![Colorado Form DR 0104AD — Subtractions from Income Schedule [thisnextyear]](https://taxformdesk.com/wp-content/uploads/2026/10/out-feat-form-dr-0104ad.jpg)
What is Form DR 0104AD?
Quick answer: Form DR 0104AD is Colorado’s Subtractions from Income Schedule. It lists the amounts you can subtract from federal taxable income, such as Social Security benefits, pension and annuity income, U.S. government interest, military retirement benefits and CollegeInvest or ABLE contributions. The total on line 22 goes on line 11 of the DR 0104, and a paper filer must submit the schedule with the return whenever any subtraction is claimed.
Colorado starts from your federal taxable income. Because Colorado does not tax some kinds of income, or taxes them only in part, the DR 0104AD is where you take those amounts back out. A bigger subtraction lowers your Colorado taxable income and therefore your Colorado tax.
The age rules matter most on this schedule. Social Security and pension subtractions depend on whether you were 65 or older, between 55 and 64, or younger on December 31, 2025, and on federal adjusted gross income for the middle group. Spouses are never combined: each claims their own benefits on their own line.
Key Figures — DR 0104AD (09/15/25) and the 2025 DR 0104 Booklet
- Where it goes: line 22 total to DR 0104, line 11. Do not enter negative amounts.
- Social Security (lines 3 and 5): age 65 or older, the whole amount; ages 55 to 64, the whole amount if federal AGI is $75,000 or less (single) or $95,000 or less (joint), otherwise $20,000; under 55, only survivor benefits up to $20,000.
- Pension and annuity (lines 4 and 6): age 65 or older, up to $24,000 minus any Social Security subtraction; ages 55 to 64, up to $20,000 minus any Social Security subtraction.
- Military retirement (lines 7 and 8): up to $15,000 if you were 54 or younger on December 31, 2025.
- CollegeInvest and ABLE (lines 10 and 11): 2025 limit per beneficiary of $25,400 for single filers and $38,100 for joint filers, combined for the same beneficiary.
- Agricultural land capital gain (line 9): up to $100,000, with DR 1316.
- Paper filing: if you claim a subtraction and file on paper, submit the DR 0104AD with the DR 0104.
Source: the Colorado Department of Revenue, 2025 Form DR 0104AD (09/15/25) and the 2025 DR 0104 Booklet. Last verified October 22, 2026.
Who Must File Form DR 0104AD?
You use it if you want to subtract any amount from federal taxable income on your Colorado return. If none of the lines apply to you, you do not need the schedule and line 11 of the DR 0104 stays blank.
Retirees and Social Security recipients are the most common filers. They enter benefits on line 3 or 5 and pension income on line 4 or 6, and attach copies of the SSA-1099 and 1099-R statements.
Married couples may each claim their own subtractions. The first person listed on the return reports on lines 3, 4 and 7, and the second person on lines 5, 6 and 8.
Farmers, investors, savers and veterans use lines 9, 10, 11, 7 and 8, with supporting forms such as DR 1316 for the agricultural gain.
Common trap: entering the same retirement income twice. Social Security and pension subtractions interact: the pension subtraction is reduced by whatever you subtract for Social Security, and the two spouses’ income cannot be mixed.
How to File Form DR 0104AD
- Complete your federal return first, since the subtractions apply to amounts already included in federal taxable income.
- Go line by line and enter only the lines that apply, using the booklet instructions for limits and age tests.
- Attach the supporting documents: SSA-1099 and 1099-R statements, DR 1316, proof of tribal membership, FAMLI 1099-G and so on.
- Total lines 1 through 21 on line 22 and carry it to DR 0104, line 11. The two amounts must match exactly.
- Submit the schedule with the DR 0104 through Revenue Online, approved software or on paper.
When Is Form DR 0104AD Due?
The DR 0104AD is due with the DR 0104: April 15 after the tax year ends, or the next business day if April 15 falls on a weekend or legal holiday. For tax year 2025 that was April 15, 2026. The automatic extension to October 15 applies to filing only, not payment.
Where to Mail Form DR 0104AD
Mail the schedule with the DR 0104. Per the 2025 booklet, send a return with payment to Colorado Department of Revenue, Denver CO 80261-0006, and a return without payment to Denver CO 80261-0005.
How to Complete Form DR 0104AD Line by Line
Lines 1–8: State Refunds, Government Interest, Social Security, Pensions and Military
These lines cover the most common subtractions.
| Line | What to enter |
|---|---|
| Line 1 | Taxable state tax refunds, credits and offsets from federal Form 1040, Schedule 1, line 1. Enter $0 if you did not complete Schedule 1. |
| Line 2 | Interest from U.S. government bonds, treasury bills and other obligations of the U.S. or its territories and agencies that is part of your federal taxable income. Fannie Mae and Ginnie Mae interest does not qualify, and mutual fund dividends may not be fully exempt. |
| Line 3 | Primary taxpayer Social Security benefits (including SSDI) included in federal taxable income. Age 65 or older: all of it. Ages 55 to 64: all of it if single with federal AGI up to $75,000 or married filing jointly up to $95,000, otherwise limited to $20,000. Under 55: only survivor benefits, limited to $20,000. |
| Line 4 | Primary taxpayer pension, annuity, IRA or disability income (not SSDI) included in federal taxable income. Age 65 or older: the smaller of $24,000 minus line 3 or the taxable amount. Ages 55 to 64: the smaller of $20,000 minus line 3 or the taxable amount. Younger secondary beneficiaries have a $20,000 limit. |
| Lines 5 and 6 | The same subtractions for the second spouse on a joint return: Social Security (line 5, with a $95,000 federal AGI test for ages 55 to 64) and pension, annuity, IRA or disability income (line 6). Each spouse claims only their own income; lines 3 and 5 together cannot exceed Form 1040 line 6b. |
| Lines 7 and 8 | Military retirement benefits for you (line 7) and your spouse (line 8) if you were 54 or younger on December 31, 2025: the smaller of $15,000 or the taxable military retirement benefits. Attach Form 1099-R. |
Part-year residents and nonresidents also complete the DR 0104PN, which pulls the total of this schedule into its own calculation.
Lines 9–17: Agricultural Gains, Savings Plans, Charity and Other Specific Subtractions
| Line | What to enter |
|---|---|
| Line 9 | Colorado agricultural land capital gain, up to $100,000, for farmers who sold Colorado agricultural land. Requires DR 1316, a recent property tax statement, Schedule F and Schedule D or Form 4797. |
| Line 10 | CollegeInvest contribution. Enter the amount, the account owner’s name and SSN or ITIN. 2025 per-beneficiary limit: $25,400 single, $38,100 joint (shared with ABLE contributions for the same beneficiary). |
| Line 11 | Colorado ABLE contribution, with the same per-beneficiary limits and owner information. |
| Line 12 | Qualifying charitable contribution, only if you did not itemize and did not deduct charitable gifts on federal Schedule A. Complete the worksheet in the booklet; an adjustment of $500 applies. For claims over $5,000, send receipts. |
| Line 13 | Qualified reservation income earned wholly from reservation sources by an enrolled tribal member living on the reservation. Proof of tribal membership, residence and source must be submitted every three years. |
| Line 14 | PERA contributions made July 1, 1984 to December 31, 1986, or Denver Public Schools retirement contributions made in 1986, to the extent previously taxed. Attach your contribution statement. |
| Line 15 | Railroad retirement benefits (Tier 1 and 2) included in federal taxable income. Attach Forms RRB-1099 and RRB-1099R. |
| Line 16 | Colorado marijuana and natural medicine business deduction for expenses disallowed federally under section 280E; requires pro forma schedules, the actual federal schedules and your license number. |
| Line 17 | Compensation for active duty service after reacquiring Colorado residency, for qualifying military servicepersons with supporting records. |
Lines 18–22: Other Subtractions and the Total
| Line | What to enter |
|---|---|
| Line 18 | Employee subtraction for an employer contribution to a home savings account that is included in your federal taxable income. |
| Line 19 | FAMLI benefits included in federal taxable income (reduced by any contributions you netted on Schedule 1 line 7). Unemployment compensation does not qualify. Attach Form 1099-G from the FAMLI Division if you received one. |
| Line 20 | Other allowable subtractions, with a clear explanation in the space provided. Do not include amounts earned outside Colorado, net operating losses, military income, wage adjustments, IRC section 1341 repayments or Military Family Relief Fund donations. |
| Line 21 | Carryforward subtractions allowed under HB21-1002 for the 2021 tax year only. |
| Line 22 | Subtotal of lines 1 through 21. Enter it on DR 0104, line 11. |
Worked Example — A 66-Year-Old Retiree
A single filer who was 66 on December 31, 2025 received $20,000 of Social Security benefits that are included in federal taxable income and $30,000 of taxable pension income. Line 3 is $20,000 (all of it, because the filer is 65 or older). On line 4 the subtraction is the smaller of $24,000 minus line 3, or $4,000, and the taxable pension of $30,000, so line 4 is $4,000. With no other subtractions, line 22 is $24,000, which goes on DR 0104, line 11. (An illustration with made-up numbers, using the 2025 booklet rules.)
Common Mistakes to Avoid
- Using the wrong age on December 31. The Social Security and pension limits depend on your age at the end of the tax year, not your age when you file.
- Not attaching the statements. SSA-1099 and 1099-R forms must go with the return.
- Putting a spouse’s pension on your own line. Each spouse reports their own income on their own line.
- Entering negative amounts. The schedule asks for positive subtraction amounts only.
- Claiming a charitable subtraction after itemizing. Line 12 is only for filers who did not deduct charitable gifts on federal Schedule A.
- Line 22 not matching DR 0104 line 11. The booklet says the two amounts must match exactly for faster processing.
Frequently Asked Questions
Is Social Security taxed in Colorado? It depends on age and income. If you were 65 or older on December 31, 2025, you can subtract all the Social Security benefits included in your federal taxable income. At ages 55 to 64 the full subtraction depends on federal AGI, and younger filers can subtract only survivor benefits up to $20,000.
Do I have to file the DR 0104AD every year? Only in a year when you claim a subtraction. If you claim none, line 11 of the DR 0104 stays blank and you do not need the schedule.
Where does the total go? Line 22 goes on line 11 of the DR 0104.
How much pension income can I subtract? At 65 or older, up to $24,000 minus any Social Security subtraction; at 55 to 64, up to $20,000 minus any Social Security subtraction, in both cases limited to the taxable pension amount.
Can both spouses claim the subtractions? Yes. The first person on the return uses lines 3, 4 and 7 and the second person lines 5, 6 and 8, and each must meet the requirements separately.
What are lines 10 and 11? Subtractions for contributions to a CollegeInvest tuition account and to a Colorado ABLE account, each limited per beneficiary for the tax year.
Final Review Before Filing
- Each subtraction is already included in your federal taxable income.
- The age tests are based on your age on December 31, 2025.
- Social Security, pension and military lines are claimed by the correct spouse.
- SSA-1099, 1099-R, DR 1316 and other supporting documents are attached.
- Line 22 is the sum of lines 1 through 21 and matches DR 0104, line 11.
- The schedule is submitted with the DR 0104.
Sources & verification
- Issuing agency: Colorado Department of Revenue
- Official documents: 2025 Form DR 0104AD (PDF) · 2025 DR 0104 Booklet (PDF) · Colorado Department of Revenue
- Checked against: the 2025 Form DR 0104AD (09/15/25) and the 2025 DR 0104 Booklet
- Last verified: October 22, 2026
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General information from the official form and its instructions, not advice for your circumstances. See the full disclaimer.