Colorado State Tax Deductions - 2012, 2013
2013 Colorado Income Tax Deductions
|Colorado Standard Deduction|
|Colorado Personal Exemption|
|Colorado Dependent Deduction|
Colorado income tax deductions are above-the-line expenses that can be deducted from your gross income before you calculate your taxable income.
Colorado supports many of the same deductions as the IRS does for your federal income tax return. You may be able to reuse many of your Federal income tax deductions, including any itemized deductions from your Federal 1040 Schedule A.
Colorado may have different rules or cut-offs for certain deductions, so you should still double check to ensure that your deductions are permitted under Colorado tax law. For more information about the Colorado income tax, see the main Colorado income tax page.
Colorado Standard Deduction
Unlike many other states, Colorado has no standard deduction. Certain itemized deductions (including property tax, qualified charitable contributions, etc) may be allowed depending on the income level and filing type of the taxpayer. Keep in mind that not all deductions allowed on your federal income tax return are necessarily going to be allowed on your Colorado income tax return.
Colorado Personal Exemption
Colorado has no personal exemption. The Federal Income Tax, however, does allow a personal exemption to be deducted from your gross income if you are resposnible for supporting yourself financially.
Colorado Dependent Deduction
Unlike most states, Colorado does not have a dependent deduction. You can, however, claim dependent deductions on your Federal Tax Return.
Colorado Itemized Deductions
Colorado closely follows Federal rules regarding itemized deductions, so you should be able to reuse your Federal itemization with your Colorado income tax return. Colorado may still have state-specific rules for certain deductions, so be sure to double-check your itemization before you file.
A variety of expenses can be itemized as deductions on your Colorado tax return. Here's a list of some of the most popular itemized deductions.
- Mortgage Interest Deduction - If you have a mortgage on a first or second home, you may deduct mortgage interest paid as defined in 26 U.S.C. § 163(h).
- Medical Deductions - You can deduct up to 7.5% of your out-of-pocket medical and dental expenses. Self employed individuals may also deduct premiums for qualifying health insurance plans.
- Charitable Donations - Donations to qualifying charities or nonprofit organizations are 100% tax deductible, up to 50% of your gross income.
- Education and Tuition Deduction - If you paid tuition to an accredited college or university, you can deduct some or all of the tuition and fees you paid. You cannot deduct housing, food, or other secondary expenses, but you may deduct interest accrued on student loans.
- Self-Employment Deductions - If you pay both the employee and the employer's half of the payroll tax, you may deduct the employer's half from your gross income. This deduction generally applies to individuals who are self-employed or small business owners.
- Property Tax Deduction - Many states allow you to deduct any property tax paid to a county or municipality from your gross income.
- Business Deductions - Qualifying business expenses, business losses, and losses due to theft or depreciation may be itemized and deducted.
- IRA Contribution Deduction - You can deduct a limited contribution to your qualifying Individual Retirement Account every year. The deduction limits for 2012 are $5,000 per year for individuals under 50, and $6,000 per year for individuals 50 or over.
|Colorado Income Tax Deductions Table|
- Before information on the 2013 Colorado income tax deductions are released, provisional 2013 deduction information is based on Colorado's 2012 tax deduction policy.
- The 2013 Colorado standard deductions, personal exemptions, and dependent deduction amounts are sourced from the Colorado Department of Revenue .
- Information on Colorado's itemized deduction policy is updated from the Colorado Department of Revenue and the Internal Revenue Service.