Does a Colorado resident trust withhold on IRA and pension income distributed to a non-resident beneficiary? If the retirement income is not taxable to the non-resident beneficiary, where does it get deducted or is it not shown as Colorado income at all? I had two completely different answers from the Colorado Dept of Revenue.
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Unfortunate that your first post in the forum has not yet received a reply, so this is to bump it up to the top again.
I have never prepared a CO trust, but I'm pretty sure that pension income to a CO non-resident is not CO source income and is not taxable by CO, if that helps. (Income based on intangibles, such as dividends, interest, and pensions are usually sourced to where the recipient is a resident). I suspect withholding is not required either."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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