Does my pension from my federal government service received on 1099-R qualify for the Colorado State Income and annuity exclusion?

[DS30 · Accepted solution]

It depends on the type of pension income you are receiving (see screenshot).

According to the CO Department of Revenue, you might be eligible to subtract the income earned from a pension or annuity. Enter the qualifying amount if you:

• Earned income from a pension/annuity that was not a premature distribution; and
• It was included on your federal income tax return and is calculated as part of your federal taxable income; or
• It was a lump-sum distribution and, as of December 31, 2015 you:

1. Were age 65 or older, then you are entitled to subtract $24,000 or the total amount of your taxable pension/annuity income, whichever is smaller; or
2. Were at least 55 years, but not yet 65, then you are entitled to subtract $20,000 or the total amount of your taxable pension/annuity income, whichever is smaller; or
3. Were young than 55 years, and you received pension/annuity income as a secondary beneficiary (ex: widow, dependent child, etc.) due to the death of the person who earned the pension/annuity, then you are entitled to subtract $20,000 or the total amount of your secondary beneficiary taxable pension/annuity income, whichever is smaller. If this applies to you, please list the Social Security number of the deceased in the space provided. 

Note: Pension/annuity income should not be inter-mingled between spouses. Each spouse must meet the requirements for the subtraction separately and claim the subtraction only on their pension/annuity income.

[jableth]

But why doesn't Turbo Tax indicate the maximum amount allowed for this exclusion?

[jableth]

But why doesn't Turbo Tax indicate the maximum amount allowed for this exclusion?