Colorado Tax Filing
How to File Your Colorado Taxes
Important fact: In Colorado, all residents pay the same flat rate on their income: 4.63 percent. In some special cases (depending on budget targets), the rate may be lowered to 4.5 percent.
You can file your taxes electronically in Colorado, in two different ways: by using an online system called NetFile or by using a touch-tone telephone system called TeleFile. These systems are accessible on a non-stop basis, and most of Colorado’s taxpayers are eligible to use them.
Online Tax Software: Compare Them Here
If want to prepare and file your taxes the easy way, consider using online tax software. TaxAct and e-File.com are the most well-known software providers out there for doing your taxes online, but they each have their pros and cons. You can check here to see what each offers and what their prices are.
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Colorado Tax Forms
- Colorado Form 104X - Amended Colorado Individual Income Tax Return
- Colorado Tax Booklet - Colorado Income Tax Booklet
- Colorado Form 106 - Colorado Income Tax Return for Pass-Through Entities and Composite Filing for Nonresidents *use 106 form to amend a return
- Colorado Form 105 - Colorado Payment Voucher for Automatic Colorado Extension for Estates or Trusts *use 105 form to amend a return
- Colorado Form DR 0211 - Colorado Income Tax Order Form
- Colorado Form 112 - Colorado C-Corporation Income Tax - Electronic Filing Guide
- Colorado Form DR 0084 - Colorado Substitute W-2 Form for Income Tax Withheld
- Colorado Form DR 0253 - Colorado Income Tax Closing Agreement
- Colorado Form 104CR - Colorado Individual Credits Schedule
- Colorado Form 104 - Colorado Individual Income Tax Return
- Colorado Form 104PN - Colorado Part-year/Non-resident Tax Calculation Schedule
- Colorado Form 104AMT - Colorado Alternative Minimum Tax Computation Schedule
- Colorado Form 158-I - Colorado Extension Payment Voucher for Colorado Individual Income Tax
Determine Your Residency Status
The amount of your taxes depends on your residency status, so check below to see which category you fall in.
You Are a Resident of Colorado
Colorado has a special way of defining residents. If you had your domicile home or lived in Colorado for at least 183 days of the tax year, you are a resident. In this case, you have to file an income tax return by using Form-104. You can download the 2016 Colorado Income Tax Guide above for more information on how to file Form-104.
The tax filing system in Colorado is based on the federal one, so there are no other credits or exceptions than those already stated on your federal return. When filling in Form-104, you will need to perform some calculations based on your federal taxable income; the result will be taxed by Colorado at a flat rate of 4.63%.
You Are a Part-Year Resident in Colorado
If you moved to or left Colorado during the tax year, you are considered a part-year resident. In this case, if you filed a federal tax-return, you may have to file a tax return with the state of Colorado as well. For special cases, see sections “You Are a Colorado Resident”, “You Are a Colorado Resident Who Works in a Different State”, “You Are a Nonresident Who Works in Colorado” or “You are a nonresident who sold property in Colorado” to determine which forms you need to file.
You Are a Colorado Resident Who Works in a Different State
If you are a resident working in a different state, you have to keep in mind a few things in order to avoid dual taxation. First, you need to file your federal tax return the same way as if you were a resident living and working in Colorado. Second, file your tax return with the state where you are working. Third, file your Colorado tax return. To do that, fill in Colorado Form 104 (lines 1-18 only). Then, fill Colorado Form 104CR (lines 20, 21 and 24 only).
You are a nonresident who works in Colorado
If you didn’t have your domicile home in Colorado for any part of the tax year, even if you may temporarily reside or work here, you are considered a nonresident of Colorado. When are you required to file a Colorado nonresident return? If you filed a federal income return which included income obtained from a source in Colorado (including property sales), or you have a Colorado tax liability. You should keep in mind that there is no minimum taxable income limit. To file your nonresident Colorado return, you have to use Form-104PN.