Expands Colorado income tax deduction for retirement benefits, removing caps for individuals aged 55 and older.

The bill modifies Colorado's income tax law to expand the deduction for retirement benefits. For income tax years starting after January 1, 2027, it removes all caps on the deduction for individuals aged 55 and older, allowing them to subtract the total amount of pension or annuity benefits from their federal taxable income when calculating their state taxable income. This change applies to pensions and annuities from any source, including social security benefits, private annuities, and distributions from retirement plans.

Expands Colorado income tax deduction for retirement benefits, removing caps for individuals aged 55 and older.

The bill modifies Colorado's income tax law to expand the deduction for retirement benefits. For income tax years starting after January 1, 2027, it removes all caps on the deduction for individuals aged 55 and older, allowing them to subtract the total amount of pension or annuity benefits from their federal taxable income when calculating their state taxable income. This change applies to pensions and annuities from any source, including social security benefits, private annuities, and distributions from retirement plans.