I have reported to Lacerte that this diagnostic is incorrect. See tax.colorado.gov/TABOR
The actual rule says "AND" but the diagnostic says "OR".
Under "How the 2021 TABOR Surplus Will Be Refunded", 2nd bullet point, "Eligible full-year residents who do not have a Colorado income tax liability AND are not claiming a refund of wage withholding, must file a return by April 18, 2022." (emphasis added). (This must refer to people that are otherwise not required to file.)
I spoke with a Lacerte rep this morning and he said that as of 7/5, CODR had instructed all software providers to use the "OR". However the state's website shows "AND". So, Lacerte is not changing the diagnostic.
I will be overriding the diagnostic to e-file for my client with a state tax liability, but no withholding. I called CODR and the rep agreed with me that the diagnostic is incorrect and that the tax returns should go through claiming the sales tax refund if there is an amount for either withholding or tax liability on the Colorado return.
