Colorado Overtime premium add back.

[LB200]

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.

[JamesG1]

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.

[LB200]

Hi JamesG1,
Thank you for your reply. I’m still a bit confused. When I preview my Colorado state return in TurboTax (under Tax Tools), the Colorado calculation for “Federal Taxable Income” is pulling the amount directly from line 15 of my federal Form 1040 — which has the overtime premium removed.
However, my understanding is that Colorado requires the overtime premium to be added back to Colorado taxable income, and that is not the case in Turbotax.

[CatinaT1]

.

[thecatsfan]

This is not correct.  The amount on federal 1040 line 15 does not include any qualified OT premium. 
 deducted on the federal return.

The good news is, Colorado has formally acknowledged they are not requiring the OT be added back for the 2025 tax year.

[thecatsfan]

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

[RogerD1]

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."

[thecatsfan]

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.