Filing a Colorado Income Tax Return
Income tax is prorated so that it is calculated only on income received in Colorado or from sources within Colorado. You will calculate your prorated tax by completing the DR 0104PN. You must submit the DR 0104PN with your DR 0104 return.
Those born in or belonging to another country who have not acquired U.S. citizenship who are residents of Colorado for the full tax year would file as a full-year Colorado resident. Aliens residing in Colorado for only part of the tax year would file as a part-year resident. Aliens who are not Colorado residents, but who earn Colorado-sourced income for part or all of the tax year would file their Colorado income tax return as a Colorado nonresident.
For more information, review the Part-Year/Nonresident Income Tax guidance publication.
Nonresident Definition
A nonresident is an individual who did not reside within the boundaries of Colorado at any time during the tax year. However, the person may have temporarily worked in Colorado and/or received income from a source in Colorado. A nonresident is required to file a Colorado income tax return if they:
- are required to file a federal income tax return, and
- had taxable Colorado-sourced income.
Nonresidents will initially determine their Colorado taxable income as though they are full-year residents. Nonresident of Colorado will complete the Colorado Individual Income Tax Return (DR 0104) and the Nonresident Tax Calculation Schedule (DR 0104PN) to determine what income will be claimed on the DR0104 form.
Part-Year Resident Definition
A part-year resident is an individual who was a resident of Colorado for only part of the tax year. This includes anyone who moved into Colorado with the intention of making his/her home here or a Colorado resident who moved out of Colorado with the intention of making his/her home elsewhere any time during the tax year.
Part-year residents will initially determine their Colorado taxable income as though they are full-year residents. A part-year resident of Colorado will complete the Colorado Individual Income Tax Return (DR 0104) and the Part-Year Resident Tax Calculation Schedule (DR 0104PN) to determine what income will be claimed on the DR0104 form.
Living Out of the Country
A Colorado resident reporting U.S. federal taxable income must continue to file Colorado returns as a full-year resident no matter how long he or she is out of the country. Most such individuals are working on a temporary assignment, and plan on returning to Colorado. However, all foreign income that is exempt for federal purposes is also exempt for Colorado purposes.
Individuals who abandon their Colorado domicile and become permanent residents of a foreign country no longer have to file Colorado returns. However, they would have to file a Colorado tax return as a nonresident if they had Colorado-sourced income (e.g., rental income). Such individuals bear the burden of proving their abandonment of Colorado residency.
Continued Colorado residency will be presumed if the individual has not severed all Colorado connections, for example, if the individual still carries a Colorado driver license, votes in Colorado by absentee ballot, still owns a home in Colorado, and/or returns to Colorado.
Can I use the Department's automatic extension to file?
If you are traveling or residing outside the United States on April 15, the deadline for filing your return is June 15. If you need additional time to file your return, you will automatically have until October 15 to file. Interest is due on any tax paid after April 15. To avoid any late payment penalties, you must pay 90% of your tax liability by April 15, file your return by October 15, and pay any remaining tax due at the time of filing. If the due date falls on a weekend or federal holiday, return will be due the next business day. When filing your return, mark the “Abroad on Due Date” box on Revenue Online or the paper return.