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IRA distributions that you received as a resident of Texas are not taxable by Colorado.
IRA distributions that you received as a resident of Texas are not taxable by Colorado.
Thank you. But TurboTax is not deducting the IRA withdrawal that was made while in Texas. It is passing the entire IRA withdrawal to the Colorado state income tax forms where there doesn't appear to be a way to take it out. It's making a several-thousand dollar difference in my Colorado tax liability that I believe is wrong.
If you are filing a part-year resident return for Colorado (or any part-year resident return), there should be a chance to allocate income that is reported on your Federal return to that particular state.
After several initial screens in the Colorado part-year return, you will start to see a new screen for each category of income items reported on your Federal return where you can see the amount that was reported on the Federal return and then enter the amount that corresponds to Colorado. When you get to the screen asking about taxable IRA, pension, and Social Security benefits, be sure to only enter any benefits you received while a resident of Colorado. Do not include the IRA withdrawal that was made when you lived in Texas.
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