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
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.