DENVER (KDVR) — Nobody likes taxes, but Coloradans have a better time around tax season than most other states.
Financial adviser SmartAsset crunched tax filings and income data to see in which states do filers write off the most in their annual returns. Coastal states and certain states in the Mountain West have as many as twice as many tax returns with itemized deductions than interior states.
The study ranks three items – how many tax returns contain write offs, the average deduction’s dollar amount and the percentage of income the itemized deductions equal.
Colorado ranked 11th highest among U.S. states for a combination of the three metrics.
In the Centennial State, 12.23% of all tax returns have itemized deduction, the country’s tenth-highest share. The average itemized deduction is worth $35,772 and represents 5.01% of income.
At the top of the list is Maryland, where one in five (21.08%) of tax returns have write offs, followed by Washington, D.C., California, Virginia, New Jersey and Utah.
Southern and Great Plains states have much fewer returns with deductions. In West Virginia, the Dakotas, Indiana, Wyoming and Ohio, between 3.5% and 5.4% of tax returns have itemized deductions.