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Treatment of Pension Income on state return

I'm 59, retired, not disabled and started receiving about 12K a year from the PBGC.

Is the full amount taxable on my CO state tax return or is any portion excluded?

Best answer by AmyC

Yes, the entire $12,000 is an exclusion for you. It is less than $20,000 which is the limit for your age.

It's not a yes or no answer. There's other factors when calculating the amount not taxable. The best way to find out is to enter it in TurboTax.

Retirees can deduct between $20,000 and $24,000 in retirement income from state taxes in Colorado, depending on their age. Taking that deduction into account, income from sources such as Social Security or pensions may be mostly or entirely state-tax-free for many Colorado retirees.

Here's how to enter your 1099-R in TurboTax:

Open (continue) return if you don't already have it open.
Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
Answer Yes on the Your 1099-R screen, then select Continue.
- If you land on the Your 1099-R Entries screen instead, select Add Another 1099-R.
Select how you want to enter your 1099-R (import or type it in yourself) and then follow the instructions. You can add up to 20 1099-Rs.