2022 Colorado DR 0104AD Lines 3-8

[dwashburn]

 Problem with Social Security benefit subtraction along with retirement pension, annuity, IRA.

Line 3 - Taxpayer social security benefit is correct, but if the taxpayer is over the age of 65, they are entitled up to $24,000 subtraction. Lacerte isn't doing this correctly and should be automatic. My case is a 75 year old taxpayer with taxable social security benefit of less then 24,000 but has regular distributions of about 18K. I expected line 4 to be the difference in line 3 and 24,000. but it did not populate.

Line 3 if the taxpayer's taxable social security on Federal return is higher then 24,000, then they would get the higher amount. Line 4 would then not populate.

This issue i expect would be the same for lines 5 & 6 if Married Filing Jointly with taxable social security and other retirement distributions that qualify on the Federal Tax Return.

I expect this issue to be a problem for a lot of Lacerte users who are based in Colorado and doing Colorado returns. Please review and correct those lines based on the DR 0104AD instructions.

[CO-Retiree]

Line 4 on 2022 DR 0104AD is not populating, and Turbotax needs to be updated for HB 21-1311

Adjustments to Taxable Income Social security income.

Under current law, taxpayers may deduct a limited amount of pension and annuity income, which includes federally taxable social security income, when calculating Colorado taxable income. The deduction is limited to $20,000 for taxpayers age 55 to 64, and $24,000 for taxpayers age 65 and over. Beginning for tax year 2022, the bill increases the limit so that all federally taxed social security income is deductible in Colorado. The current caps still apply to all other forms of pension and annuity income and the caps may only be exceeded when social security income specifically is higher than the cap. For taxpayers whose social security income exceeds the $20,000 and $24,000 caps, the deduction is limited to their amount of social security income.

[abctax55]

@CO-Retiree 

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[leanneqcpa]

Having the same issues.  Colorado is sending notices.  Taxpayer is 84 had more then $24,000 in Social Security Benefits and Lacerte is taking the entire amount on the DR0104AD and sending notices of deficiency because we did not catch it.  It needs to be fixed.