Colorado form DR 0204: 2 bugs in Part 3

[lambell]

There are TWO bugs on Colorado form DR 0204 for tax year 2025:

1) In Part 3 line 9, the TABOR refund (from Form 104 line 38) is allocated across the four payment periods. This is incorrect. Line 9 is "Amount of income tax withheld from wages and/or nonresident real estate transaction". TABOR is neither; it is a refund of SALES tax. It should therefore not be reflected on line 9. TT handled this correctly last year.

2) In Part 3 lines 10, 11, and 12 are all blank. This is incorrect. They should all be calculated based on previous inputs but instead are blank. TT did these calculations last year.

When will these bugs be fixed?

[DavidD66]

I am unable to recreate issue you are describing/showing.   Does your Colorado return show an underpayment penalty?  If so I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[lambell]

Thanks for looking into this. The token # is 13563578020347149-08291914.

My Colorado return does NOT show a penalty, which is correct. Using the annualization method on Form 204, the penalty is eliminated.

A poster last year said their Colorado 204 was rejected by the state because of the blank lines. (Which is odd, because last year these lines weren't blank for me. Maybe it was fixed last year and is now broken again?)

FYI, I noticed that not only is the TABOR refund allocated across line 9, it's also included on line 2b of the "Exception 2" section. It's not withholding, so I really don't think it belongs on either line.

[DavidD66]

On the Tabor Refund issue, I think you are getting caught up in the semantics.  You are correct that a refund of sales tax is not the same thing as income tax withheld from wages...however, it acts the same way in determining tax due.  Your $74 Tabor refund has the exact same effect on your tax due/refund as $74 withheld from wages.  Based on the methodology used to calculate required estimated tax payments, the Tabor refund should be included in the calculation.   It's just not explicitly stated on the tax form.  I would say that instead of an error, there is an omission, and it is in the wording of the CO tax form.  

Lines 10, 11, and 12 are blank because there is not underpayment penalty.  If you were to add a significant amount of income with no corresponding CO tax withholding to your return, and you had a underpayment penalty, then you would see lines 10,11, &12 populated.  

The program is working exactly the way it should in regards to CO 0204.  

[lambell]

What about this post from last year where the OP said that Colorado rejected form 204 generated by TT because lines 10-18 were blank?  

https://ttlc.intuit.com/community/state-taxes/discussion/turbotax-2024-filled-out-colorado-form-dr-0...

[MarilynG1]

If you have no underpayment penalty, Colorado Form DR-0204 most likely won't be included in your state return.  You can verify this by viewing the PDF of your return with the 'all official forms required for filing' option.

@lambell 

[lambell]

The only reason I don't have an underpayment penalty is BECAUSE I am filing DR 0204.  I use the annualization method in Part 4 to calc the installment payment due each period.  Then Part 3 for the penalty calculation is supposed to show that I actually overpaid instead of underpaid and therefore have no penalty.  But since lines 10-12 are blank, that calculation is not done.   If I don't include DR 0204 then I will be assessed a penalty.

"All official forms required for filing" does include DR 0204.

[DawnC]

Have you tried to e-file your return, @lambell?