How is IRA distribution treated for state income tax purposes? Is it a subtraction from 1040A taxable income in the sate of Colorado?

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

Thank you for your response. I agree with your response, but turbo tax software is not subtracting the allowed $24,000 in calculating Colorado State Income Tax. What do I need to do to fix this issue.

Have you tried clearing your cache and refreshing? This may help. Help with doing so has been provided by clicking here.