Colorado Payments Section Overview

The Colorado Payments section is where you enter payments you've already made to Colorado, apply a refund to next year's taxes, make voluntary donations, and report any interest or penalties that apply to your return.

Program Entry

• State
• Select the 3 dots to the right for edit
• Payments

Adjustment to Prior-Year Estimated Tax Carryforward

Use this field to enter or adjust the amount of a prior-year Colorado refund that was applied to the current year's estimated taxes.

Colorado allows taxpayers to carry all or part of an overpayment forward to the next tax year as an estimated tax credit. This amount is reported as a prior-year estimated tax carryforward on Form DR 0104. 

When should I enter an amount?

Enter an amount if:

• You elected to apply part of last year's Colorado refund to this year's taxes.
• The amount transferred into the return does not match your Colorado records.
• You need to correct a carryforward amount that was imported from your federal entries.

Extension Payment Remitted With Form DR 0158

Use this field to enter any payment you made with Colorado Form DR 0158.

Colorado grants an automatic extension of time to file your return, but any tax due must still be paid by the original due date. Payments made with Form DR 0158 are reported as extension payments on the Colorado return.  

When should I enter an amount?

Enter an amount if you:

• Made a Colorado extension payment before filing your return.
• Submitted payment directly to the Colorado Department of Revenue using Form DR 0158.

Do not enter Colorado withholding from a W-2 or 1099 in this field.

Prepayments

Other Prepayments

Enter the total amount of qualifying Colorado prepayments made on your behalf.

Only enter payments that have not already been included elsewhere in your Colorado return.

Apply Your Refund to Next Year's Colorado Taxes

Enter the amount of your Colorado refund you would like applied to next year's Colorado estimated taxes.

Before entering an amount, keep the following in mind:

• Your Colorado return must be completed and saved before the program can calculate your refund.
• The amount entered cannot exceed your available Colorado refund.
• If your return shows a balance due, you cannot apply money to next year's taxes.
• Any amount greater than your available refund will not transfer to the Colorado return.

Applying a refund to next year's taxes can help reduce future estimated tax payments.

Colorado Donations

Colorado allows taxpayers to donate part or all of a state refund to approved charitable and governmental programs through the voluntary contribution process. Any donation you choose will reduce the amount of your refund. Visit the Colorado Instructions for a list of Voluntary Contribution Eligible Funds.

Before making a donation

• Donations are optional.
• Contributions are deducted from your Colorado refund and generally cannot be elected when the return does not produce a refund.
• Your refund will be reduced by the amount donated.

Interest

Use this field to enter any applicable Colorado interest.

Colorado may charge interest on unpaid taxes when payment is made after the original due date.

You may owe interest if:

• Your tax was paid after the due date.
• You did not pay the full amount owed by the due date.
• You received a notice from Colorado showing interest due.

Leave blank if

• No interest is due.

Penalties

Use this field to enter any Colorado penalty amount that applies to your return.

Colorado may assess penalties for late filing, late payment, and underpayment of estimated taxes. The Colorado instructions include separate calculations for delinquent payment penalties and estimated tax penalties. 

Common reasons penalties apply

• Filing your return after the due date.
• Paying taxes after the due date.
• Not paying enough tax during the year through withholding or estimated payments.

Leave blank if

• No penalties are due.

Important Tips

• Verify all W-2 and 1099 withholding information before completing the Colorado return.
• Keep records of any estimated tax or extension payments made directly to Colorado.
• If you want to apply part of your refund to next year's taxes, complete and save your Colorado return first.
• Review all imported payment amounts to ensure they match your records before filing.