Colorado Additions to Federal Adjusted Gross Income

[DianeMarie1]

My daughter moved to CO in June, 2023.  In 2023 a profit sharing plan from a former employer closed and she received a 1099-R 'distribution' that the plan rolled over to a new IRA for her.  She was NOT taxed on this on her 1040.  Does she need to declare this as a 'CO addition to Federal AGI?  

Advice from Turbo Tax : (which wasn't clear enough to me)

"Part-Year Residents: Enter any non-Colorado state or local bond interest you earned while a Colorado resident, and any lump-sum distributions from a pension or profit-sharing plan you received while a Colorado resident. Do not include any state income tax deduction addback."

Leave out or add in on CO return?

Thank you for your help.

Diane

[Opus 17]

It's a rollover, not received income.  The 1099-R needs to be reported on the federal return but it is not taxable if you indicate it was a rollover.  It's not a Colorado addition.   (If she had kept the money, so that it was a taxable withdrawal, then whether it was Colorado income would depend on where she was living when she got the money.  But this is not income because it is a rollover and not a withdrawal.)

[DianeMarie1]

Thank you, Opus 17!  I was hoping that was the case, but the explanation in the Colorado instruction book left it too much to additional interpretation for me.  

Diane