Retirement military pay is considered taxable and is pulled from your federal taxable amount onto line 1 of the Colorado return.
However, Colorado has a Pension and Annuity Subtraction for taxpayers who meet certain qualifications. You can read more about this subtraction, here.
The program will automatically give the exclusion for the pension/annuity based off your age, if it has been entered on the federal return. To make any adjustments to the amount of pension being excluded, please go to:
- State Section
- Edit Colorado Return
- Subtractions from Income
- Pension/Annuity Income