Enlarge image | DR 0004 (11/15/22) COLORADO DEPARTMENT OF REVENUE Tax.Colorado.gov 2023 Colorado Employee Withholding Certificate This Certificate Is Optional for Employees When to Complete a New Certificate If you do not complete this certificate, then your employer You may adjust your withholding at any time. Consider will calculate your Colorado withholding based on your completing a new certificate for the following reasons: IRS Form W-4. That calculation is designed to withhold 1. You last completed a certificate three or more years ago; the required Colorado income tax due on your wages 2. Your wages or other income changes significantly; throughout the year, and it will generally result in a refund when you file your Colorado income tax return. 3. Your number of jobs changes; 4. Your expected filing status (single, married filing Reasons to Complete This Certificate jointly, etc.) changes; Complete this certificate if you want to adjust your Colorado withholding for one or more of the following reasons: 5. Your expected federal deductions change significantly; 6. You have a new qualifying child for the child tax credit; or 1. You expect to claim federal itemized deductions or the Colorado child tax credit, 7. You or your child will no longer qualify for the Colorado child tax credit, including if your child will turn 6 years 2. You (and your spouse, if filing jointly) earn most of old this year. your income from one job, or 3. You expect significant income from other sources. If You Complete This Certificate For most taxpayers, completing this certificate will likely 1. Give it to your employer; then they must calculate your increase your take-home pay, reduce your Colorado Colorado withholding based on the amounts you entered. withholding, and reduce your refund when you file your 2. If you (and your spouse, if filing jointly) have multiple Colorado income tax return. Consider the amounts you jobs, complete a separate certificate for each one. enter carefully. If too little is withheld, then you will owe In order to prevent evasion of Colorado income tax, the tax when you file your return, and you may owe a penalty. Department may review and adjust your withholding. 1. Personal Information Last Name First Name Middle Initial Mailing Address SSN or ITIN City State ZIP Code 2. Annual Withholding Allowance. If this line is blank, your employer will use an amount based on your IRS Form W-4. a. Enter the appropriate amount from Table 1, based on your federal standard deduction and number of jobs; OR b. Complete Worksheet 1 and enter the result here, if you expect to claim additional federal deductions or the Colorado child tax credit, or if you (and your spouse, if filing jointly) have multiple jobs but earn most of your income from one job. If you want a greater amount withheld, you may enter a smaller amount than either calculation, including zero, and/or you may complete Line 3. $ 3. Additional Withholding Per Pay Period Enter any additional tax you want withheld from each paycheck. If you expect to receive other income that will not have withholding, you may complete Worksheet 2 and include the result here. $ 4. Sign Here. This form is not valid unless you sign this declaration: I declare that the amounts on this certificate have not been presented to willfully evade Colorado income tax or obstruct its collection. Employee Signature Date (MM/DD/YY) Table 1: Standard Allowance Go down the first column to your expected filing status from IRS Form W-4 Step 1(c). Then go across that row to the column with the number of jobs that you (and your spouse, if filing jointly) currently have. Standard Allowance for: Filing Status from IRS Form W-4 Step 1(c) 1 Job 2 Jobs 3 Jobs 4 or More Jobs Single or Married Filing Separately $11,500 $6,000 $4,000 $3,000 Head of Household $18,500 $9,500 $6,000 $4,500 Married Filing Jointly or Qualifying Widow(er) $25,500 $12,500 $8,500 $6,500 |
Enlarge image | DR 0004 (11/15/22) COLORADO DEPARTMENT OF REVENUE Tax.Colorado.gov Worksheet 1: Withholding Allowance This worksheet is optional. You may complete the You (and your spouse, if filing jointly) only need to complete Colorado Employee Withholding Certificate without this worksheet once regardless of your number of jobs. completing this worksheet. Complete this worksheet only However, you will need to give a separate Colorado if you want to adjust your Colorado withholding for one or Employee Withholding Certificate to each of your employers. both of the following reasons: Do not give this worksheet to your employers. 1. You expect to claim additional federal deductions or the For more information about itemized deductions, see IRS Colorado child tax credit; or Topic No. 501. For more information about qualifying for the child tax credit, see IRS Publication 972. Please note that 2. You (and your spouse, if filing jointly) have multiple jobs the Colorado child tax credit is allowed for qualifying children but earn most of your income from one job. who do not have a work-eligible social security number. To use the electronic DR 0004 Withholding Calculator, go to Tax.Colorado.gov/Withholding-Forms. 1. Enter the amount of income you (and your spouse, if filing jointly) expect to receive this year from all sources. $ 2. Enter your Standard Allowance, based on your expected filing status from IRS Form W-4 Step 1(c): a. $11,500 if single or married filing separately; b. $18,500 if head of household; or c. $25,500 if married filing jointly or qualifying widow(er). $ 3. Enter the amount from IRS Form W-4 Step 4(b), if any, which is your estimated federal deductions that exceed the standard deduction. $ 4. Enter your Child Tax Credit Allowance from Table 2 below. If you do not want to reduce your withholding for the Colorado child tax credit, you may enter zero on this line, even if you expect to claim the credit. $ 5. Add Lines 2, 3, and 4. This is your Total Withholding Allowance. $ 6. Enter the number of jobs that you (and your spouse, if filing jointly) currently have. 7. Divide Line 5 by Line 6. This is your Annual Withholding Allowance for each job. $ a. If you (and your spouse, if filing jointly) have multiple jobs but earn most of your income from one job, you may want to divide the Total Withholding Allowance on Line 5 unevenly between your jobs. For example, if you earn 75% of your income from one job, you could use 75% of Line 5 for that job and the remaining 25% of Line 5 for your other job(s). If you choose to divide Line 5 unevenly, you will need to complete a separate Colorado Employee Withholding Certificate for each job. b. If you want a greater amount withheld, you may enter a smaller amount than your calculation. Enter the amount you choose on Line 2 of your Colorado Employee Withholding Certificate. Table 2: Child Tax Credit Allowance Go down the first column to your expected filing status from IRS Form W-4 Step 1(c). Then select the corresponding row in the second column with your expected income from Line 1 of Worksheet 1. Finally, go across that row to the column with your number of qualifying children. Filing Status from IRS Income from Line 1 Allowance for Qualifying Children Under Age 6 on December 31 of this year: Form W-4 Step 1(c) of Worksheet 1 1 Child 2 Children 3 or More Children $0 - $25,000 $9,000 $13,000 $11,500 Single, Married Filing $25,001 - $50,000 $7,000 $13,000 $17,000 Separately, or Head of Household $50,001 - $75,000 $2,500 $5,000 $7,000 $75,001 or more $0 $0 $0 $0 - $35,000 $10,000 $17,500 $20,000 Married Filing Jointly or $35,001 - $60,000 $7,000 $14,000 $19,000 Qualifying Widow(er) $60,001 - $85,000 $2,500 $5,000 $7,000 $85,001 or more $0 $0 $0 |
Enlarge image | DR 0004 (11/15/22) COLORADO DEPARTMENT OF REVENUE Tax.Colorado.gov Worksheet 2: Additional Withholding This worksheet is optional. You may complete the Colorado Alternatively, you may use form DR 0104EP to submit Employee Withholding Certificate without completing this estimated tax payments for any non-wage income that worksheet. Complete this worksheet only if you would like you receive. If you do not ensure that you have enough to calculate additional wage withholding to cover other withholding and estimated tax payments, then you will owe types of taxable income that you (and your spouse, if filing tax when you file your return, and you may owe a penalty. jointly) expect to receive this year. This may include interest, For more information about withholding and estimated tax dividends, retirement income, rental income, or income from payments, see parts 6 and 7 of the Colorado Individual self-employment or as an independent contractor. Income Tax Guide. To use the electronic DR 0004 Withholding Calculator, go to For more information about taxable and nontaxable income, Tax.Colorado.gov/Withholding-Forms. see IRS Publication 525. For information about the Colorado Complete a separate copy of this worksheet for each job to pension and annuity subtraction, go to Tax.Colorado.gov/ Individual-Income-Tax-Guidance-Publications. which you would like to add withholding. Do not give this worksheet to your employer. 1. Enter the amount from IRS Form W-4 Step 4(a), which is your estimated non-business income for this year. $ 2. Enter any other non-wage income that you (and your spouse, if filing jointly) expect to receive this year, but is not included in the amount from IRS Form W-4 Step 4(a). This may include income from self-employment or as an independent contractor. $ 3. Add Lines 1 and 2. This is your Total Additional Income. $ 4. Multiply Line 3 by 4.40% (0.044). This is your Total Additional Withholding. $ 5. Divide Line 4 by the number of jobs to which you would like to add withholding. This is your Additional Withholding Per Job. $ 6. Divide Line 5 by the number of pay periods during the year for this job (see Table 3 below). This is your Additional Withholding Per Pay Period. Enter this amount on Line 3 of your Colorado Employee Withholding Certificate. $ Table 3: Pay Periods During the Year Semimonthly means twice a month, usually on the 15th and 30th. Biweekly means every other week, usually on Fridays, regardless of the month. Annually Semiannually Quarterly Monthly Semimonthly Biweekly Weekly Daily 1 2 4 12 24 26 52 260 |