Colorado Senior Housing Credit

[Radioshoppe99]

TT instructions for Senior Housing Credit are misleading.  The instructions mentions that if a filer has "Homestead Exemption" they should not file for Senior Housing Credit.  TT instructions should also say "Disabled Veteran Exemption" as well.  I do not have Homestead Exemption but I do have Disabled Veteran Exemption.  I have since learned that both are handled the same in Colorado.  Because the TT instructions do not mention the Disabled Veteran Exemption I indicated I was eligible for the Senior Housing Credit.  Colorado Dept of Revenue sent me a letter saying I am not eligible for the Senior Housing Credit as I have the Homestead Exemption (i.e. Disabled Veteran Exemption).  They are reducing my refund by $400 and asking me to prove I do not have the Homestead Exemption.  And according to their website are holding my return in limbo.  Turbo Tax you made the mistake.  How do I proceed???

[hbl3973]

RadioShoppe99,

While it is no fun getting a letter from the CO Dept. of Revenue, TurboTax asks

"Was your primary residence exempt from property tax as allowed under section 39-3-203 of the Colorado Revised Statutes (commonly known as the Senior Property Tax Exemption or Senior Homestead Exemption?"  

The Colorado 104 Income Tax Booklet asks

"Was your primary residence exempt from property tax as allowed under section 39-3-203 of the Colorado
Revised Statutes (commonly known as the Senior Property Tax Exemption or Senior Homestead
Exemption) for the property tax year beginning January 1, 2022?"

so TurboTax is asking exactly what Colorado asks for the DR 104CR form.

While I will ask the TurboTax folks to include explicit mention of the disabled veterans in the additional help (which also parrots the 104 instructions), you are not being penalized by Colorado for the corrective adjustment to your refund.

[radioshoppe]

Thank you for your response.  At least it looks like TT is exonerated.  I have queried Colorado Dept of Revenue as to what seems to be incomplete instructions in their tax booklet.  They are saying it will take several weeks weeks to get a reply.  So I guess my return is in limbo awaiting their decision.