@MarmotRidge
Read the letter from CO closely. You may need to call them to see what they want you to do to resolve the problem.
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You likely have to check lines 3-thru-6 of the Form DR 0104AD.
Lines 3&4 have a max value of 20,000 for those age 55 thru 64, and 24,000 for ages 65 and older....but cannot exceed what was included as taxable on the Federal form 1040 ... so it may be lower than those $$ amounts.
https://www.colorado.gov/pacific/sites/default/files/2020.02_Income25.pdf
AND...if a military retirement and age 54 or less, max is $4500 for 2019 and goes on lines 5 or 6 of the DR 0104AD, but goes up in subsequent years $7,500 for 2020.... $10,000 for 2021.... $15,000for 2022 for as long as the person is under age 55. page 4 of:
https://www.colorado.gov/pacific/sites/default/files/2019.12_Income21.pdf
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Possibilities:
1) If you e-filed your CO tax return for 2019, then they may be asking to see your forms SSA-1099, and 1099-R for yourself (and spouse if applicable) to show you had sufficient retirement income to justify the deductions on line 5 of the form DR 0104. Take a look at the DR 0104AD, lines 3 thru 6 to make sure you have the deductions in the proper lines, and have not double-counted those $$ values.
2) IF you mail-filed your CO tax return for 2019, then you were supposed to include the DR 0104AD with your DR 0104 package, along with paper copies of your SSA-1099 and any 1099-R forms that support the entries you made in lines 3-to-6 of the DR 0104AD. They may be asking for those forms now if you mail-filed your CO taxes, and forgot to include those retirement tax forms, or did not include the DR 0104AD form itself in your filing package).
3) in either of cases 1 or 2 above, CO might now be asking for a copy of your Federal form 1040 to se the values in lines 4b, 4d, and 5b of the Federal form 1040 support what you claimed in lines 3-thru-6 of your CO form DR 0104AD. i.e., the appropriate values of claimed in lines 3-thru-6 of your CO form DR 0104AD cannot exceed the "taxable" portion of your retirement income claimed in lines 4b, 4d, and 5b of the Federal form 1040.
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The problem for you here, is that the Federal form 1040 does not break down lines 4b, 4d, and 5b by spouse if you are married, while the CO tax form DR 0104AD does...so if you are married, you'll have to do your own per-spouse calculation to see if the values agree (separate and total). ((((AND...if you have a military pension and were under age 55 in 2019, the CO form lists the Military 1099-R forms amounts separately on lines 5&6 of the DR 0104AD subject to a 4500 max, if age 55 or older, then they are included with the lines 3&4 values of the DR 0104AD ))))
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Thus, check those values on the Federal form 1040, and the CO DR 0104AD to see if they are consistent. Then, a talk with a CO tax department rep on the phone might be an appropriate starting place , to see exactly what they want form you to support the line 5 value on your CO DR 0104 (actually lines 3-thru 6 of the 0104AD.
And check for any of the other things on your DR0104AD too (add up into line 20)....those other things add into line 5 of the DR 0104 and maybe they are disallowing the whole thing for some other line(s) on the DR 0104AD
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
