We prepare Colorado state tax returns for individuals as well as corporations. Generally speaking the State Tax Return is a byproduct of the Federal Tax Return. The state tax return preparation begins with a completed Federal tax return due to the way the State of Colorado’s tax form works. The Federal Taxable Income is the starting place for preparing the Colorado return. After entering the Federal Taxable Income on the State return the Colorado form has additions and adjustments for determining what the State Of Colorado Taxable Income should be. It is NOT possible to prepare a Colorado State Tax Return without first determining the Federal Taxable Income.
Multi State Tax Returns are much more involved as each state has a different method of calculating the taxable income as well as how they give credit for amounts paid to other states. Even in Colorado, the calculation is much different depending upon whether the individual has moved to Colorado or if the person is simply an out of state resident that has Colorado Income. If you have multiple state tax returns that are required to be filed the process is much more involved.
Generally the Colorado State Return is not an additional fee if we prepare the Federal Income Tax Return and there is only a Colorado State Return that is required. However, we do charge additional if there are two states involved (even if the second state doesn’t have a filing requirement – as the Colorado return will have to address the income from the additional state).
We always quote the fee in advance, so if there is an additional fee for the state return, you will be notified before the work is done. We believe no one should be surprised by any work performed or the fees involved. We quote for all work in advance and in writing.