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cbmontgo
01-03-2009, 09:42 PM
Since I am relatively new to living in Colorado...how does this state compare to other states as far as taxation goes? Is the state income tax a simple tax across the board or are there additional "penalties" to folks who are in different earnings brackets? I did some reading online and could not find any real tax "brackets" for Colorado; just the 4.6% state income tax.

Also, I have used a CPA in another state for a long time. Do I need to get a Colorado CPA this year or can an "out-of-stater" CPA figure out how to file my taxes here?

Romer
01-03-2009, 11:28 PM
Tax is across the board and easy to figure out. Taxcut or Turbotax is all I use to do my taxes. Even used it when my wife was self employed. Even if you get a CPA this year, as an expirement, try using taxcut and see how the CPA does. Before these software packages, my wife wanted me to use my father-in laws CPA to do our taxes when we got married even though I had been doing them myself. I let the CPA do it and filled out my own taxes and came up with a lower tax bill. I then showed my calculations to the CPA who said they screwed up and should have come up with the numbers I did. My wife never asked me to use a CPA again.

Not saying you shouldn't use a CPA. If your situation is complicated or you have a business, rentals, etc it would make sense as these issues can be complex.

Do your federal first and then the Colorado is easy. You can even file your state income tax on line. For next year, if you have kids look into the Colodaro 529 plan. You get to take your contributions off your state income so you make 4.6% just contributing to the fund.

cbmontgo
01-04-2009, 09:16 AM
Thanks, Romer. I am glad to hear this.