US government interest

[RockiesCO]

For Colorado taxes: I have US government interest and interest that is taxable in Colorado but not by the federal govt. Neither shows up on my state form. I filled the amounts during the federal and state steps. Any ideas why it’s not giving me a form DR 0104AD?

[SteamTrain]

hard to know.....

For the US Govt interest,

1) anything shown in your 1099-INT forms, in box 3, and entered in the Federal section of the software, that should add into line 2 of the DR 0104AD.

2)  US govt interest reported in the Federal section on a 1099-DIV from Bond funds, is included in box 1a with other non-US dividends....but is broken out on a follow-up page.  The amount you indicated for those should also add into line 2 of the DR 0104AD.

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For non-CO tax exempt bonds, those are in box 8 of a 1099-INT for individual bonds you own, or box 11 of a 1099-DIV for mixed bond funds.  IF you properly indicated the non-CO amounts in the pages following those main forms in the Federal interview  (or just selected "Multiple States for all of it), then those total should ad into line 3 of the main form DR 0104.

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IF they don't, after entering all those in the Federal section, you might try a) deleting the CO state forms entirely, b)  run thru the Federal error check again to make sure it's still ok,  then c)  restarting and redoing the full  CO interview again from scratch.

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How to delete the state form for the "Online" software  (though you haven't indicate your software platform)

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-delete-my-state-return-in-turbotax-on...

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to Delete a state in the desktop software, you open your tax return, and then go up to the "File menu selection in the upper left corner, and select "Remove state return".

[zelbinion]

I am trying to prepare my 2021 return using Turbo Tax Premier 2021 Desktop, and I am running into similar problems as the original commenter. I think Intuit may have a few bugs in the Colorado state return.

When filling out my Federal return, I indicated that I have US Government interest and dividends, which were included in box 1a of my 1099-DIV. A supplemental form included with my 1099-DIV broke out the portion of the value in box 1a which was from US government sources.

This amount should show up on my 2021 Colorado in box 2 of the 104AD form, but it does not -- that box is blank. This appears to be bug #1.

State and Local bond interest is generally not taxable on the Federal return, but Colorado does tax State and Local bond interest from states OUTSIDE Colorado. On my 1099-DIV, I have a value in box 11 which shows tax exempt interest and dividends. This would ordinarily be taxable in Colorado, except that a small portion of that interest is from Colorado sources and there is NOT taxable. When filling out my return in Turbo Tax, I indicate a slightly smaller amount than what is shown on my Federal return. This modified State and Local interest and dividends should up on Colorado form 104, line 4 (note that for the 2020 tax year this was form 104 line 6, and on the 2019 return it was form 104 line 3) Anyway... What turbo tax does instead is it ignores the value I entered when filling out the state return, and instead uses the full amount from box 11 of my 1099-DIV, which is wrong. (That's bug #2)
Turbo tax then takes the full amount of the State and Local interest and dividends (box 11 of my 1099-DIV) and also enters this on Colorado form 104 line 30, which is used to calculate an additional refund according the Colorado TABOR legislation. Turbo Tax is probably just copying the State and Local Bond interest from form 104 line 4 to form 104 line 30, so I'm not sure this is strictly a bug. If the value on from 104 line 4 was actually correct, then the value on form 104 line 30 would also probably be correct, but as it sits, it is still wrong on the return Turbo Tax produces, so you could argue this is bug #3.
I've tried to delete my Colorado return, checked for errors on my Federal return, and then re-entered my Colorado state return from scratch, but it still does the same thing. As it sits, I can't use Turbo Tax to file my state return, as it does not (at the time of this post) produce a correct set of tax return documents for me.

[SteamTrain]

This isn't anything that most of us can check out here, without actually having the CO tax forms.

You should call TTX Customer Support and go thru the issue with them....they can get a copy of your tax file (without ID information)...check out the problem, and write up a ticket to get it fixed.

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What is the TurboTax phone number? (intuit.com)

[SteamTrain]

For your #2: when you break out the 1099-DIV box 11, make sure you do it (the CO $$ sub-amount) on the follow-up page after the 1099-DIV in the Federal section.  Example for a NC resident shown below:

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[zelbinion]

2 years later, finally found a way to fix this. See my post in this thread:

https://ttlc.intuit.com/community/taxes/discussion/2023-colorado-subtraction-for-u-s-government-inte....