Thank you for your service!
For Colorado residents who join the military, you may be wondering what your filing requirements are.
This page will provide you with information to know about your tax responsibilities while serving in the United States military.
Knowing your residency status is the first step. Use this information to determine which military status applies to you and use the links to know how to file your Colorado state income tax.
Resident Service Member:
A service person who is a Colorado full-year resident is taxed in the same manner as any other Colorado resident. Colorado resident service members are:
those who are Colorado residents when they enter the service or
those who are from another state and who choose to become Colorado residents
Nonresident Service Member:
A nonresident service member is not required to report his/her military income to Colorado. However, if the service member earned nonmilitary Colorado income, this income must be reported to Colorado for income tax purposes.
Examples of nonmilitary Colorado income include:
Nonmilitary Colorado salaries, wages, and tips
Nonmilitary Colorado commissions
Income from a Colorado business, income from rents, royalties and/or gains from the sale of tangible personal property or real property located in Colorado
Service Member Serving In a Combat Zone
Active duty pay earned in a combat zone that qualifies for the federal tax exemption is not subject to Colorado income tax. However, to the extent income is included in federal taxable income; Colorado tax will also be due on the income.
Colorado law allows military and support personnel stationed in a combat zone, as declared by the President, to postpone filing and paying state income taxes until 180 days after their assignment in the combat zone ends. Interest and penalty are deferred during this period.
Because Colorado taxpayers may receive a refund, affected taxpayers may want to plan ahead to authorize someone else to file their income tax return for them using a Power of Attorney Form (DR 0145). If the return is filed under this 180 day extension, write the name of the applicable combat zone across the top of the Colorado Form 104.
Military Serving Outside of the U.S. for 305 Days or More:
A service member who is a full-year Colorado resident who spends at least 305 days of the tax year outside of the 50-state boundary of the United States while stationed outside of the United States for active military duty may file as a nonresident on the Colorado income tax return.
The service member’s spouse may also file as a nonresident if the spouse accompanies the service member outside of the country for at least 305 days of the tax year while they are stationed there on active military duty.
Military Resources to Answer Your Tax Questions:
Contact the Legal Assistant’s office at the base where you are stationed.
Every state and situation is different. They know the answers to your specific tax questions.
MILTAX Tax Service for the Military
Colorado state and IRS resources:
CDOR Military Service Members – Special Filing Information
Income Tax - Military Service Members