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February 11, 2024
Question

Colorado Online Income copied forward is incorrect

  • February 11, 2024
  • 1 reply
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I am doing a Colorado tax return where the Fedeal Taxable income is zero.  Turbo tax is copying forward a number of -3609 in Line 1 of Form DR104.  This is not correct.  How do I override it?

1 reply

February 12, 2024

Don't try to override it.  There's nothing wrong.  The entry on your Colorado return simply reflects an inconsistency in the instructions for your federal and state returns.

 

If you'll look at your federal Form 1040, the instruction next to line 15, the line for taxable income, is " If zero or less, enter -0-."  So, even if the actual computation was negative, you'd need to enter a zero amount on line 15 of your federal return.

 

However, Colorado's DR 104 Book instruction for line 1 states that the amount should be entered as a negative: 

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).