Colorado did not conform to the federal exclusion of unemployment income for tax year 2020.
What if I already filed before the federal exclusion during March 2020?
If you already filed with unemployment included on return, you do not need to take any additional action with respect to the Colorado 2020 return.
What if I didn't file yet and the unemployment is being excluded from the federal return?
If you have not yet filed, you will need to add back the amount of unemployment compensation excluded from the federal taxable income. The program will automatically add back the unemployment compensation.
How do I add the unemployment back to my state return?
The program will automatically add back the unemployment compensation. If you have to add the unemployment exclusion back to the account manually (for any reason), please follow these directions:
- State Section
- Addition to Income
Complete the sections for 'Enter Other Additions as required by Colorado Law' and enter the description of 'Other Additions' entered above as 'Unemployment Compensation'.
What if I amend my federal return?
If you are amending your 2020 federal return for the unemployment exclusion, the IRS recommends you wait for them to make the adjustment automatically. However, if you do amend the federal return, do not amend the Colorado return to exclude the unemployment income.