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Colorado Additions to Federal Adjusted Gross Income
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
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Colorado Additions to Federal Adjusted Gross Income
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.)
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Colorado Additions to Federal Adjusted Gross Income
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
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