Article: 50692
What is the 104-CR Credit for Tax Paid to Another State?
Colorado Form 104-CR includes a section for claiming a credit for income tax paid to another state. If you are a Colorado resident who earned income in a different state and paid income tax to that state, you may be eligible to claim this credit to avoid being taxed twice on the same income.
Who Should Use This Section?
Taxpayers who:
- Are full-year residents of Colorado,
- Earned income in another state, and
- Paid income tax to that state
should complete this section to determine eligibility for a credit that can reduce their Colorado tax liability.
How to Add CO – 104-CR – Income Tax Paid to Another State
To include this credit on your Colorado return, you will need to add the screen CO – 104-CR – Income Tax Paid to Another State:
- Go to the State Taxes section.
- Click I’d like to see the forms I’ve filled out or search for a form.
- Choose Colorado from the dropdown.
- Under the Credits tab, select CO – 104-CR – Income Tax Paid to Another State.
- Complete the form using the following information:
- Select the name of the other state to which you paid income tax.
- Enter your Modified Colorado AGI from sources in that state.
- Provide the tax liability amount you paid to that state.
- Click Save to finalize.
Helpful Tips
- Make sure the other state has an actual income tax (not all states do).
- The income must be subject to tax in both Colorado and the other state to qualify for the credit.
- Keep records of your out-of-state income and tax payments (such as W-2s, 1099s, and that state’s return).
- This credit cannot exceed the amount of Colorado tax attributable to the same income.
Need More Information?
Consult the instructions for Colorado Form DR 0104CR or visit the Colorado Department of Revenue website for more information. A tax advisor can also help ensure you’re calculating and applying the credit correctly.