What type of income needs to be added to my Colorado return?

All income entered on your Federal return is automatically carried to your resident state return; however, Colorado taxes certain items of income not taxed by the Federal government.

Qualified Business Income Deduction Addback

If you claimed a deduction for qualified business income on your federal return and your adjusted gross income is greater than $500,000 ($1,000,000 if filing jointly), you are required to add to federal taxable income an amount equal to that deduction. 

Alternatively, if you are a partner in a partnership that made a SALT Parity Election or a shareholder in
an S corporation that made a SALT Parity Election, you are required to add back the entire deduction regardless of your adjusted gross income. This addback is not limited to the deduction taken with respect to the electing partnership or S corporation. 

Nonqualified CollegeInvest Tuition Savings Account Distributions

If you took a distribution from a CollegeInvest Tuition Savings Account and did not use it on a qualified expense, you must make an addition to your Colorado state return.

Nonqualified Colorado ABLE Account Distributions

If you took a distribution from a Colorado ABLE Account and did not use it on a qualified expense, you must make an addition to your Colorado state return.

Adjustments to Federal Schedule A, Line 5.

Taxpayers who have federal adjusted gross income exceeding $300,000 in tax year 2024 may be
required to add back itemized or standard deductions over a certain amount.

Other additions

Below is other income that should be added to your Colorado return:

• Other Additions as required by Colorado law:
  • Bond Interest
  • Charitable Gross Conservation Easement 
  • Alien Labor
  • Partnership/Fiduciary
  • Any expenses incurred by a taxpayer with respect to expenditures made at, or payments made to, a club that restricts membership on the basis of sex, sexual orientation, marital status, race, creed, religion, color, ancestry or national origin.
  • Distributions from a medical savings account not made for an eligible expense

Program Entry

1. State Section
2. Edit Colorado state return
3. Additions to Income

For more information on these additions, please click here.