You may want to see if your employer can withhold Colorado tax going forward. Since you are a resident of Colorado, Colorado taxes your income regardless of where you earn it. Normally, you could claim a credit on your Colorado return for taxes paid on the same income to another state. Unfortunately, since Texas has no state tax, there is no credit to claim. So you will owe Colorado tax on that income, and you were likely under-withheld for the year, which means you will likely owe Colorado. If you can get the Texas employer to withhold Colorado tax, this will improve things for next year.
If the employer cannot (or will not) withhold Colorado tax, you will want to make estimated payments of Colorado tax. Otherwise, you may end up paying penalties for not paying in enough Colorado Tax throughout the year.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
