Colorado Income Tax Planning Update: Form 104

John Dundon

The following items might seem new and/or different for Colorado taxpayers on the CO 104 Income Tax form, some are some are not. These points below basically represent some of the more persistent questions coming across my desk as part of year end tax planning.

  • You must include the last 4 digits of your Colorado Driver’s License or State ID.
  • Charitable contributions in excess of $5,000 requires you to submit the acknowledgement letter from the organization receiving the donation along with an itemized list of donated item’s fair market value.
  • Colorado vehicle registration and ownership tax forms are new – taxes are now listed on back. ONLY THE SALES TAX IS DEDUCTIBLE.
  • Form 104CR – Line 25 – Lone Term Care Insurance Credit – one qualifying policy per individual with max credit per policy $150 – income limitation $50K for single or $100K for married/joint filers.
  • Record retention – CO Rev says 4 years after due date. If no tax return is filed keep records indefinitely as there is not statute of limitations on tax returns that have not been filed.
  • The fee to dissolve business with Colorado SOS is reduced from $25 to $10.
  • Colorado employees must receive their W2’s by 1/31 with copies to the Department of Revenue by 2/28 if in paper form and 3/31 if by electronical form.
  • Your Colorado tax filing status ALWAYS must match federal filing status.

An in depth review of Colorado Use Tax will follow in my next post.

Enrolled with the United States Treasury Department to practice before the IRS, governed by rules stipulated in United States Treasury Circular 230. As a Federally Authorized Tax Practitioner and a tax appeals specialist my Enrolled Agent License #85353 is issued by the United States Treasury. With this license I work for U.S. taxpayers everywhere to resolve tax matters and de-escalate stress about taxes or tax disputes for individuals and corporations with federal and state issues.

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