Social Security benefits in Colorado
Varies
Is Social Security Taxed in Colorado?
Short answer: Partly. Taxpayers 65 and older can subtract all federally taxable Social Security. Those aged 55 to 64 can subtract all of it if AGI is $75,000 or less (single) or $95,000 or less (joint); otherwise their subtraction is capped at $20,000. The $20,000 cap for ages 55-64 is shared with pension and annuity income. Under age 55 there is generally no Social Security subtraction, except for beneficiaries receiving benefits because of a death. The 55-64 full subtraction took effect in tax year 2025 (HB24-1142) and applies in 2026.
Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Social Security benefits in Colorado
Varies
Individuals / Personal Taxes
Partly. Taxpayers 65 and older can subtract all federally taxable Social Security. Those aged 55 to 64 can subtract all of it if AGI is $75,000 or less (single) or $95,000 or less (joint); otherwise their subtraction is capped at $20,000. The $20,000 cap for ages 55-64 is shared with pension and annuity income. Under age 55 there is generally no Social Security subtraction, except for beneficiaries receiving benefits because of a death. The 55-64 full subtraction took effect in tax year 2025 (HB24-1142) and applies in 2026.
Business justification
Partly. Taxpayers 65 and older can subtract all federally taxable Social Security. Those aged 55 to 64 can subtract all of it if AGI is $75,000 or less (single) or $95,000 or less (joint); otherwise their subtraction is capped at $20,000. The $20,000 cap for ages 55-64 is shared with pension and annuity income. Under age 55 there is generally no Social Security subtraction, except for beneficiaries receiving benefits because of a death. The 55-64 full subtraction took effect in tax year 2025 (HB24-1142) and applies in 2026. Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Category
- Personal Tax Deductions