DOR Taxation web site

Common Filing Errors

While electronic filing and Direct Deposit can help get refunds to taxpayers faster, errors can delay refunds because the problems need to be reviewed and/or corrected before the refund will be issued.  Here are some common errors to avoid. Also, please see the line-by-line guide  for the 104 form.

 

1. The biggest reason errors occur is: Taxpayers need to read and follow every instruction either on a paper return or an electronic filing Web site or software.  If an FYI tax publication is referenced in an instruction, read the FYI.  FYIs referenced in the 2008 Colorado 104 booklet are  available here.

 

2. Use the correct form.  Don't use a 2007 form when filing for 2008. Please visit our Current Year Forms (Filing Year 2008) Web page.  

 

3. Use the correct payment voucher.  When mailing a check separate from a form, be sure to mail the payment in with the correct voucher.  Make sure the social security number and the tax year of the payment are clearly written or typed on the check to ensure credit for the payment.  Or, make payments the paperless way with Online Tax Payment, available at www.Colorado.gov/paytax

 

4. When taking a tax credit, always send documentation.  Don't assume that -- because a credit has been taken before or there is a carry-forward credit -- the credit on the current year filing will be accepted.  Don't forget to claim and keep records of carry-forward credit from prior years.  Send appropriate documentation with the return for those carry-forward credits.

 

5. Related to tax credits, fill out completely the form that corresponds to the credit.  For example, capital gains subtractions are delayed/denied because the property description is too vague or missing, the payroll/property percent is not included for stock sales, and/or the acquisition date is omitted.

 

6. Don't file more than one return for the same tax year.  If changes or corrections to a return that has already been filed are necessary, USE AN AMENDED RETURN (104X) FOR THAT SPECIFIC YEAR.  Each return has different lines from year to year.  Using the correct corresponding year is important to ensure smooth processing.

 

7. Again, review FYI tax publications carefully.  It's especially important to know what subtractions from federal income can be taken on the Colorado return.

 

8. Injured spouse claims should be mailed to the department separate from the returns.  If injured spouse claims are mailed in with the return, they will likely be missed in processing.  Please send all injured spouse claims to: Injured Spouse Desk, Room 238, 1375 Sherman Street, Denver, CO 80261.

 

9. Electronic and paper filings have different requirements.  If you are filing electronically and you are claiming tax credits, fill in as much information as possible in the space provided.  Do not send in supporting documentation after filing electronically unless the department requests the documentation. DO NOT send a duplicate paper return.  A duplicate return will significantly delay refund processing. Meanwhile, with a paper return, sending documentation with the original paper return could save review time because the department won't need to ask for copies

 

10.  Attach the 104CR credit schedule form to the part-year/nonresident (104PN) form when taking credit for taxes paid to another state.   Be sure to complete and send both the 104PN and the 104CR, and send copies of returns filed with other states as documentation.

 

11. Child Care Contribution (Donation) Credit.  Only 50 percent of the qualifying donation may be claimed as a credit on the return.  If a paper return is filed, Colorado form DR 1317 must be attached to the individual income tax return. Electronic filers may be asked to provide the DR 1317 upon request.  Donation confirmation letters alone will not fulfill the documentation requirement.

 

12.  Alternative Fuel Tax Credit.  Attach a copy of the bill of sale showing the vehicle is registered in the primary income tax filer's or spouse's name.  Only vehicles listed in publication FYI Income 9 are eligible for the credit.

 

  • E-85 vehicles are NOT eligible for the credit. 
  • The credit must be claimed in the tax year that it was purchased (if purchased in 2008, must claim it on 2008 tax return). 
  • If there is a $0 tax liability for that year, the credit may be carried forward to the next tax year. 
  • The credit must be applied to the earliest year possible.