Colorado State Tax Extension: A Detailed Guide

Tax season is stressful, especially when you're running around gathering all the papers.

The good news is that filing a Colorado extension gives you time to get everything together without the late filing penalty.

Whether you're waiting on documents or need some space, this will walk you through the steps to file an extension in Colorado and avoid the surprise.

Ready? Go!

Colorado Extension Requirements

An extension gives you time to file your state return without penalties. It doesn't extend the payment deadline.

For Coloradans, you must pay at least 70% for Coloradans by April 15th to avoid a late payment penalty.

You don't need to file a separate Colorado extension if you've filed an IRS federal extension (Form 4868) and meet the payment requirements.

Otherwise, you must file Form DR 0158-I to get your extension.

Important Colorado Extension Deadlines

When is the deadline for Filing a tax extension in Colorado?

The deadline to file for an extension in Colorado is the same as the original tax filing deadline: April 15th.

Do I need to file a separate tax extension for Colorado if I have already filed a federal one?

Suppose you've already filed for a federal extension (using IRS Form 4868) and have paid at least 70% of your Colorado tax liability. In that case, you do not need to file a separate Colorado tax extension form. However, if you have not met these criteria, you must file Form DR 0158-I with the Colorado Department of Revenue.

When is my new deadline for filing a tax extension for Colorado?

If your extension is approved, your new deadline will be October 15th, giving you six months to gather all necessary documents and file your return.

How to Request an Income Tax Extension in Colorado

How Do I File a Colorado Tax Extension?

Follow these simple steps to request a tax extension in Colorado:

• • Mail: Send your form and payment to:
  • Online: Ensure your online submission is completed by 11:59 p.m. on April 15th.
  • Colorado Department of Revenue Denver, CO 80261-0008 (No street address required)
• Save a Copy: Keep a copy of your form and payment confirmation for your records.

FAQs

Do I Need to Pay My Colorado Taxes When I File a Tax Extension?

Yes, to avoid penalties, at least 70% of your taxes must be paid by the original due date (April 15th).

Who is Eligible for a Tax Extension in Colorado?

Any taxpayer who needs more time to file their return can apply for a Colorado tax extension, provided they meet the payment requirement.

What Are the Penalties for Filing My Taxes Late in Colorado?

Failure to file by the extended deadline can result in penalties of 5% per month (up to 25%) of the tax owed, plus additional interest.

What Are the Penalties for Paying My Taxes Late in Colorado?

Late payment penalties include 3% above the prime rate, compounded annually, and any balance still owed.

Can I get automated tax notification updates?

You can sign up for Email Alerts Taxpayer to get automated notifications.

Summary of Colorado General Fund Gross Receipts and Marijuana Tax Revenues

The Colorado Gross Receipts by Source chart for fiscal years 2019-2023 illustrates that income and sales taxes are the most significant contributors to the state's revenue. In 2023, gross receipts reached $22.8 billion, with income and sales taxes being the most significant sources.

The Marijuana Sales and Tax Revenue chart for the same period highlights the continued importance of the marijuana industry in Colorado's economy. Although marijuana sales peaked in 2021 at $2.4 billion, they remained strong in 2023 with $1.6 billion, contributing substantial tax revenue for public services such as education and infrastructure.

Let's Wrap it Up

We have just covered everything you need to know about requesting a Colorado extension.

While the extension gives you more time to file your return, it's important to remember that at least 70% of your taxes must have been paid by April 15th to avoid penalties.

We discussed the steps for filing Form DR 0158-I, either online or by mail, and the critical deadlines, eligibility requirements, and penalties for late payments or filings.

In addition, we examined Colorado's primary sources of revenue, including the significant impact of marijuana sales and taxes on the state's economy.

Work with Our Experts!

Tax return extensions can be simple, but navigating federal tax extensions can be tricky.

Luckily, you don't have to do it alone – work with our tax experts to ensure everything is filed correctly and on time. Click here now to get started!