What is the state income tax deduction addback?
who itemize deductions on their federal returns (federal Schedule A),
and estates and trusts must add back on the Colorado income tax return
any state income tax included in their federal deductions. Individuals
who do not itemize deductions on the federal income tax return will not
be required to add back the state income tax since the amount is not
deducted from their gross income.
If the difference between
your total itemized deductions, and
the standard deduction you could have benefited from
less than the state tax deduction, you should review FYI Income 4 to
determine if you are eligible to add back an amount that is less than
the state income tax addback.
For Further Information:
FYI Income 3
FYI Income 4
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