Deductions for state taxes paid

An individual who claims an itemized deduction on their federal income tax return for state income tax must add back on their Colorado returns the amount of state income tax deducted, subject to certain limitations. Individuals must add back the state income taxes they deduct, regardless of whether the state income taxes were paid to Colorado or to another state. A state income tax addback is also required for any partner or shareholder in a partnership or S corporation that claims a federal deduction for state income taxes. For additional information, please see Department publication Income Tax Topics: State Income Tax Addback .