. This does not seem correct. Help

ColeenD3

Yes, Colorado does offer a credit for taxes paid to another state.

In certain situations a taxpayer can earn income while residing in Colorado, but the income is taxable in another state. Residency and income tax rules could require the income be included on the Colorado income tax return. To prevent double taxation of the income, Colorado residents can claim a credit for the taxes paid to the other state. [§39-22-108, C.R.S.]

To claim this credit, taxpayers must complete and submit Form 104CR with their Colorado Individual Income Tax Return, Form 104. A copy of each tax return filed in the other state must accompany the Colorado forms. Submit supporting documentation when you file your return using the E-Filer Attachment function of Revenue Online, or attached to your paper return.

The credit is limited to the smaller of the Colorado tax calculated on the income from sources in the other state or the actual tax paid to the other state on such income.

Colorado