Question

Double taxation. turbo tax is including my arizona income in my colorado state taxes? How do I fix this?

Forum|Forum|4 years ago
March 7, 2022
1 reply
0 views

My home state is CO but I earned part of my income in AZ. My CO tax form is including all of my income. Where in turbo tax can I change this?

TurboTax Deluxe Online

J

JohnW152

There’s nothing for you to fix.

Line 1 of your Colorado Form 104 starts you out by including your federal taxable income.

Later in your return, you receive a credit for taxes paid to another state using Form 104CR, which prevents the double-taxation.

Please see Colorado’s 104 Book for more information.

K

kgambon

Does TurboTax complete this 104CR form as part of the interview questions? My wife worked 100% in CO for a company based in NY. The company realized in August they needed to start deducing NYS taxes, so for a period of time she has been double taxed. 12 Months of CO state taxes and 5 months of NYS taxes.

I think what needs to occur is (please correct me if I'm wrong):

* Need to "true up" the NYS taxes for the full year (7 months).

* Submit a Colorado form 104CR with my CO state taxes (and NY state form as evidence) to show I paid taxes to NY state.

* State of CO issues a refund for the amount of tax paid to NY (but not to exceed what CO taxes would have been) I get it - my tax bill will be higher because NY rate is higher. Thanks NY!

E

ErnieS0

TurboTax does prepare CO 104CR as part of the interview process.

In Colorado, you'll see an Other State Tax Credit Summary. New York should be there if you prepare your NY nonresident return first.

You are correct, You should "true up" your Colorado return. Not having tax withheld does not excuse you from a tax liability.

New York is aggressive about auditing out-of-state employees whose reporting office is in New York and who don't have a "bona fide" office elsewhere,.

TurboTax will submit all necessary forms with your Colorado e-file or include directions if you file by mail. To claim a credit on double taxed income you generally will need to provide your home state with a copy of your other state return showing income and tax reported to that state.

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