Hi there. I received a 1099 R for a 401k early disbersement, which I’ve included as income on my federal return.
For my CO state return - boxes 14 (state withholding) and box 16 (state disbursement) are both blank. On the CO revenue website it says to only include 1099 forms where there is a CO withholding . So do I report this 1099 and the associated gross distribution on my state taxes, or only if there was an amount in box 14 or 16? I’m finding conflicting information online. Thank you in advance!
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You have state tax withheld on your form 1099-R when box 14 is filled with an amount.
You have to report all forms 1099-R, whether they have state tax withholding or not.
The instructions for your state tax return say to include a copy of your form 1099-R with your return that you file by mail only if there is state tax withholding.
Ok, so that means the gross distribution amount is subject to CO state taxes as well as federal? I’ve had a hard time confirming that given that the boxes weren’t checked.
Yes. See this CO Revenue document.
Money withdrawn from pensions, IRAs, 401(k) plans and other retirement plan income is subject to Colorado's 4.25 percent income tax. People 65 and older may deduct up to $24,000 in pension and annuity income from their taxable income. Typically, those ages 55 to 64 may deduct up to $20,000.Mar 23, 2025
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