Do we need to file a Colorado income tax because although we were residents of Texas the company my wife works for took out some money in January for Colorado income tax?

rtirdsldr — Sat, 01 Jun 2019 05:02:10 GMT

We moved to Texas in 2015 and lived in an apartment until January 15 of 2016 when we moved into our home. The company that my wife works for did not update her records and took money out of her January 2016 pay check and paid Colorado income tax. Texas does not have income tax so we do not have to file in Texas.

If you want a refund of the January 2016 W-2 income taxes...

GeoffreyG — Sat, 01 Jun 2019 05:02:12 GMT

If you want a refund of the January 2016 W-2 income taxes withheld (in error) for Colorado, then you will want to file a Colorado nonresident state return and make a claim for a refund. As it sounds like you were Texas residents all year in 2016 (living in an apartment or a house doesn't make a difference here with respect to state residency), neither of you have Colorado-source income for 2016.

Thus, you have one of two choices as to how to handle this.

One, you can file a Colorado nonresident state return, report no state of Colorado income on it, but input the amount of the state taxes withheld by the employer. If you file such a return, you should get a refund of all the Colorado state tax withholding shown in W-2 Box 17.

Two, you can chose not to file a Colorado nonresident return (i.e, you really don't have to if you don't want to), and the Colorado state treasury will receive it as unclaimed property, after the 3-year statute of limitations on requesting tax refunds runs its course.

Those are your Colorado options; and you are absolutely correct in that Texas has no personal income tax system, so there is nothing for you to file there.

If you have further questions, encounter any difficulties, or just want to speak with a live tax expert who can walk you through your TurboTax entries (including the ability to screen-share with your computer), please feel free to contact us. We would be happy to help you (and as a paying customer, the call is free to you). Here is a link where you can create a support ticket and reach us:

https://support.turbotax.intuit.com/contact/

Thank you for asking this question.

topic Do we need to file a Colorado income tax because although we were residents of Texas the company my wife works for took out some money in January for Colorado income tax? in State tax filing

Do we need to file a Colorado income tax because although we were residents of Texas the company my wife works for took out some money in January for Colorado income tax?

If you want a refund of the January 2016 W-2 income taxes...