You may be able to claim the Colorado Earned Income Tax Credit (COEITC) on form DR 0104TN if you cannot claim the Federal Earned Income Tax Credit (EITC) for the following reasons:
- You, your spouse, or your dependents have an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) that is not valid for employment.
- You were under 25 with no qualifying children, but you have a work-eligible SSN and meet the requirements for Certain Filers Under Age 25 (see below).
In addition, if you can claim a federal EITC, but you cannot include some of your dependents only because they have an ITIN or SSN that is not valid for employment, then you may be able to claim a higher COEITC by using form DR 0104TN.
If you can claim a Federal EITC including your spouse and up to three of your dependents, calculate your COEITC on form DR 0104CR lines 3-6.
To claim the COEITC, you must have been a full-year or part-year Colorado resident. See Part 1 of the Colorado Individual Income Tax Guide for information about Colorado residency.
For information about other tax credits and subtractions, go to the Families and Individuals Tax Benefits web page.
How do I fill out the DR 0104TN?
To see if you are eligible, use the Colorado EITC Assistant or the printable eligibility checklist, included with form DR 0104TN.
If you are eligible, complete form DR 0104TN to calculate your credit. Then transfer the applicable amount to form DR 0104CR line 9.
Specific Instructions
Complete Line 1 by entering the amount from Federal Form 1040, line 1z.
Complete Line 2 and Part I of Section B if you are a minister, member of a religious order who has not taken a vow of poverty, or Christian Science practitioner.
Complete Line 3 and Part I of Section B if you are a non-clergy employee of a church or qualified church-controlled organization that is exempt from employer Social Security and Medicare taxes.
Medicaid Waiver Payments. Complete Line 4 if you reported nontaxable Medicaid waiver payments on Federal Form 1040 Schedule 1, line 8s, and you elect to exclude them from your earned income. For more information, see the instructions for Federal Form 1040.
Combat Pay. Complete Line 7 if you received nontaxable combat pay (on form W-2, box 12, code Q), and you elect to include it in your earned income.
Effect of Election. Electing to exclude Medicaid waiver payments or include combat pay in your earned income may increase or decrease your COEITC. For examples, see Rule 15 in IRS Publication 596.
For each of these elections, you must enter all of the nontaxable pay you received of that type. However, if you are filing jointly and your spouse also received the same type of nontaxable pay, your spouse may make a separate election. Therefore, one spouse may exclude Medicaid waiver payments or include combat pay, but the other spouse may elect not to.
Complete Section B using the appropriate amounts from Federal Schedules SE, F, K-1, and C, if applicable.
Complete Section C by entering the sum of your earned income, looking it up in the Federal EIC Table in IRS Publication 596, and entering the credit amount for your filing status and number of qualifying children. Do the same for your adjusted gross income if necessary, and then calculate your COEITC.
If you were under age 25 at the end of the tax year and had no qualifying children, complete Section D to declare how you are eligible for the COEITC. You must also have a work-eligible social security number.
Not a Specified Student. You may be eligible for the COEITC if you:
- were age 19-24 at the end of the tax year; and
- were not a Specified Student, as described below.
Specified Student. You may be eligible for the COEITC if you:
- were age 24 at the end of the tax year;
- were enrolled in a program that leads to a degree, certificate, or other recognized educational credential; and
- carried at least one-half the normal workload for your course of study during at least 5 calendar months of the year or an academic period, if longer. Count any month during which you were enrolled for at least part of the month, including non-consecutive months.
Qualified Homeless Youth. You may be eligible for the COEITC if you:
- were 18-24 at the end of the tax year;
- are an unaccompanied child or youth who is homeless or at risk of homelessness; and
- are self-supporting
Qualified Former Foster Youth. You may be eligible for the COEITC if:
- you were age 18-24 at the end of the tax year;
- on or after the date you attained age 14, you were in foster care provided under the supervision or administration of an entity administering (or eligible to administer) a plan under Part B (related to child welfare agencies) or Part E (related to federal payments of monthly payments for eligible children) of Title IV of the Social Security Act (without regard to whether federal assistance was provided to you under such Part E); and
- you consent for entities who administer a plan under Part B or Part E of title IV of the Social Security Act to disclose information to the Department related to your status as a qualified former foster youth.