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April 12, 2024
Question

Colorado Portion of Federal Adjustments

  • April 12, 2024
  • 0 replies
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What is the Colorado Portion of Federal Adjustments? I am a resident of California but 95% of my income is earned in Colorado. Therefore, I took this portion of my Federal Rental or Royalty Income to be Colorado. However, when I do the same for the Portion of Federal Adjustments (Deductible part of self-employment tax and SEP qualified plans), my California Tax Due goes up and my Colorado Tax Due goes down (as opposed to when the Colorado Portion of Federal Adjustment is 0) which intuitively doesn't make sense.