Reacquisition of Colorado residency by military servicemember

Under certain circumstances, a military servicemember who is a Colorado resident can claim a subtraction for any compensation they receive for active duty military service that is included in their federal taxable income. The subtraction is not allowed for any other type of income the servicemember may receive during the tax year.

A servicemember may qualify for this subtraction only if:

the servicemember’s home of record is Colorado;

while in the military, the servicemember acquired legal residence in a state other than Colorado; and

the servicemember subsequently reacquired Colorado residency.

A servicemember claiming this subtraction must provide documentation substantiating their changes of residency. For additional information, please see Department publication Income Tax Topics: Military Servicemembers . Capital gain subtraction Qualifying taxpayers can claim a subtraction for certain qualifying capital gain income included in their federal taxable income. For additional information, please see Department publication Income Tax Topics: Colorado Capital Gain Subtraction .