bb123,
Sorry for the late response. I didn't see your post until today when I scrolled down through unanswered state tax queries.
The actual change in the Social Security and Annuity/Pension exclusion law is a bit more complicated.
(1) All Social Security is excluded from CO taxation.
(2) For taxpayers 65 and older, the amount of Annuity/Pension income excluded by CO is the minimum of the amount of that income and $24,000 - MIN(Social Security, $24,000). No longer can $24,000 of Annuity/Pension income be automatically excluded. Only the part not eaten up by the amount of Social Security.
(3) For the 55 to 64 age bracket, substitute $20,000 for $24,000 in (2).
I did experiment today with TurboTax on my desktop and it now handles the above correctly.
