Colorado

[KJD22]

I am unable to advance on filing my mother's Colorado state return because of an error related to a Colorado Senior Housing Credit.  "Was your primary residence exempt from property tax? " She lives with me.  She does not pay property tax.  Neither answer applicable to her. Yet I am forced to provide an answer - neither of which is correct. And in so doing I may jeopardize my own state filing when I answer this question as a Colorado homeowner.  This crazy loop is just that... there must be a way to bypass this question when it does not apply. Help. Please. I am held hostage and cannot advance to complete her return.   Thanks in advance.

[Kat]

Deleted.  See answer provided by @hbl3973 .

[hbl3973]

KJD22,

Your mother is eligible for the Senior Housing Credit.  Indeed, even homeless senior citizens qualify.  The correct answer is No.

The phrasing of that question parrots what the Colorado 104 income tax booklet says and has confused others, too.  The credit is available to any senior citizen who doesn't have a property tax exemption available only to those who have owned and lived in their quarters for 10 years or more or have a disabled veterans property tax exemption.

If you are 65 or older and want to check on the credit for yourself and own your own place, look at your property tax bill for a deduction labeled Exemption or Homestead.

[Kat]

Thanks, @hbl3973 .  I actually did research this before answering, but obviously came up with the wrong answer!  I'll delete my response.

[hbl3973]

No prob.  I've been a Colorado VITA and AARP Tax-Aide this season volunteering 6 days a week so am steeped in the details that particular credit!  Of course we have to use TaxSlayer for those programs.  My wife calls herself a tax widow but rather likes it as I'm retired and not underfoot much of the day for a few months 🙂

[KJD22]

I greatly appreciate your willingness to help and your quick response.  I have to ask for more clarification.   Your response says, " The credit is available to any senior citizen who doesn't have a property tax exemption available only to those who have owned and lived in their quarters for 10 years or more or have a disabled veterans property tax exemption."  

Please clarify your response.   Something is missing in the response. 

It says the credit is available to any senior citizen and then goes on to say the credit is available to only those who have "owned and lived in their quarters for 10 years or more." 

Again, by way of background - my mother lives with me. She does not own a home.  She is not eligible for a property tax exemption since she doesn't own a home.  When I select "no" it results in a large state refund to her. Makes no sense.  I will answer the question appropriately when I file my state returns- but for now - I need to get her filing done.  

"Was your primary residence exempt from property tax? "  Greatly appreciate your help.  None of us want to get this wrong - knowing full well what the consequences might be.  

[hbl3973 · Accepted solution]

KJD22,

Your mother absolutely is eligible for the credit.  No ifs ands or buts!

The Homestead property tax exemption, i.e. one of the two reasons a senior citizen would not qualify for that credit, is only available to senior citizen homeowners who have lived in their home for 10 years or more and have applied for the exemption with their county tax assessor's office.  The application form with all the fine print is at  Homestead Exemption Application .

The other exception to not qualifying is having the Disabled Veteran Exemption (also mentioned in that above application though applied for differently.)  The disability must have been service related.

[KJD22]

Thank YOU, again, for answering my question (s) and giving me the information I need to feel confident in addressing this tax question accurately- no ifs ands or buts! 🙂 🙂 Love it.  I also checked the DR_0104_Book_2022.pdf, which I didn't know about and found confirmation of the same there as well. Thanks for mentioning that resource for future reference as well.  

[hbl3973]

You're very welcome.  Glad to have cleared up any confusion.