Worksheet For Recipients Of Pera/dps Pension Benefits

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TAXPAYER SERVICE DIVISION
FYI – For Your Information
Subtraction from Income for Recipients of
PERA or Denver Public Schools Retirement
Benefits
The Colorado Individual Income Tax
NOTE: If your total federally taxable
Return Form 104 enables recipients of
pension income from all sources is less
certain pension benefits to exclude from
than $20,000 and you are 55-64 years of
their Colorado taxable income portions of
age, or if your federally taxable pension
their benefits for which they previously
from all sources is less than $24,000 and
paid Colorado income tax. [§39-22-
you are 65 years of age or older, STOP!
104(4)(c), C.R.S.] There is no age limita-
You will not need to use this subtraction
tion for this subtraction. If you receive
because all of your pension income is fully
pension benefits, you might be able to use
excludable for Colorado income tax
this subtraction if:
purposes under the regular $20,000/
$24,000 pension subtraction.
• You made employee contributions to
the Public Employees Retirement
The subtraction does not apply to
Association (PERA) any time between
you if:
July 1, 1984 and Dec. 31, 1986 and you
• You began receiving PERA benefits
are receiving PERA benefits during the
before July 1, 1984 or Denver Public
current tax year.
Schools benefits before Jan. 1, 1986;
• Or, you made employee contributions
• Or, you excluded the total amount of
to the Denver Public Schools Employ-
your previously taxed contributions on
ees Pension and Benefit Association
Colorado income tax returns in prior
any time between Jan. 1, 1986 and Dec.
years.
31, 1986 and you are receiving benefits
from this Association during the
Use the worksheet on page 4 to determine
current tax year.
the amount, if any, you can enter as a
subtraction on your Colorado income tax
These contributions were subject to state
return.
income tax in the years they were paid,
Colorado Department
of Revenue
but were tax-deferred for federal income
Common Questions:
Taxpayer Service Division
tax purposes. This means you must pay
1375 Sherman St.
Denver, Colorado 80261
federal income tax when you receive
1) Why is the amount of pension
benefits on which federal income tax
benefit payments upon retirement or
Forms and other services:
(303) 238 -FAST (3278)
is owed different from the amount on
termination. The subtraction on your
Assistance:
which state income tax is owed?
Colorado return enables you to subtract
(303) 238- SERV (7378)
from taxable income the amount of
Before July 1, 1984, employee contribu-
pension benefits on which you already
tions to PERA and the DPS pension plans
paid state income tax.
PAGE 1 OF 4
INCOME 16 (10/06)
were subject to both state and federal

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