State Income Tax Deduction Addback Form (Page 2 of 4) in pdf

or the difference between her total federal

When to Use the Difference Between

itemized deductions and the standard deduc-

the Total Allowable Federal Itemized

tion. In this case, the smaller amount is

Deductions and the Allowable

$6,600.

Standard Deduction

ON THE COLORADO FORM

Example 2: Ms. Brown had gross

Federal Taxable Income

$59,000

income of $70,000 during the tax year.

Addback

+ $6,600

She files single. Her total itemized

Colorado Taxable Income

$65,600

deductions on the federal Schedule A

This provides a benefit to Ms. Brown's

were $11,000. Of that amount, $9,000

Colorado Taxable Income of $2,400. (The

represented the state income tax deduc-

$9,000 state income tax deduction on the

tion. For the purpose of this example, the

Schedule A less the $6,600 difference between

federal standard deduction for a single

total itemized deductions and the federal

filer is $4,400.

standard deduction.)

ON THE FEDERAL FORM

Gross Income

$70,000

When to Use the Doubled, Single

Total Itemized Deductions -$11,000

(

including a

Standard Deduction When Filing

Federal Taxable Income

$59,000

$9,000 state

Married Jointly.

income tax

deduction, line

Example 3: Mr. and Mrs.White had gross

5, Schedule A)

NOTE: If Ms. Brown had not itemized,

income of $60,000 during the 1999 tax year.

her standard deduction would have

They file married filing jointly. Their itemized

been $4,400.

deductions on the federal Schedule A totaled

$12,000. Of that amount, $4,000 represented

If Ms. Brown uses her state income tax

their state income tax deduction. For the

deduction from Schedule A as the

purpose of this example, the federal standard

addback, the result is a $9,000 addback.

deduction for married filing jointly is $7,200

and for single filers it is $4,400.

In this situation, the difference between

Ms. Brown's total itemized deductions for

federal purposes ($11,000) and the

standard deduction taken ($4,400) is

$6,600 — less than the $9,000 she

claimed as a state income tax deduction.

Therefore, she will want to use as an

addback amount the smaller of their

state income tax deduction on Schedule A

Married Couples Filing Separate Returns

In the case of a married couple filing separate returns and itemizing deductions for federal

income tax purposes, the allowable standard deduction for Colorado income tax purposes is zero

unless it is to the advantage of each spouse to claim a standard deduction for Colorado income

tax purposes.

Worksheet for determining state income tax addbacks for a married couple filing separate

returns. Do not use negative amounts.

Taxpayer

Spouse

State income tax included

in federal itemized deductions

$ ____________

Federal itemized deductions

$ ____________

Married filing separate

standard deduction

$ ____________

Line 2 minus line 3

$ ____________

Smaller of line 1 or line 4

$ ____________

Line 2 minus line 5

$ ____________

Line 6 minus line 3

$ ____________

If there is an amount in either column on line 7, the addbacks are the amounts on line 1. If there

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are no amounts on line 7, the addbacks are the amounts on line 5.

INCOME 4 (04/01)

State Income Tax Deduction Addback Form Page 2

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