Income 51: Estimated Income Tax - Department Of Revenue (Page 2 of 6) in pdf

preceding the payment due date. Taxpayers may use the annualized income installment method only if they also use

the annualized income installment method to compute their federal estimated tax payments.

Individual taxpayers can use the following schedule, taken from Part 4 of Form 204, to calculate their required

quarterly estimated payments using the annualized income installment method. In determining each required

quarterly payment amount, the taxpayer must calculate their Colorado taxable income for the annualization period,

which, for calendar year filers, runs from January 1 through the end of the month preceding the due date of the

payment. Generally, a taxpayer must first complete the federal annualized installment schedule (Schedule AI of Form

2210 or the Annualized Estimated Tax Worksheet from IRS Publication 505) in order to calculate their Colorado

taxable income for each annualization period. Part-year residents and non-residents will also need to apportion their

income to determine their Colorado taxable income (please see FYI Income 6 for information about apportionment).

Taxpayers must retain records detailing the calculation of their quarterly estimated payments and provide those

records to the department upon request.

Annualized Installment Method Schedule

September

January 15

Quarterly payment due date*

April 15

June 15

of next year

January 1 to

January 1

January 1 to

Annualization period*

March 31

to May 31

August 31

December 31

Colorado taxable income during annualization

period ……………………………………………………………………

Annualization factor .……………………………………………

2.4

1.5

Annualized taxable income (line 1 times line 2) …

Annualized Colorado tax (line 3 times 4.63%) .……

Applicable percentage …………………………………………

17.5%

35%

52.5%

70%

Installment payment amount due (line 4 times

line 5, minus any amounts entered on line 6 for

any earlier quarters) ……………………………………………

* The due dates and annualization periods listed here are for calendar year filers and must be adjusted to the

corresponding dates and periods for any fiscal year filer.

Remitting estimated payments

Taxpayers must remit any required quarterly estimated

Due dates for quarterly estimated payments*

payments by the applicable due dates. Estimated tax

Calendar year

payments are generally due on April 15, June 15, September

Quarter

Fiscal year filers**

filers**

15 of the tax year and January 15 of the following year.

Please see the table to the right for due dates for both

April 15

day of fourth month

calendar year filers and fiscal year filers. If a required

June 15

day of sixth month

payment is not remitted or is underpaid, the department

will first credit any subsequent payments to resolve the

September 15

day of ninth month

underpayment, regardless of when the payment is received.

January 15

day of first month of

Taxpayers may remit estimated payments through Revenue

the next year

the next tax year

Online or via EFT. Taxpayers remitting estimated payments

by check must include a Colorado Estimated Income Tax

* If any due date listed here falls on a Saturday,

Sunday, or legal holiday, the payment will be due on

Payment Form (104EP) with their payment to ensure proper

crediting of their account.

the next business day.

** Most individuals are calendar year filers, meaning

Any taxpayer who jointly files their estimated tax with the

they file tax returns for calendar years (from January

IRS must also jointly file estimated tax with the State of

1 through December 31). Rarely do individuals file

Colorado. Please exercise care when remitting joint

their taxes on a fiscal year basis.

estimated payments and when filing joint returns to ensure

that the taxpayers’ Social Security numbers are entered in

the same order on all submitted forms. The department credits estimated tax payments to the account associated

with the Social Security number that is listed first on the 104EP payment voucher. If, by mutual agreement between

spouses or in the case of a surviving spouse, the payment needs to be applied in a manner other than originally

Page 2 of 6 (01/17)

Income 51: Estimated Income Tax - Department Of Revenue Page 2

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