Protect Your Neighbor
We are proud to serve the great people of Colorado as efficiently and safely as possible. We appreciate your patience and understanding as we adapt to keep you and our staff safe. Visit the Available Taxpayer Services web page for the latest information on Division of Taxation operations.
All of the Taxpayer Service Centers are now open by appointment only for in-person visits. For more information and to schedule an appointment, go to the Visit a Taxpayer Service Center web page.
To assist with social distancing best practices, a drop box has been placed outside of the State Capitol Annex, and the Denver Metro, Colorado Springs, Fort Collins, Pueblo, and Grand Junction Taxpayer Service Centers. You can submit your returns, e-filer attachments, and payments (check or money order only) in that drop box. If you have any questions about the drop box, please call Taxpayer Services at (303) 238-7378 from 8:00 a.m. to 4:30 p.m., Monday through Friday.
Colorado Impact of Federal Legislation
American Rescue Plan Act Impact on 2020 Colorado Income Tax Returns
Colorado’s income tax statutes do not incorporate retroactive federal statutory changes that are enacted after the last day of a taxable year. As a result, the American Rescue Plan Act will not impact state income tax returns for the year 2020, including the taxation of unemployment compensation. The Governor and other state leaders earlier this week announced the Colorado Recovery Plan to support individuals and businesses. State leaders will continue to review the aspects of the American Rescue Plan Act to find additional ways to support individuals who have experienced unemployment and employers in Colorado who pay unemployment insurance premiums, and to support a strong economic recovery for Colorado. For more information about how this impacts your 2020 federal income tax return, visit the IRS website.
CARES Act Paycheck Protection Program (PPP) Loans
The exclusion of covered loans from gross income under section 1106(i) of the federal CARES Act (P.L. 116-136) was a prospective provision in effect during the tax year. As such, covered loans excluded from federal taxable income will be similarly excluded from Colorado taxable income.
Section 276 of the COVID-Related Tax Relief Act of 2020 (P.L. 116-260, Division N, Title II, Subtitle B) changed the Small Business Act to prevent the denial of deductions and basis increases, and the reduction of tax attributes, because of the exclusion of covered loan forgiveness from gross income. This act became law on December 27, 2020, and retrospectively applied to taxable years ending after the enactment of the CARES Act.
Therefore, these changes will impact the Colorado tax liability for calendar-year taxpayers. The Colorado tax liability of taxpayers whose tax years ended before December 27, 2020 will not be impacted by these retrospective amendments in accordance with 1 CCR 201-2, Rule 39-22-103(5.3).
Additional tax information can be found in the CARES Act Tax Law Changes & Colorado Impact guidance publication.
COVID-19 Relief for Bars, Restaurants, and Mobile Food Retailers
HB20b-1004 allows a temporary deduction from state net taxable sales for qualifying retailers primarily in the bar, restaurant and the mobile food services industries. The resulting state sales tax is allowed to be retained by the business permanently to provide assistance from business disruptions due to COVID-19 pandemic.
The special deduction does not apply to any taxes imposed by any state-administered city, county, or special district. Retailers should contact self-collecting home-rule cities regarding any similar programs they may offer. Eligible retailers are required to collect all applicable state and state-administered local sales taxes, file returns on time, and pay all local sales taxes (in addition to state sales taxes in excess of the amount related to the special deduction).
How to Find More Information
Tax.Colorado.gov is the best place to start when looking for general information. We have been making many improvements to the website and add new content regularly. You can access forms, how-to videos, guides for various tax types/topics and many more informational resources. You can also sign up to receive regular email updates for various tax types and topics.
If you are not able find what you need on our website, we are here to help. Select an option below to learn more.
COVID-19 Public Health Updates
The Colorado Department of Public Health and Environment (CDPHE) has been working hard to contain the COVID-19 pandemic, and has been partnering with federal and local health departments. For the latest health information visit the CDPHE website.
Additional COVID-19 Resources