For the 2025 tax filing, Colorado is not adding back the Federal deduction for non-taxable overtime pay. Colorado has recently passed legislation that will require adding back the Federal deduction of overtime on the 2026 return.
The following comes from the Colorado Individual Income Tax Guide: "Overtime compensation deduction addback
For tax years 2026 and later, an individual who claims a deduction for overtime compensation on their federal income tax return must add back the amount of the deduction on their Colorado return. The addback is required for the full amount of the federal deduction claimed on the taxpayer’s IRS Schedule 1-A (Form 1040).
No addback is required on the taxpayer’s Colorado return for any deduction claimed on their federal return for qualified tips."
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