State taxable income for a part-time resident

Question

I was a part-time resident in CO and IL for one W-2, with no overlap, but the state filing summary shows that my CO taxable income is the same amount as the federal taxable income despite correctly inputting the CO portion of the income in the state filing page. It shows up correctly for IL. How can I fix this for CO?

WrenD · Answer

Hello dinosaur2025 & honeypuff,

Great question! This is something a lot of people ask when they’re filing taxes for more than one state, because every state has its own way of doing things.

For Illinois, they start with the amount of income you reported as being earned in Illinois. That’s the income they use to figure out how much is taxable. Then, they apply the Illinois tax rate to that amount.

Colorado does it differently. They start with your total federal income and figure the tax on that full amount. Then, they calculate the percentage of income earned in Colorado. They use that percentage to reduce the tax, so you're only paying for the Colorado portion.

So, even if the taxable income looks like your full federal income, the amount you said was earned in Colorado is what they use to figure out how much you really owe there.

Please reach out directly to Customer Support while logged into your account, and they will be happy to assist you with your specific returns.

honeypuff · Answer

I also have this problem. :(

Did you figure out any solutions?