Colorado resident with Pension income from Nevada

Mar 04, 2019 1 Replies

My wife & I are Colorado residents. Since retirement we spend our winters in Nevada. She worked as a school nurse in Nevada for five years and now gets a Nevada PERS pension of $7,839 per year. She gets over $24,000 from a Colorado PERA pension that uses all of the $24,000 Colorado pension income exemption.



Is it correct that the Nevada pension would not be taxed as Colorado income?



(One future possibility would be to change our permanent residence to Nevada to avoid state income taxes altogether. Our life style and property and other taxes are about the same in both states. We would just have to adjust very slightly by a few weeks to make sure to spend less than six months in Colorado each year.)



Thanks, Ivan


If you are residents of CO, all of your income including the NV pension will be taxable to CO unless there is a specific exemption. Establishing your residency may not be as simple as spending 183 days in a state as each state can establish its own rules and issues such as where you own property, have deeper ties, etc. can be determining factors.

Ira Smilovitz, EA

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