Federal Source Income and Colorado 2025 Tax return

[user17722139154]

Some of my mutual funds are reporting Income in 2025 from Federal Obligations.  After importing the information from my brokerages consolidated 1099 forms, I carefully calculated and then entered these amounts for each fund.  However, the total amount is not showing up in my Colorado Tax return on form 104AD line 2 as it has in previous years.  And, it is apparently not being subtracted from my Colorado Income.  Is there some explanation for this?  If this is a Turbo Tax issue as I suspect-- is there a work around?

[AmyC · Accepted solution]

Let's double check what you entered where:

• When you enter the form in federal, you enter the state and exempt amounts. This does carry to your CO return.
• On the CO return, it asks:
  • how much of the government interest is not subject to CO tax and indicates the portion already marked in federal. 
    • Do not enter the federal portion again.
    • Enter anything else that qualifies.
  • The next screen asks about taxable to CO but not federal. Add back GNMA, agency bonds, etc.
• The program then creates the interest worksheet for CO.
  • Line 1 takes the federal amount that carried over
  • Line 2 subtracts out the GNMA, agency bonds etc
  • Line 3 adds any other exempt interest
  • The result could be zero or a deduction and is carried to 1040AD line 2.

Please take a look at your Interest Wks and double check your answers and numbers.

 To print or view  your forms, including all worksheets:

• In desktop, switch to Forms Mode. 
• For online:
  1. On the left side, select  Tax Tools
  2. Select Print center
  3. Select Print, save or preview this year's return
  4. If you have not paid, select pay now.

[user17722139154]

Thank you Turbo Tax Person,

Since I posted this question I have spent many happy hours reviewing my entries as they appear in the Forms View.  Indeed I did find the Interest Worksheet (finally) and discovered an errant entry there.  I eventually traced that errant entry back to the spot in the Step by Step view where I made it, and deleted it.  I am pleased to report this solved my problem.  Elapsed time = 6 hours.  You will be pleased to know that I have made detailed notes to myself so that I don't repeat this problem next year.

Thank you for your patience and your helpful answer to my posting.

Dave.