Colorado Tax Law Changes – Already Passed – To Keep in Mind in 2022 and Beyond
November 3, 2021
While much attention is dedicated to proposals to increase federal taxation, it is important for Colorado residents (and those filing Colorado state tax returns) to understand tax law changes already on the books – fully passed and signed by the governor of Colorado in 2021 – that will apply in 2022 and going forward. The new Colorado state tax law bills, HB 1311, and HB 1312, signed into law in June 2021, will undoubtedly impact clients submitting Colorado state tax returns in 2022 and beyond. Impact of these bills (see table below for additional details): Amount of Itemized Deductions you can apply to your Colorado State Income Tax Return Amount of Pass-Through Deductions business owners can apply to their Colorado State Income Tax Return A limit on deductions for 529 Plan Contributions The elimination of Qualified Capital Gain Exclusions (for all but Agricultural Property) The elimination of State Taxes on Social Security Income Colorado’s New Tax Laws (signed into law June 2021) This alert is not meant to be a detailed explanation or analysis of these tax law changes impacting our Colorado clients and friends, but rather a quick notice and summary. Tax planning involving each state a client files […]
