Why the Colorado Springs Tax Exemption is Not Enough to Save You from Taxes

Colorado Springs, CO—(BUSINESS WIRE)—The Colorado Springs Municipal Tax Exemptions Program (MTEP) has a special offer for people who live in Denver, CO.

The program is called the Colorado Residency Tax Exclusion (CRE), and it has a $10,000 annual limit for each of the 50 states. 

This is an annual maximum exemption amount that does not include a state tax. 

According to the IRS, there are three reasons to qualify for this tax exemption: (1) You live in the state of Colorado; (2) You are married to someone who lives in Colorado; and (3) You work as a contractor or as a temporary employee for a non-profit organization. 

However, the Colorado State Tax Examiners Office (STO) has stated that it will not issue an exemption for non-residential real estate income from the state if you are married in the Colorado state to a Colorado resident. 

In order to qualify, you must file a joint income tax return, provide a tax credit to the county in which you reside, and file a state income tax form. 

You can find the current list of counties that do not issue tax exemptions for nonresidential property at the Colorado Tax and Fiscal Affairs website. 

The Colorado Residencies Tax Exclusions Program does not have a deadline to file a return or submit an income tax application. 

If you qualify, this exemption will automatically apply to all taxable real estate in the State of Colorado. 

But remember, this tax exclusion is not enough to save you from paying taxes. 

Under the COSTA, your property must be taxed in the same manner as residential property in the county where you live. 

Therefore, if you live in a county that does tax residential property, you will not qualify for the Colorado Tax Excess Tax Credit. 

Additionally, your personal property is exempt from taxes if you file a separate return for residential property. 

To get the tax credit, you have to be eligible for the COBRA or the COE. 

Once you file your return, you can apply for the credit by filing a separate state income taxes return. 

(2) Your Colorado residency has been revoked or suspended. 

 If your Colorado residency is revoked or has been suspended due to criminal activity, you are not eligible for this exemption. 

Also, if your Colorado residence is revoked due to a change in address, you do not qualify. 

It is important to note that if you apply for a COBSA exemption and your Colorado state residency is reinstated or suspended, you may not qualify under this exemption as long as your Colorado Colorado residency remains active. 

There are two ways to apply for this credit. 

1.

You must complete an application for a refund or credit.

You can do this by completing Form W-9 (Form W-8) for Tax Exceptions and Rebates and submitting the form online to the Tax Exam Board. 

Your tax refund or refund credit application can be found here. 

2.

You may have to pay a fee for filing your tax return online. 

Submit Form W3 to the tax return office. 

Form W3 is not a form that the IRS will issue a credit for, but it can be used to provide a credit.

You can also complete the online Form W9, which is a similar application, but you will need to submit a $50 application fee to the agency. 

For more information, visit the Colorado Residency Taxexemption Program website.

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