I need a workaround for unemployment benefits received as the apply to line 9 of Colorado Form 104PN.

[warrenite41]

Line 9 of Colorado Form 104PN states: "Enter income from line 8 that is from State of Colorado unemployment benefits; and/or is from another state's benefits that were received while you were a Colorado resident." My client was issued his unemployment compensation from Colorado, but he received them after he moved from Colorado to Kentucky. I prepared the PY allocation properly. The UC benefits are taxed to KY where received but CO is also taxing them. On line 9 of the 104PN, the Colorado Information column has all the unemployment benefits (>$10,200) received by my client. It doesn't seem to allow for when the opposite happens. That is, they want to tax UC benefits paid by other states while the recipients are CO residents, but not vice versa. I can't find any place on the 104PN to make a deduction/allowance for this oversight.

[warrenite41]

Addendum to my problem. Would it be advisable to just override the value that represents the UC in the Colorado Information of line 9, Form 104PN? I use the override as a last resort. Just want to make sure there isn't another proper way.

[Diane 4]

I understand what you are saying, but I'm sorry that I don't have the solution. It makes sense to me that you would enter 0 on line 9, but I don't know if that is correct.

Maybe you can help me. I'm trying to determine the proper way to enter the $10200 UCE on 104PN since the taxpayer excludes it from federal, but it's taxable in CO. If on the federal portion, line 18 I entered -10200, to figure taxable income, what should go on the CO portion, line 19, is it 0 or -10200? Then on federal, line 26, I entered 10200 back in to figure MAGI, what goes on CO portion, line 27, is it 0 again or 10200?

Thank you

[warrenite41]

Since my problem is the exact opposite of yours, I'll tell you how I ended up with the UC on line 9 of Form 104PN. You start at the Part Year Resident State Allocation Worksheet on the Federal. If you already have the CO state started and it's wrong, delete it and do the allocation first. On line 9 of the worksheet is where you enter the UC. Just be sure you get the source and resident states right as well as when received. Then create the CO return. It should show on line 9 where the column says Colorado Information. I had to do this a couple times ie deleting the CO return and starting again with the PY Allocation worksheet. I had originally created the CO return before the software update. So I then had to delete it and start again. Hope this helps. My problem still awaits a solution.

[Diane 4]

Thank you for your response.

Reviewing your original question again I do believe you should have a 0 on line 9 of 104PN, as it asks for "...benefits that were received while you were a Colorado resident". His benefits were not received when he lived in CO.