Colorado Overtime premium add back.

Forum|Forum|3 months ago
February 15, 2026
2 replies
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I am filling out my 2025 taxes and taking advantage of the federal overtime deduction (OBBBA). My understanding is that I need to add back the deducted overtime premium when completing the Colorado state return. I’m using TurboTax Online, but I don’t see a specific place to enter this—unless it falls under Income → Miscellaneous Additions.
Does anyone know where this adjustment should be entered?
Thank you.

TurboTax Basic Windows

JamesG1

Level 15

You do not have to add the qualifying overtime deduction to the Colorado income tax return.

If you report the qualifying overtime deduction on the Federal return, the Colorado income tax return adjusts the deduction back automatically.

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thecatsfan

Level 2

No text available

thecatsfan

Level 2

You do not need to add the OT premium back for Colorado.

RogerD1

Level 6

For the 2025 tax filing, Colorado is not adding back the Federal deduction for non-taxable overtime pay. Colorado has recently passed legislation that will require adding back the Federal deduction of overtime on the 2026 return.

The following comes from the Colorado Individual Income Tax Guide: "Overtime compensation deduction addback

For tax years 2026 and later, an individual who claims a deduction for overtime compensation on their federal income tax return must add back the amount of the deduction on their Colorado return. The addback is required for the full amount of the federal deduction claimed on the taxpayer’s IRS Schedule 1-A (Form 1040).

No addback is required on the taxpayer’s Colorado return for any deduction claimed on their federal return for qualified tips."

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thecatsfan

Level 2

RogerD1

Thank you for that confirmation. I have been waiting on a formal ruling form Colorado but had not looked recently. I do see this now. Thank you for pointing it out.

It's too bad so many wrong answers had to be posted first.