Quote:
Originally Posted by tfox
That's true, however, it's important to remember that Colorado does have a benefit for retirees 55 and older: you can deduct the first 20,000 of your federal income on your state taxes. You'd have to look into it to figure out the details (I'm under 55), but it was done to attract more retirees to the state.
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It's actually the first $20K of qualified pension income, which includes SS and public/private pensions among others. It's a lot more complicated even still...if over 65 years, the exclusion is actually $24000, and if the SS benefit or pension income goes to a widow or orphaned child due to death of the person who earned the pension, the $20K exclusion applies regardless of age of the recipient.
Colorado Income Tax - Pension/Annuity Subtraction
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02-16-2008, 11:16 PM
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