It is part of your retirement income and may qualify for exemption. income from sources such as Social Security or pensions may be mostly or entirely state-tax-free for many Colorado retirees.CO has a pension and annuity deduction maximum of $24,000 based on these factors:
- If you are 65 or older, then you can exclude up to $24,000.
- ages 55-64 up to $20,000.
- If you are younger than that, it must be income as a beneficiary, exclude up to $20,000.
- maximum to exclude, covers federally taxable IRA distributions, pensions, annuities and Social Security benefits.
See tax.colorado.gov › income-tax-subtractions
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