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January 14, 2025
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Colorado State and Local Taxes for Nonresidents

  • January 14, 2025
  • 1 reply
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I've resided in Florida for the entirety of the past year. My Colorado-based company is withholding Colorado income tax from my earnings. I fly to Denver for meetings 2 – 3 days each month. Do I have to file a nonresident tax form to pay the Colorado earnings for my time there, and will Colorado refund the balance of the withholding? What about local income tax (occupational privilege tax), because my company is headquartered in Denver?

Best answer by TomD8

"Do I have to file a nonresident tax form to pay the Colorado earnings for my time there, and will Colorado refund the balance of the withholding?"

 

Yes to both questions.  Colorado can tax you as a non-resident on income you earn from work physically carried out within Colorado.  Colorado will refund any excess Colorado income tax withheld from your pay.

 

Here's a link to the detailed info about Denver's Occupational Privilege Tax:

https://www.denvergov.org/content/dam/denvergov/Portals/571/documents/TaxGuide/TaxGuideTopic61_OccupationalPrivilegeTaxes.pdf

 

1 reply

TomD8Answer
Employee
January 15, 2025

"Do I have to file a nonresident tax form to pay the Colorado earnings for my time there, and will Colorado refund the balance of the withholding?"

 

Yes to both questions.  Colorado can tax you as a non-resident on income you earn from work physically carried out within Colorado.  Colorado will refund any excess Colorado income tax withheld from your pay.

 

Here's a link to the detailed info about Denver's Occupational Privilege Tax:

https://www.denvergov.org/content/dam/denvergov/Portals/571/documents/TaxGuide/TaxGuideTopic61_OccupationalPrivilegeTaxes.pdf

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.