topic 2023 Colorado State Tax Return in State tax filing

2023 Colorado State Tax Return

mkrooks — Tue, 20 Feb 2024 04:10:26 GMT

I've completed my Federal and State tax forms within Turbo Tax and upon reviewing the printed tax returns, I noticed that Turbo Tax failed to include my Tabor Tax Refund (Line 34 of DR0104_2023) which equates to a $1600 error in my case. My wife and I are filing jointly and have a 2023 Colorado Tax liability of $4434. We are full time residents of Colorado and qualify for the Tabor refund according to my understanding.

Re: 2023 Colorado State Tax Return

JohnW152 — Tue, 20 Feb 2024 14:44:14 GMT

To establish your eligibility for the Colorado sales tax refund (TABOR) in TurboTax Online:

Open TurboTax Online
Select Tax Home in the left pane
On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select Start, Continue, Review/Edit, or Pick up where you left off
Proceed through the state screens. (If you come to the Your 2023 Colorado taxes are ready for us to check screen, select Edit to the right of Credits and taxes)
Select Done with credits and taxes on the Take a look at Colorado credits and taxes page, and continue the state interview
On the Qualifying for the Colorado state sales tax refund page, select No. (You can't have been incarcerated in Colorado for 180 days or more during the tax year and receive the refund.)
If appropriate, select No on the Qualifying for the Colorado sales tax refund screen. CAUTION: If you select Yes on this screen, you'll be disqualified for the credit.
If you qualify, the You're getting the Colorado sales tax refund! screen should generate. Select Continue
Continue through the state questions

Note: If you don't come to the screen in step 5 above while reviewing your return, select Start or Revisit next to Sales Tax Refund when you come to the A few things before we wrap up your state taxes screen.

See 2023 TABOR Refund in the Colorado Department of Revenue's Taxpayer's Bill of Rights (TABOR) Information to view the sales tax refund requirements.

Re: 2023 Colorado State Tax Return

mkrooks — Tue, 20 Feb 2024 19:28:30 GMT

Turbo Tax shows the following:
Ineligible for the Colorado State sales tax refund

To qualify for the state sales tax refund you must have a Colorado tax liability or you're claiming a refund of Colorado tax withheld.

In my case, My Colorado Tax liability is $4434 for 2023. My estimated tax payments equaled $5662 so I'm currently reflecting a $1228 Colorado refund. So my question, is the fact that I over estimated my tax liability and paid too much for estimated taxes, is this keeping me from showing a tax liability per Turbotax??

Re: 2023 Colorado State Tax Return

JohnW152 — Tue, 27 Feb 2024 16:08:12 GMT

No, the fact that you entered estimated taxes has nothing to do with this. TurboTax appears to be applying the qualification requirements for a taxpayer who was under age 18 as of January 1, 2023.

According to Line 34, State Sales Tax Refund in the Form DR 0104 Booklet:

If you are a full-year Colorado resident who was under 18 as of January 1, 2023, you may claim the state sales tax refund only if you have a Colorado tax liability (line 14 must be greater than 0) or you are claiming a refund of Colorado wage withholding on a W-2. Your return must be postmarked by October 15, 2024.

[Bolding mine.]

In other words, if you were under 18, you can't get the credit unless you had a state tax liability (making estimated tax payments wouldn't affect this), or you're claiming a state refund based on Form W-2 Colorado withholding.

See the Colorado Department of Revenue's Taxpayer's Bill of Rights (TABOR) Information for more information.