Colorado Pension and Annuity Subtraction change for 2022.

bb123 — Mon, 23 Feb 2026 09:52:31 GMT

Hi Colorado House Bill 21-1311 changed Pension and Annuity Subtraction change for 2022.

Beginning in 2022, all federally taxed Social Security income is deductible for taxpayers 65 and over (amounts exceeding $24,000 were previously taxable).

It seems Turbo Tax for Colorado still uses the old Pension and Annuity Subtraction 55..64 age $20000 and 65... age $24000 deductions.

Any suggestions?

Thank you

Re: Colorado Pension and Annuity Subtraction change for 2022.

hbl3973 — Wed, 15 Feb 2023 21:02:27 GMT

bb123,

Sorry for the late response. I didn't see your post until today when I scrolled down through unanswered state tax queries.

The actual change in the Social Security and Annuity/Pension exclusion law is a bit more complicated.

(1) All Social Security is excluded from CO taxation.

(2) For taxpayers 65 and older, the amount of Annuity/Pension income excluded by CO is the minimum of the amount of that income and $24,000 - MIN(Social Security, $24,000). No longer can $24,000 of Annuity/Pension income be automatically excluded. Only the part not eaten up by the amount of Social Security.

(3) For the 55 to 64 age bracket, substitute $20,000 for $24,000 in (2).

I did experiment today with TurboTax on my desktop and it now handles the above correctly.

topic Colorado Pension and Annuity Subtraction change for 2022. in State tax filing

Colorado Pension and Annuity Subtraction change for 2022.

Re: Colorado Pension and Annuity Subtraction change for 2022.