Worksheet For Recipients Of Pera/dps Pension Benefits (Page 3 of 4) in pdf

EXAMPLE

Mr. Colorado Worker terminates employment with the state on June 1, 2006. He is not

retiring. He will take a job with a private company. However, he decides to collect his

PERA contributions at the time he leaves state service. His 2006 federal taxable income

includes total PERA contributions of $15,000.

The entire $15,000 amount was federally tax-deferred while $12,000 was state tax-deferred.

Contributions federally tax-deferred

$15,000

(-) Contributions state tax-deferred

$12,000

MINUS

(=) Contributions previously taxed by Colorado

$3,000

(total contributions taxed on 1984,

EQUALS

1985 and 1986 Colorado returns)

Mr. Colorado Worker has already paid Colorado income tax on $3,000 of his PERA contributions. These contri-

butions were made in 1984, 1985 and 1986. Mr. Worker paid tax on these contributions during those years

because they were not tax-deferred for Colorado income tax purposes.

Mr. Worker is entitled to a PERA subtraction of $3,000 for these contributions. He may enter the subtraction on

his 2006 Colorado Form 104.

4) My 1099-R statement contains information about “Contributions: tax paid and tax deferred.” Will

the figures listed under these headings on my 1099-R tell me how much I can exclude on my Colorado

Form 104?

No. The information on your 1099-R reflects the amount of contributions on which you previously paid federal

income tax and the amount that is tax-deferred for federal income tax purposes. The amounts do not reflect

the correct amounts on which to base your subtraction amount on your Colorado return. If you have any

questions about the information on your 1099-R statement, contact your benefits plan office.

FURTHER INFORMATION

FYIs provide general information concerning a

FYIs, commonly used forms and

additional tax information are available on

variety of Colorado tax topics in simple and

the Web at

straightforward language. Although the FYIs

represent a good faith effort to provide

For additional Colorado tax information

accurate and complete tax information, the

visit the "Tax Information Index" which

information is not binding on the Colorado

covers a variety of topics including links

Department of Revenue, nor does it replace,

to forms, publications, regulations,

alter or supersede Colorado law and regula-

statutes and general questions and

tions. The Executive Director, who by statute

answers. The "Tax Information Index" is

is the only person having authority to bind the

located at

Department, has not formally reviewed and/or

approved these FYIs.

PAGE 3 OF 4

INCOME 16 (10/06)

Worksheet For Recipients Of Pera/dps Pension Benefits Page 3

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