Form DR0104AD "Subtractions From Income Schedule" - Colorado

What Is Form DR 0104AD?

Form DR 0104AD, Subtractions From Income Schedule, is an application developed by the Colorado Department of Revenue. The form is to be used to report subtractions from Federal Taxable Income.

The application was last revised on August 14, 2020. A Colorado DR 0104AD version is available for download below. The form is supposed to be submitted along with Form DR 0104, Individual Income Tax Return, if the taxpayer is claiming any subtractions on their Federal Taxable Income.

ADVERTISEMENT

Form DR 0104AD Instructions

Colorado Tax Form DR 0104AD can be divided into two major parts:

  1. Personal Information. In this part of the form, the applicant is supposed to enter their full name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). This type of information is required for identification purposes;
  2. Subtractions. The biggest section of the application consists of 20 statements that are supposed to be filled out by the applicant. Here, the applicant is supposed to enter different kinds of information, such as (but not limited to):
    • State Income Tax Refund from Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors. To complete this line the applicant is supposed to refer to their federal income tax return;
    • U.S. Government Interest. The applicant can use this line to enter the sum of all interest earned from U.S. government bonds, treasury bills and other obligations of the U.S. that were reported on their federal income tax return;
    • Qualifying Charitable Contribution. Applicants who make charitable contributions that would be eligible for a federal income tax deduction might be eligible to deduct a portion of their contribution;
    • Qualified Reservation Income. In this line, the applicant should indicate any amount of income that was received from reservation sources by an enrolled tribal member who lives on the reservation, which was included as taxable income;
    • Railroad Benefit. This line is a place for the applicant to list any railroad retirement benefits that they reported on your federal income tax return. It is supposed to be calculated as part of your federal taxable income;
    • Colorado Capital Gain Subtraction. A filer might be eligible to subtract some or all of the capital gain included in their federal taxable income if the gain is derived from the sale of tangible personal property or from the sale of real property located in Colorado;
    • CollegeInvest Contribution. Contributions to CollegeInvest can be deducted from the applicant's tax return. The contribution must have been included on their federal income tax return and calculated as part of their federal taxable income;
    • Colorado Marijuana Business Deduction. Marijuana businesses with a license issued in Colorado can use this line to list any expenses that are eligible to be claimed as a federal income tax deduction but is disallowed by the Internal Revenue Code (because marijuana is a controlled substance under federal law);
    • First Time Home Buyer Savings Account Interest Deduction. If the applicant is claiming this kind of a deduction, they must complete Form DR 0350, First-time Home Buyer Savings Account Interest Deduction, and submit it with their return;
    • Subtotal. In the last line, the applicant is supposed to enter the sum of lines one through 19.
ADVERTISEMENT

Download Form DR0104AD "Subtractions From Income Schedule" - Colorado

Download PDF

Fill PDF online

Rate (4.5 / 5) 68 votes
Page background image
Page 1
Line-by-Line Instructions for the
Line 4
Spouse Pension and
DR 0104AD - Subtractions from
Annuity Subtraction
Income Schedule
If the secondary taxpayer listed on a jointly filed return is
eligible for the pension and annuity subtraction, enter the
If you use this schedule to claim any subtractions from
qualifying amount on this line. Review the instructions for line
your income, you must submit it with the DR 0104.
3 to see what amount qualifies. We recommend that you read
Line 1
State Income Tax Refund
publication FYI Income 25 if this applies to you.
Refer to your federal income tax return to complete
Take precautions to report the subtraction on the
this line. If you did not complete federal Schedule 1,
correct line. The first person listed on the return
Form 1040 or 1040SR, enter $0. Otherwise, enter the amount
shall report on line 3 and the second person listed
from line 1, Schedule 1, Form 1040 or 1040SR.
shall report on line 4.
Line 2
U.S. Government Interest
Line 5
Military Retirement Subtraction
Enter the sum of all interest earned from U.S. government
You might be eligible to subtract the income you earned
bonds, treasury bills and other obligations of the U.S. or its
from your military retirement benefits. We recommend
territories, possessions and agencies that you reported on
that you read publication FYI Income 25 if this applies
your federal income tax return and is calculated as part of
to you. This subtraction is allowed only for military
your federal taxable income. We recommend that you read the
retirement income that is included in your federal taxable
Individual & Corporate Income Tax Guides if this applies to you.
income. To qualify, you must have been 54 years of age
or younger as of December 31,2020. If you meet the
Do not include interest earned from Federal National
age requirement, then you are entitled to subtract $7,500
Mortgage Association and Government National
or the total amount of your taxable military retirement
Mortgage Association (Fannie Mae and Ginnie Mae).
benefits, whichever is smaller.
Dividends from mutual funds may not be 100% exempt.
Military retirement benefits should not be intermingled
Line 3
Pension and Annuity
between spouses. Each spouse must meet the
Subtraction
requirements for the subtraction separately and
You might be eligible to subtract the income you earned from a
claim the subtraction only on their military retirement
pension or annuity. We recommend that you read publication
benefits. Any qualifying spouse military retirement
FYI Income 25 if this applies to you. This subtraction is
benefits should be reported on line 6.
allowed only for pension or annuity income that is included
Submit copies of all 1099R statements with your
in your federal taxable income. The amount of subtraction
return. Submit as attachments when e-filing
you can claim is also limited based upon your age.
or using Revenue online, or include with your
As of December 31, 2020, if you were:
paper return.
• Age 65 or older, then you are entitled to subtract
Line 6
Spouse Military Retirement
$24,000 or the total amount of your taxable
Subtraction
pension/annuity income, whichever is smaller; or
If the secondary taxpayer listed on a jointly filed return is
• At least 55 years old, but not yet 65, then
eligible for the military retirement subtraction, enter the
you are entitled to subtract $20,000 or the
qualifying amount on this line. Review the instructions for
total amount of your taxable pension/annuity
line 5 to see what amount qualifies. We recommend that you
income, whichever is smaller; or
read publication FYI Income 25 if this applies to you.
• Younger than 55 years old and you received
Take precautions to report the subtraction on the
pension/annuity income as a secondary
correct line. The first person listed on the return
beneficiary (widow, dependent child, etc.)
must report on line 5 and the second person listed
due to the death of the person who earned
must report on line 6.
the pension/annuity, then you are entitled to
subtract $20,000 or the total amount of your
Line 7
Colorado Capital Gain
secondary beneficiary taxable pension/annuity
Subtraction
income, whichever is smaller. If this applies
You might be eligible to subtract some or all of the capital
to you, please list the Social Security number
gain included in your federal taxable income, if the gain is
of the deceased in the space provided.
derived from the sale of tangible personal property or from
Pension/annuity income should not be intermingled
the sale of real property located in Colorado. The amount of
between spouses. Each spouse must meet the
this subtraction is limited to $100,000. We recommend that
requirements for the subtraction separately and
you read publication FYI Income 15 if this applies to you.
claim the subtraction only on their pension/annuity
You must complete and submit the DR 1316 with
income. Any qualifying spouse pension/annuity
your return. Take precaution to completely fill out
income should be reported on line 4.
each item of this form. Be as detailed as possible,
Submit copies of all 1099R and SSA-1099
especially when providing property descriptions,
statements with your return. Submit using
ownership, and dates of acquisition and sale.
Revenue Online or include with your paper return.
Page 1
Line-by-Line Instructions for the
Line 4
Spouse Pension and
DR 0104AD - Subtractions from
Annuity Subtraction
Income Schedule
If the secondary taxpayer listed on a jointly filed return is
eligible for the pension and annuity subtraction, enter the
If you use this schedule to claim any subtractions from
qualifying amount on this line. Review the instructions for line
your income, you must submit it with the DR 0104.
3 to see what amount qualifies. We recommend that you read
Line 1
State Income Tax Refund
publication FYI Income 25 if this applies to you.
Refer to your federal income tax return to complete
Take precautions to report the subtraction on the
this line. If you did not complete federal Schedule 1,
correct line. The first person listed on the return
Form 1040 or 1040SR, enter $0. Otherwise, enter the amount
shall report on line 3 and the second person listed
from line 1, Schedule 1, Form 1040 or 1040SR.
shall report on line 4.
Line 2
U.S. Government Interest
Line 5
Military Retirement Subtraction
Enter the sum of all interest earned from U.S. government
You might be eligible to subtract the income you earned
bonds, treasury bills and other obligations of the U.S. or its
from your military retirement benefits. We recommend
territories, possessions and agencies that you reported on
that you read publication FYI Income 25 if this applies
your federal income tax return and is calculated as part of
to you. This subtraction is allowed only for military
your federal taxable income. We recommend that you read the
retirement income that is included in your federal taxable
Individual & Corporate Income Tax Guides if this applies to you.
income. To qualify, you must have been 54 years of age
or younger as of December 31,2020. If you meet the
Do not include interest earned from Federal National
age requirement, then you are entitled to subtract $7,500
Mortgage Association and Government National
or the total amount of your taxable military retirement
Mortgage Association (Fannie Mae and Ginnie Mae).
benefits, whichever is smaller.
Dividends from mutual funds may not be 100% exempt.
Military retirement benefits should not be intermingled
Line 3
Pension and Annuity
between spouses. Each spouse must meet the
Subtraction
requirements for the subtraction separately and
You might be eligible to subtract the income you earned from a
claim the subtraction only on their military retirement
pension or annuity. We recommend that you read publication
benefits. Any qualifying spouse military retirement
FYI Income 25 if this applies to you. This subtraction is
benefits should be reported on line 6.
allowed only for pension or annuity income that is included
Submit copies of all 1099R statements with your
in your federal taxable income. The amount of subtraction
return. Submit as attachments when e-filing
you can claim is also limited based upon your age.
or using Revenue online, or include with your
As of December 31, 2020, if you were:
paper return.
• Age 65 or older, then you are entitled to subtract
Line 6
Spouse Military Retirement
$24,000 or the total amount of your taxable
Subtraction
pension/annuity income, whichever is smaller; or
If the secondary taxpayer listed on a jointly filed return is
• At least 55 years old, but not yet 65, then
eligible for the military retirement subtraction, enter the
you are entitled to subtract $20,000 or the
qualifying amount on this line. Review the instructions for
total amount of your taxable pension/annuity
line 5 to see what amount qualifies. We recommend that you
income, whichever is smaller; or
read publication FYI Income 25 if this applies to you.
• Younger than 55 years old and you received
Take precautions to report the subtraction on the
pension/annuity income as a secondary
correct line. The first person listed on the return
beneficiary (widow, dependent child, etc.)
must report on line 5 and the second person listed
due to the death of the person who earned
must report on line 6.
the pension/annuity, then you are entitled to
subtract $20,000 or the total amount of your
Line 7
Colorado Capital Gain
secondary beneficiary taxable pension/annuity
Subtraction
income, whichever is smaller. If this applies
You might be eligible to subtract some or all of the capital
to you, please list the Social Security number
gain included in your federal taxable income, if the gain is
of the deceased in the space provided.
derived from the sale of tangible personal property or from
Pension/annuity income should not be intermingled
the sale of real property located in Colorado. The amount of
between spouses. Each spouse must meet the
this subtraction is limited to $100,000. We recommend that
requirements for the subtraction separately and
you read publication FYI Income 15 if this applies to you.
claim the subtraction only on their pension/annuity
You must complete and submit the DR 1316 with
income. Any qualifying spouse pension/annuity
your return. Take precaution to completely fill out
income should be reported on line 4.
each item of this form. Be as detailed as possible,
Submit copies of all 1099R and SSA-1099
especially when providing property descriptions,
statements with your return. Submit using
ownership, and dates of acquisition and sale.
Revenue Online or include with your paper return.
Page 2
Line 8
CollegeInvest Contribution
Line 10
Qualified Reservation Income
List any amount of income that was derived wholly from
Contributions to CollegeInvest can be deducted from your
reservation sources by an enrolled tribal member who lives
return. The contribution must have been included on your
on the reservation, which was included as taxable income on
federal income tax return and calculated as part of your
the Federal income tax form.
federal taxable income. We recommend that you read
publication FYI Income 44 if this applies to you.
Submit proof of tribal membership, residence, and
source of income. This must be submitted every
The three fields on line 8 should be left blank if the
three years by taxpayers claiming this subtraction.
taxpayer and/or spouse are the CollegeInvest account
owners who set up the account for the student
Line 11
PERA/DPSRS Subtraction
beneficiary. If you are not the account owner (e.g.
If you made contributions to PERA between July 1, 1984, and
grandparent, friend), complete the three additional
December 31, 1986, or to Denver Public Schools District No. 1
fields. To report contributions to more than one
Retirement during 1986 and your 2020 federal taxable income
account, you must file electronically. Do not deduct
includes pension income, see FYI Income 16 to determine if
contributions made to a tuition savings plan for another
you can take a subtraction for any of your pension income.
state or any tuition you paid while attending school.
Submit a copy of your previously taxed contribution.
Do NOT deduct contributions made by your employer/
PERA statements can be obtained from
business to your College Invest account on this line. To
Copera.org or by calling 1-800-759-7372. Submit
claim pass-through credits for employer contributions
using Revenue Online or include with your
to employee 529 qualified state tuition account, please
paper return.
refer to the instructions on form DR0289 and report the
Do not list the amount of contributions you made as
credit on applicable credit schedule.
an employee this past year.
Line 9
Qualifying Charitable Contributions
Line 12
Railroad Benefit
Taxpayers who make charitable contributions that would be
eligible for a federal income tax deduction, but do not claim
List any railroad retirement benefits that you reported on
federal itemized deductions on Schedule A of form 1040 or
your federal income tax return and is calculated as part of
1040SR, might be eligible to deduct a portion of their contribution
your federal taxable income. We recommend that you read
on this form. We recommend that you read publication FYI
publication FYI Income 25 if this applies to you.
Income 48 if this applies to you. Use the worksheet on the next
Submit copies of all RRB-1099 and RRB-1099R
page to determine your qualifying contribution.
Statements. Submit using Revenue Online or submit
with your paper return.
(a) Did you itemize your deductions on Schedule
A of federal form 1040 or 1040SR?
Yes
No
Line 13
Wildfire Mitigation Measures
Enter the amount incurred in per forming wildfire
(b) Did you deduct charitable contributions on
the federal form?
Yes
No
mitigation on your land, up to $2,500. We recommend that
you read publication FYI Income 65 to properly calculate
If you answered Yes on either (a) or (b) above, enter $0 on line 9;
this subtraction.
you do not qualify for this subtraction. If you answered No on both
(a) and (b) above, continue below.
Submit copies of receipts for qualified costs for wildfire
mitigation for your property. Submit using Revenue
(c) Enter the amount you could have deducted
as charitable contributions on lines 11 and
Online or submit with your paper return.
12 of federal Schedule A.
$
Line 14
Colorado Marijuana Business Deduction
(d) Colorado adjustment
$500
For Colorado-licensed marijuana businesses, list any
(e) Subtract line (d) from line (c). This is the
expenditure that is eligible to be claimed as a federal income
qualifying amount. If the amount is greater
tax deduction but is disallowed by section 280E of the Internal
than $0, transfer to line 9.
Revenue Code because marijuana is a controlled substance
under federal law.
Enter the total contributions in the space provided and the
subtraction after the $500 adjustment on line 9.
To calculate this deduction, you must create pro forma
federal schedule(s) for Business Profit or Loss as if the
Do not enter an amount on this line if you already
federal government would have allowed the expenditures
deducted your charitable donation on Schedule A of
from the marijuana business. The Colorado deduction shall
the federal 1040 or 1040SR form. Otherwise, you
be the difference between the profit/loss as calculated on the
will be issued an assessment that will likely include
ACTUAL schedule(s) filed with the federal return and the pro
penalty and interest.
forma schedule(s) described above.
For claims greater than $5,000, submit the receipts
you received at the time of donation. For in-kind
You must submit the pro forma schedule(s), the MED
donations, submit an itemized list of the donated items
license number and the actual federal schedule(s)
and their fair market value. Submit using Revenue
with your Colorado return when claiming this
Online or include with your paper return. Do not send
deduction. Submit using Revenue Online or submit
receipts of items that were purchased for donation.
with your paper return.
Page 3
Line 15
Nonresident Disaster Relief
Line 17
Agricultural Asset Lease Deduction
Enter the certificate number (YY-###) for the deduction
Worker Subtraction
certificate that was provided by the Colorado Agricultural
For nonresident individuals, enter the amount of compensation
Development Authority (CADA). If you received more than
earned for performing disaster-related work in the state
one certificate you must file electronically. Enter the amount
during a declared state disaster emergency and for the 60
of the deduction on this line. The amount of deduction allowed
days thereafter. Disaster-related work includes repairing,
to a qualified taxpayer may not exceed $25,000. You must
renovating, installing, building, or rendering services that
submit a copy of each certificate with your return.
relate to infrastructure that has been damaged, impaired,
or destroyed by a declared state disaster emergency or
Line 18
First-time Home Buyer Savings
providing emergency medical, firefighting, law enforcement,
Account Interest Deduction
hazardous material, search and rescue, or other emergency
You must complete the DR 0350 and submit with your return if
service related to a state declared disaster emergency.
you are claiming this deduction. You may only deduct the amount
This subtraction is only available to nonresident
of taxable interest and/or earnings on the qualified account in the
individuals. If you are a full-year resident of
tax year claimed. This deduction is subject to recapture.
Colorado, you are not eligible for this subtraction.
Line 19
Other Subtractions from Federal
Line 16
Reacquisition of Colorado
Taxable Income
Residency During Active Duty Military Service
Enter the sum of all other allowable subtractions. For more
Subtraction
information about what to enter on this line, see the Income
This subtraction is only allowed to military servicepersons who
Tax – Subtractions page on Tax.Colorado.gov.
meet several requirements. In order to qualify for the subtraction
Do not include amounts that were earned outside
the serviceperson must (1) have Colorado as his or her home
Colorado, net operating losses, K-1 adjustments,
of record, (2) after enlisting in the military, have acquired legal
military income, wage adjustments, repayments
residency in a state other than Colorado, and (3) on or after
for which IRC section 1341 credits were claimed,
January 1, 2016, have reacquired Colorado residency. A
or donations made to the Military Family Relief
military serviceperson who meets these three requirements
Fund on this line. Include a clear explanation of the
can claim a subtraction for any compensation included in his
subtraction being claimed on your return.
or her federal taxable income that he or she received for active
Line 20
Subtotal
duty service after reacquiring Colorado residency.
Enter the sum of lines 1 through 19.
In order to have acquired residency in another state, you must have:
1. been physically present in that state,
2. intended
to
make
that
state
your
permanent home, and
3. intended to abandon your previous state of
legal residence.
In order to reacquire residency in Colorado, you need not be
physically present in Colorado, but you must intend to both
make Colorado your permanent home and to abandon your
previous state of legal residence.
In order to claim this subtraction, a taxpayer must include with
his or her return: (1) a military form showing Colorado as his
or her home of record, (2) evidence of acquiring residency in
another state, and (3) evidence of reacquiring residency in
Colorado during the tax year. Evidence of acquiring residency
in another state and reacquiring residency in Colorado must
come in one of the following forms:
1. voter registration;
2. records reflecting the purchase of residential
property or an unimproved residential lot;
3. motor vehicle titling and registration;
4. notification to your prior state of legal residence
of your intention to change your state of
legal residence;
5. preparation of a new last will and testament
reflecting your state of legal residence.
If you qualify for this subtraction, enter the amount of
compensation received for active duty military service on line 16
and submit all required evidence of residency with your return.
*200104AD19999*
DR 0104AD (08/14/20)
COLORADO DEPARTMENT OF REVENUE
Tax.Colorado.gov
Page 1 of 2
2020 DR 0104AD – Subtractions from Income Schedule
If claiming a subtraction and filing by paper, you must submit this schedule with your return.
Use this schedule to report any subtractions from your Federal Taxable Income. These subtractions will change your
Colorado Taxable Income from the amount of Federal Taxable Income. See instructions in the income tax booklet for
additional guidance on completing this schedule. Do not enter negative amounts. You must submit this form along with
the DR 0104 if claiming any subtractions.
Name
SSN or ITIN
Subtractions from Federal Taxable Income
1. State Income Tax Refund from federal income tax form 1040 or 1040 SR,
0 0
Schedule 1 line 1.
1
0 0
2. U.S. Government Interest
2
3. Primary Taxpayer Pension, Annuity, IRA,
Deceased SSN or ITIN
Social Security, or Disability Income
0 0
(see instructions)
3
4. Spouse Pension, Annuity, IRA, Social
Deceased SSN or ITIN
Security, or Disability Income
0 0
(see instructions)
4
5. Primary Taxpayer Military Retirement Benefits (under age 55), you must submit
0 0
copies of all 1099R statements with your return. (see instructions)
5
6. Spouse Military Retirement Benefits (under age 55), you must submit copies of all
1099R statements with your return. (see instructions)
6
0 0
7. Colorado Capital Gain Subtraction
7
0 0
Owner’s SSN or ITIN
8. CollegeInvest Contribution:
0 0
(see instructions)
8
Total Contribution
Owner’s Name
Total Contribution
0 0
9. Qualifying Charitable Contribution
$
9
10. Qualified Reservation Income
10
0 0
11. PERA/DPSRS Subtraction, for PERA contributions made in 1984–1986 or
0 0
DPSRS contributions made in 1986
11
DR 0104AD (08/14/20)
*200104AD29999*
COLORADO DEPARTMENT OF REVENUE
Tax.Colorado.gov
Page 2 of 2
Name
SSN or ITIN
0 0
12. Railroad Benefit Subtraction
12
0 0
13. Wildfire Mitigation Measures Subtraction
13
14. Colorado Marijuana Business Deduction
14
0 0
0 0
15. Non-Resident Disaster Relief Worker Subtraction
15
16. Reacquisition of Colorado Residency During Active
Duty Military Service Subtraction
16
0 0
17. Agricultural Asset Lease Deduction.
CADA Certificate Number
Enter CADA certificate number and submit
a copy of your certificate with your return
17
0 0
18. First Time Home Buyer Savings Account Interest Deduction, you must submit
0 0
form DR 0350(s) with your return
18
19. Other Subtractions, explain below
19
0 0
Explain
20. Subtotal, sum of lines 1 through 19, transfer the amount to line 8
0 0
on the DR 0104
20
Page of 5