Can deduct moving expenses for Colorado taxes?

[Mike8]

I moved to Colorado in 2018 (from PA).

I am aware that beginning in 2018, moving expenses are deductible only by military members at the Federal level so I cannot deduct them on my Federal return.

However, I could not find if this applies to CO taxes as well. Anybody knows?

Can I deduct my moving expenses on CO taxes?

Thanks

[JohnW15]

Colorado allows a moving expense deduction if you file Form 104PN Part-Year Resident/Nonresident Tax Calculation Schedule 2018, and the moving expenses were for moving into Colorado, and not out of Colorado.  

See Colorado Income Tax Booklet 104 for more information.

These expenses would be entered on line 23 of Form 104PN.  See FYI Income 6 to determine if you need to file Form 104PN.

[Mike8]

Yes, that's what I also found. So the new requirement of being a military member only applies to the Federal taxes as it's not mentioned for CO correct? I cannot find details about what is allowed as moving expenses for CO return, though, is there such information anywhere? Hotels? Gas mileage? What rate mileage to use? Rental trucks?

[JohnW15]

Right -- the federal deduction is now only allowable for military members, nothing similar seems to apply for Colorado.  I'll be honest, I haven't been able to find any info on the Colorado state site either about what's allowable... I suspect the parameters would be similar to what's described in the last version of the Instructions for Form 2016 (federal) at <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-prior/i2106--2017.pdf">https://www.irs.gov/pub/irs-prior/i2106--2017.pdf...>. but I surely couldn't guarantee it.  This is as far as my research has taken me, sorry I can't give you anything more definitive.

[Mike8]

Ok, thank you, I'll just use the federal instructions about what's generally allowed for moving expenses.

[jillnmax]

Hi, Turbo Tax does not allow me to enter moving expenses on my federal return, so they do not carry over to Colorado return 104PN line 22 like they should.  Any suggestions (since i would like to file electronically)?

[Mike8]

I did not end up claiming the moving expenses on my state return after further counseling. For Colorado, it is allowed to apportion the amount of moving expenses for a move into Colorado, however the form refers to apportioning the amount from the federal return. Since only military moves are allowed for a deduction on federal there would not be an amount in the federal column of the 104PN to apportion to Colorado.

[AndyBarrett]

Any updates on this topic? Colorado still has the ability to claim moving expenses for moving into the state yet I can find no way of entering moving expenses in my Colorado tax return.

[AmyC]

CO does not allow moving expenses as a subtraction or a credit for most people. See: Income Tax Subtractions | Department of Revenue - Taxation

tax.colorado.gov › income-tax-subtractions

However, under their revised statutes, I found this:

24-50-134. Moving and relocation expenses 

CO - Colorado Revised Statutes Annotated C.R.S. 24-50-134

TITLE 24 . GOVERNMENT - STATE > TITLE 24 STATE PERSONNEL SYSTEM AND STATE EMPLOYEES > ARTICLE 50 .STATE PERSONNEL SYSTEM - DEPARTMENT OF PERSONNEL > PART 1. DEPARTMENT OF PERSONNEL > PART 1. 24-50-134. Moving and relocation expenses

(1) When an employee in the state personnel system is required by any appointing authority, because of a change in assignment or a promotion or for any other reason related to his or her duties, to change his or her place of residence, such employee shall be allowed his or her moving expenses incurred by reason of such change of residence. Moving expenses may include the reasonable expenses of moving household goods and personal effects and the reasonable costs of traveling to the employee's new residence. Any reimbursement pursuant to this subsection (1) shall be made in accordance with ...

... C.R.S. 24-50-134 24-50-134. Moving and relocation expenses (1) When an employee in the state per...... place of residence, such employee shall be allowed his or her moving expenses incurred by reason...... The nature of moving expenses and relocation expenses that a state employee may claim pursuant t...... (a) The circumstances under which an employee is eligible to claim moving expenses and relocatio...... The circumstances under which an employee is eligible to claim moving expenses and relocation ex...

@AndyBarrett

[Maehslane]

Hello. Colorado form DR 0104PN is the part time resident form that needs to be filled out if you moved to (or from) Colorado. That form apportions your 2020 income between the old state and the new state. The form calls for all income and deductible expenses to be listed. One of the deductible expenses is moving expense, but only for members of the military. There is no line item for moving expenses for civilians, unfortunately. My wife and I moved to Colorado in 2020 and are civilians, so we got “screwed” by the Trump tax reform.