1. Do I have to file and/or pay income tax in Colorado?
You must file a Colorado income tax return if you fall into one of these categories:
- During the year you were a full-year, part-year or non-resident of Colorado with Colorado taxable income AND you were required to file a federal income tax return.
- You had a Colorado income tax liability for the year.
2. Do I need to make estimated tax payments for my Colorado income tax?
Yes, an individual (or married couple, if filing jointly) must remit Colorado estimated tax payments if their total Colorado tax liability exceeds $1,000. In the case of wage/salary income, the employer withholds the applicable amount of tax and remits it to the Department on the employee’s behalf. For other types of income, state income tax is generally not withheld. For more information, review the FYI Income 51 guidance publication.
3. How do I file an individual income tax return in Colorado?
Before you file your individual income tax return, you will need to complete the federal income tax return first. Then, you will use the figures from your federal return on your Colorado income tax return.
4. What is a Colorado resident?
A Colorado resident is a person who has made a home in Colorado or a person whose intention is to be a Colorado resident. The Department will consider, among other things, Colorado voter registration, Colorado vehicle registration, Colorado driver license, school registration, property ownership and residence of spouse or children in determining intention to be a Colorado resident.
5. How do I establish residency in Colorado?
You can establish residency in one of the following ways:
- Own or operate a business in Colorado
- Are gainfully employed in Colorado
- Reside in Colorado for 90 consecutive days