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HB18-1060

Income Tax Deduction For Military Retirement Benefits

Concerning a state income tax deduction for military retirement benefits for an individual who is under fifty-five years of age.
Session:
2018 Regular Session
Subject:
Fiscal Policy & Taxes
Bill Summary

Income tax - liability determination - military retirement benefits. The starting point for determining state income tax liability is federal taxable income. This number is adjusted for additions and subtractions (deductions) that are used to determine Colorado taxable income, which amount is multiplied by the state's 4.63% income tax rate. The act allows an individual who is under 55 years old and whose military retirement benefits are less than $40,000 to claim a deduction in the following amount:

  • For the 2019 income tax year, 25% of the individual's military retirement benefits;
  • For the 2020 income tax year, 50% of the individual's military retirement benefits or $10,000, whichever is less; and
  • For the 2021 and 2022 income tax years, the individual's military retirement benefits or $10,000, whichever is less.

The act also requires the department of revenue, as part of its tax profile and expenditure report, to estimate the number of individuals who claim the new deduction for the 2019 income tax year, and of those, the number who are first-time filers in the state.


(Note: This summary applies to this bill as enacted.)

Status

Introduced
Passed
Became Law

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Bill Text

COVID-19 Resources
2021 Ballot Information Booklet (Blue Book)
NORTH ENTRANCE IS CURRENTLY CLOSED.  TO ENTER THE CAPITOL, USE THE SOUTH ENTRANCE, UNDER THE STAIRS, AT 14th AVENUE AND SHERMAN STREET.