If you received a Colorado Schedule K-1 (Form DR 0106K) from a partnership or S corporation, you may need to enter information from that form on your Colorado return.
Colorado instructs partners and shareholders claiming Colorado tax credits from a partnership or S corporation to obtain Form DR 0106K from the entity and use the information reported on the form when completing their return. The Colorado Department of Revenue also uses the form to verify any credits claimed.
Program Entry
Follow these steps:
State
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Miscellaneous Forms
CO DR 0106K, Colorado K-1
Enter the information exactly as it appears on your Colorado DR 0106K.
What Is Form DR 0106K?
Form DR 0106K is a Colorado Schedule K-1 issued by a partnership or S corporation. It reports Colorado-specific information that may affect your state tax return, including certain income, deductions, additions, subtractions, and credits that flow through from the entity to you as a partner or shareholder.
Who Should Complete This Section?
Complete the CO DR 0106K section if:
- You received a Colorado DR 0106K from a partnership.
- You received a Colorado DR 0106K from an S corporation.
- Your DR 0106K reports Colorado tax credits or other Colorado tax items that must be included on your return.
If you did not receive a DR 0106K, you can generally skip this section.
What Information Will I Need?
Have a copy of your Colorado DR 0106K available when entering information. Depending on the entity, the form may include:
- Entity information
- Ownership percentage
- Colorado income amounts
- Additions or subtractions
- Colorado tax credits
- Withholding or other pass-through tax information
Enter all amounts exactly as shown on the form.
Claiming Colorado Credits From a Partnership or S Corporation
The Colorado Individual Income Tax Instructions state that taxpayers claiming a tax credit as a partner or shareholder must obtain Form DR 0106K from the partnership or S corporation. The credit is entered on the taxpayer's return, and a copy of the DR 0106K must be provided with the return. The Department of Revenue verifies the credit by reviewing the entity's filing.
Frequently Asked Questions
Do I need to enter both my federal K-1 and Colorado DR 0106K?
Yes. If you received both forms, enter the federal Schedule K-1 in the federal section and the Colorado DR 0106K in the Colorado state section. The forms may contain different state-specific information.
What if my DR 0106K shows a Colorado tax credit?
Enter the credit information from the DR 0106K in the section for Partner's Share Of Credit. This section is accessible after entering the Pass-through Entity Information. Colorado uses the DR 0106K to verify credits passed through from partnerships and S corporations.
Can I skip this section if I already entered my federal K-1?
No. The Colorado DR 0106K may contain state-specific information that is not included on your federal Schedule K-1.
Where do I get a copy of my DR 0106K?
The partnership or S corporation that issued the income should provide the Colorado DR 0106K to you. Contact the entity if you have not received your copy.