You don’t say what income entry is carried over to your Colorado return but, if it’s a negative amount, the entry on your Colorado return simply reflects an inconsistency in the instructions for your federal and state returns.
If you'll look at your federal Form 1040, the instruction next to line 15, the line for taxable income, is " If zero or less, enter -0-." So, even if the actual computation was negative, you'd need to enter a zero amount on line 15 of your federal return.
However, Colorado's DR 104 Book instruction for line 1 states that the amount should be entered as a negative:
If your federal taxable income is a negative amount, be sure to enter the amount as such on your Colorado return. If submitting a paper return, put the negative amount in parentheses, for example ($1,234).
Next, if you're referring to the Colorado innovative motor vehicle credit, then, to delete the credit in TurboTax Online:
- Open TurboTax Online
- Select Tax Home in the left pane
- On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select Start, Continue, or Pick up where you left off
- Proceed through the state screens until you come to the Your 2023 Colorado taxes are ready for us to check page. Select Edit to the right of Credits and taxes
- Select Review to the right of Innovative Motor Vehicle Credit
- Answer Yes on the Motor Vehicle Tax Credit Assigned to Financing Company? screen
This may not be factually true, but it will prevent you from receiving the credit. If you simply remove fields later in this portion of the state interview, the problem could persist. Don't worry - you won't be perjuring yourself -- this answer won't be part of your state return.
