Colorado Form 104 Line by Line Guide
Did you know there are 9 States that don't require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are exempt from this extra bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's my point? People who live in these states are able to buy more stuff because they don't pay any state tax. Jealous?
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are essentially designed to collect the same data, they are all constructed differently. What follows is a breakdown of Form 104, the Colorado Individual Income Tax Return. If you don't live in Colorado, not to worry, we'll be tackling the other 34 states soon enough.
The Colorado Department of Revenue should teach the other states how to design tax forms. This piece of cake is only 47 lines long and ultra easy to complete. So what are we waiting for, the Rockies to win a World Series?
Start by filling in the top portion of the form. Simply log your name, address, Social Security number, and your residency before your proceed.
On Line 1 enter the amount from Line 43 of your federal 1040 form. Then enter your state income tax deduction (you can find it on Line 5 of your Schedule A), on Line 2. If you have any other additions, explain yourself and enter them on Line 3. Then add Lines 1 through 3 and put the total on Line 4.
On Line 5 enter last year's state income tax refund; you had to have reported last years refund on Line 10 of your 1040. On Line 6 enter any government interest, while entering your pension data on Lines 7 and 8. On Line 9 record any capital gains you incurred while living in Colorado.
On Line 10 enter a tuition program contribution. On Line 11 enter any charitable contributions, and see if you have any other subtractions listed on Line 12. Now total Lines 5 through 12 and put the total on Line 13.
On Line 15 record your Colorado tax from the tax table found in the instruction booklet. If it applies, enter your class="form_pic" alternative minimum tax from Form 104AMT on Line 16. On Line 17 the form allows you to recapture any credits from previous years. Now total Lines 15 through 17 and enter that amount on Line 18.
Now total any nonrefundable credits, just be sure that these aren't more than your total tax on Lines 15 and 16. Then figure your net tax by subtracting Line 18 from Line 19. On Line 21 enter your state withholdings, and on Line 22 enter any estimated tax credits or payments. On line 23 you get to record a child care credit, you can get it from Line 5 or 6 from Form 104CR. Then add up Lines 21 through 23 and put the total on Line 24.
On Line 25, you'll need to enter your adjusted gross income. You can find it on your 1040 form (line 37). Then subtract Line 20 from Line 24 and enter the total on Line 26. Would you believe we've already figured your overpayment and potential refund? Now enter the amount you want credited on next year's return on Line 27.
Lines 28 through 43 cover charitable donations for things like the Special Olympics Colorado fund to the Multiple Sclerosis fund. Once you've gathered all the monies you've donated add Lines 28 through 42 and enter the total on 43.
Now subtract Line 26 from Line 43 to get your refund, which goes on Line 44. The Department of Revenue would appreciate it if you e-file and gives you the opportunity to jot down your bank account and routing numbers.
On Line 45 enter the net amount of tax due, this is your tax bill. On Line 46 declare any penalties you've incurred. On Line 47 enter interest on any late taxes, and on Line 48 enter any estimated tax penalty you think you'll incur next year. On Line 49, subtract Line 24 from Line 20 to figure your remaining tax liability. Finish the form by signing, dating, and recording your birthday at the bottom.
Can it be that easy?
This Colorado form is taking the mantle from Alabama as being the easiest in the country. It's brief, to the point, and self-explanatory. Even the instruction booklet is light on the heavy confusing language. Look, if you're going to pay a state tax, do yourself a favor and live in a state that makes it easy to file. Colorado is one such state.
