Form 106ep - Estimated Tax-Composite Nonresident Worksheet

Composite Nonresident Return Estimated Income Tax

Instructions

Estimated tax is the method used to pay tax on income that is

It is strongly recommended that these payments be submitted

not subject to withholding. Individuals who are not residents of

electronically to avoid problems and delays. The single form can

Colorado (nonresidents) must pay tax on any Colorado-source

be copied and used for each of the four quarterly payments if an

income. This is intended for nonresident individuals who are

electronic payment cannot be made for any reason.

included in a form 106 composite filing. See publications FYI –

Penalties

Income 51 and Income 54 for more information, available at

Failure to timely remit estimated tax as necessary will result in

an Estimated Tax Penalty. Exceptions will be given to farmers or

fishermen who file and remit full payment by March 1. Otherwise,

General Rule

In most cases, you will pay estimated tax if an individual

penalty will be calculated for each missed or late payment. For

calculation specifics, or to remit this penalty before being billed,

partner expects to owe more than $1,000 in tax for 2013, after

subtracting any withholding or refundable credits they might have.

see Form 204.

This rule must be calculated for each individual included in the

Refunds

composite return, and not as the composite as a whole.

Estimated tax payments can only be claimed as prepayment

Required Payments

credit on the 2013 Colorado income tax return. Therefore,

The required annual amount to be paid by each individual

estimated payments cannot be refunded in any manner until such

time that the Colorado income tax return is filed.

included in the composite (if not excluded by the general rule) is

the smaller of:

Go Green with Revenue Online

a. 70% of the actual net Colorado tax liability.*

allows taxpayers to file taxes,

b. 100% of the preceding year’s net Colorado tax liability. This

make payments and monitor their accounts. Form 106EP is not

rule only applies if the preceding year was a 12-month tax

required if an electronic payment is remitted through this site.

year, the individual filed a Colorado return, and the federal

Please be advised that a nominal processing fee may apply to

adjusted gross income on that return was $150,000 or less

online payments.

(or, if married filing separately, $75,000 or less).

Pay by Electronic Funds Transfer (EFT)

c. 110% of the preceding year’s net Colorado tax liability. This

EFT payments can be made safely and for free, and can be

amount only applies if the preceding year was a 12-month

schdeuled up to 12 months ahead of time to avoid forgetting

year, and the individual filed a Colorado return.

to make a payment. This requires pre-registration before

*The net Colorado tax liability is defined as the sum of Colorado

payments can be made. Visit

for registration information.

tax, alternative minimum tax, and the recapture of prior year

credits, minus the sum of all credits other than withholding and/or

Additional information, FYI Publications and forms are available at

estimated tax credits.

, or you can call 303-238-SERV (7378) for

Calculating the Payment

assistance.

Use the provided Worksheet to calculate the amount of

estimated tax owed for each nonresident individual included in

the composite. Reference the previous year Colorado income

tax return form and instructions for help determining taxable

income. Submit payments according to the due date table

provided.

Form 106ep - Estimated Tax-Composite Nonresident Worksheet - 2013 Page 2

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