Royality taxes

If you live in a tax free state like Texas, but get royality income (Oil&Gas income) within a state that has State income taxes, Colorado, do you have to file Colorado State income taxes?
Russ

Maybe. Check the Colorado Dept of Revenue website for the rules for non-resident tax returns.

If you live in a tax free state like Texas, but get royality income (Oil&Gas income) within a state that has State income taxes, Colorado, do you have to file Colorado State income taxes?

For Colorado, it’s not because they have a state income tax, it’s because there is a specific requirement for anyone who receives oil and gas income that originated in Colorado to file a severance tax return:

https://tax.colorado.gov/ogs-individual-filers

Anyone who receives oil and gas income, or income derived from other natural resources like timber or mining, should check the state rules on taxation for the state where those natural resources are being produced.

AJ

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