topic How to enter military retirement for Colorado subtraction to income if I am over 65? in Retirement tax questions

How to enter military retirement for Colorado subtraction to income if I am over 65?

userlcobus — Mon, 23 Feb 2026 12:16:07 GMT

The 2022 program does not give options if a person is over 55. The Colorado FYI 25 and other information clearly states it may be subtracted up to $24K. The program does allow override on line 4 of 104AD and this does not result in an error.

Re: How to enter military retirement for Colorado subtraction to income if I am over 65?

ErnieS0 — Sat, 18 Feb 2023 14:35:22 GMT

The Colorado military retirement subtraction is for a retired servicemember who is under 55 years of age at the end of the tax year.

Retired service members age 55 or older will claim the regular pension and annuity subtraction.

Colorado says:

A retired servicemember may claim one of two subtractions for all or part of the military retirement benefits that are included in their federal taxable income. The subtraction that may be claimed depends on the retired servicemember's age at the end of the tax year. For more information on these subtractions, visit the Retired Servicemembers web page and review the guidance publication Income Tax Topics: Military Servicemembers.

You get one or the other, not both. TurboTax will give you the correct deduction based on your age.

Coloradoans a least 65 years old can subtract $24,000, those at least 55, but less than 65 years old can subtract $20,000.

Thank you for your honorable service to our nation.

Re: How to enter military retirement for Colorado subtraction to income if I am over 65?

userlcobus — Mon, 20 Feb 2023 04:53:08 GMT

Thanks Ernie. I had seen these on the CO site. What is unclear is whether any of my federal taxable SS income can also be subtracted. I could not find any thing that explicitly puts a cap on the total, and I do not currently have confidence in TT entry and calculation as it does not accept the over 65 military exclusion entry automatically.

Re: How to enter military retirement for Colorado subtraction to income if I am over 65?

ErnieS0 — Mon, 20 Feb 2023 14:27:02 GMT

The cap on taxable Social Security and pension income is $24,000. Taxable Social Security is deducted first. Any remaining amounts are deducted from your taxable military retirement.

We don't have contact with the developers, but I have run several test cases and TurboTax always moved military retirement to the correct place based on the age entered in personal info.