Was am a bit unclear regarding my Colorado return this year. I work overseas but have a rental property in Colorado so I need to file a state return. When stateside we spend time in CO, but also in other states as well. When promoted, TT asked if I was a full resident of the year, I selected yes, as we were not residents of any other state. After starting on our return, TT indicated we are eligible to receive a $74 refund. My filing was the same as last year but last year I do not recall being eligible for a refund, so I am confused about this and wonder if I have made an error or something has changed in the Colorado tax code. Also, am I correct in filing as a full resident since I was not a resident of any other state during 2021?
Thanks
You'll need to sign in or create an account to connect with an expert.
Yes, you will file a CO full resident return if you plan to return to CO and have ties there. If you work abroad and are able to exclude you foreign earned income on the federal return then you are able to exclude this income on your CO state return.
"Living Out of the Country
A Colorado resident reporting U.S. federal taxable income must continue to file Colorado returns as a full-year resident no matter how long he or she is out of the country. Most such individuals are working on a temporary assignment, and plan on returning to Colorado. However, all foreign income that is exempt for federal purposes is also exempt for Colorado purposes.
Individuals who abandon their Colorado domicile and become permanent residents of a foreign country no longer have to file Colorado returns. However, they would have to file a Colorado tax return as a nonresident if they had Colorado-sourced income (e.g., rental income). Such individuals bear the burden of proving their abandonment of Colorado residency.
Continued Colorado residency will be presumed if the individual has not severed all Colorado connections, for example, if the individual still carries a Colorado driver license, votes in Colorado by absentee ballot, still owns a home in Colorado, and/or returns to Colorado." (Colorado Department of Revenue)
Thanks for clarifing filing a Colorado return based on my situation.
Cheers,
Alan
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Socksandmom
New Member
nordicskier99-
New Member
lscronin
New Member
bfexum
New Member
NMX
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.