Overtime compensation deduction addback

For tax years 2026 and later, an individual who claims a deduction for overtime compensation on their federal income tax return must add back the amount of the deduction on their Colorado return. The addback is required for the full amount of the federal deduction claimed on the taxpayer’s IRS Schedule 1-A (Form 1040).

No addback is required on the taxpayer’s Colorado return for any deduction claimed on their federal return for qualified tips.