Hi @BillM223,
I've discovered an issue with TurboTax's handling of the Colorado state returns that may be related to the issue AJS reported, so you may want to pass it along with AJS' example. In my situation, I am preparing a return for my teenage child, as follows:
- Age < 18
- Positive Federal AGI (1040 line 11) in the single-digit thousands of $
- $0 Federal taxable income (1040 line 15). It would have been a negative number ($X) because AGI is < the standard deduction, but the instruction for line 15 says (and TT correctly calculates on the federal side) "If zero or less, enter -0-."
- There is state wage withholding on a W-2 for which the child will be claiming a refund, so, as quoted above, the sales tax refund will apply. See DR104 Book, page 14, instructions for line 35.
The issue I have found is with line 1 of the Colorado return, which is supposed to insert "Federal Taxable Income from your federal income tax form: 1040, 1040 SR, or 1040 SP line 15".
Instead of inserting $0 from 1040 line 15, it inserts the negative number ($X)--the amount by which the standard deduction was more than AGI.
This does not appear to affect the calculations--it still correctly shows the refund of all the state withholding, and still correctly shows the $177 TABOR State Sales Tax Refund. But I still don't want to file the return attesting to a number incorrectly transferred from the federal return.
Thanks!
