@AmyC , thanks for the input. I think I've figured out the differences. We had considerable income earned in our old state that we did not receive until 2022 and was reported on a W-2 for our old state. Therefore, what I'm seeing is
When Part-Year Resident
- The old state's income is not counted toward our CO income, lowering our tax liability (apportioned tax on Line 36 of CO form 104PN for Part-Year residents).
- Part-Year residents don't qualify for CO's TABOR credit, some kind of sales tax reimbursement, so we don't get this credit.
When Full-Year Resident
- Our tax liability is higher because it includes the income on our W-2 for our old state
- Full-Year residents get the TABOR credit
In each scenario, there is a one factor which would increase our refund and one which would decrease our refund. In our case, the Part-Year Resident approach advantages us. However, I'm considering going with Full-Year refund because 2 CO tax help agents have recommended it as well as 1 agent from H&R Block. My understanding is that this may also qualify is for TABOR or similar benefits during the 2023 tax year. I've also heard that you're not technically supposed to file as Part-Year if you've lived for fewer than 6 months in CO, but each time it's been accompanied by a "yeah but you still can and people have done it for years" qualifier.
