Colorado Earned Income Tax Credit (COEITC) for ITIN Filers or Certain Filers Under Age 25

#FFFFFF

The Colorado Earned Income Tax Credit (COEITC) has been expanded to the following taxpayers who cannot claim the Federal Earned Income Tax Credit (EITC).

  1. Starting with tax year 2020, this credit may be available if 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.
  2. Starting with tax year 2022, this credit may be available if you were under age 25 with no qualifying children, but you have a work-eligible SSN and meet the requirements for Certain Filers Under Age 25. Visit the DR 0104TN Information webpage for more information about these requirements. 

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 including them. 

If you can claim a Federal EITC including your spouse and up to three of your dependents, then visit the Colorado EITC for SSN Filers webpage.

To claim the Expanded COEITC, you must have been a Colorado resident. The credit is allowed to both full-year and part-year residents. Please see Part 1 of the Colorado Individual Income Tax Guide for additional information regarding Colorado residency. 

Start by completing the eligibility checklist, either the version below or the one included with form DR 0104TN. If you are eligible for the Expanded COEITC, then complete the DR 0104TN form to calculate your earned income and the federal EITC that would have been allowed if you had met all of the federal requirements. For more information, visit the DR 0104TN Information webpage. 

 

 

#FFFFFF

Tax Year 2022 Expanded COEITC Eligibility Checklist

For a PDF copy of this year's checklist or a prior year checklist, go to form DR 0104TN for that tax year. 

Question 1. Could you not claim the Federal EITC only for one of the following reasons?

  • Do you, your spouse, or your children have an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) that is not valid for employment?

OR

  • Do you (and your spouse, if filing jointly) have a work-eligible SSN, but were under age 25 at the end of the tax year?

Yes - If you answer "Yes" to either of these questions, then go to Question 2.

No - If you answer "No" to both of these questions, then you are not eligible for the Expanded COEITC. However you may be eligible for the COETIC based on your Federal EITC. Visit the Colorado EITC for SSN Filers webpage for more information. 

 

Question 2. Are you ineligible for the COEITC for any of the following reasons?

  • Were you a full-year nonresident of Colorado for this tax year? (See Part 1 of the Colorado Individual Income Tax Guide)
  • Are you married but not filing jointly, and don't meet the special rule for separated spouses? (See Rule 3 in IRS Publication 596)
  • Are you (or your spouse if filing jointly) treated as a nonresident alien for any part of this tax year? (See Rule 4 in IRS Publication 596)
  • Are you the qualifying child of another person who is required to file a return or who files a return to claim a tax benefit?
  • Are you filing Federal Form 2555?

Yes - If you answer "Yes" to any of these questions, then you are not eligible for the COEITC.

No - If you answer "No" to all five of these questions, then go to Question 3. 

 

Question 3. Can you claim qualifying children for the COEITC?

Answer the following questions for each child you plan to claim. If you do not plan to claim any children for this credit, go to Question 4.

  • Is the child your son or daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew)?
  • Is the child permanently and totally disabled?

OR

  • Is the child younger than you (or your spouse if filing jointly), and either:
    • under age 19 at the end of the tax year, or
    • under age 24 at the end of the tax year and a full time student?
  • Did the child have the same main home as you (or your spouse if filing jointly) in the United States for more than half of the tax year?
  • Are you the only person who may claim this child, or the person eligible to claim this child under the tiebreaker rules that apply to a qualifying child of more than one person? (See Rule 9 in IRS Publication 596)
  • If the child is married, are they either filing jointly but only claiming a refund of withheld or estimated taxes, or filing separately from their spouse?

Yes - If you answer "Yes" to all five of those questions, then the child is a "qualifying child" for the COETIC.

No - If you answer "No" to any of these questions, then the child is not a "qualifying child" for the COETIC.

Repeat these questions for each child you plan to claim, and then:

  • If you can claim up to 3 qualifying children, go to Question 5.
  • If you cannot claim any qualifying children, go to Question 4.  

 

Question 4. Are you eligible for the Expanded COEITC without qualifying children?

  • Can you (and your spouse if filing jointly) not be claimed as a dependent on anyone else's return?
  • Was your main home (and your spouse's if filing jointly) in the United States for more than half of the tax year?
  • If you (or your spouse if filing jointly) do not have a work-eligible social security number, were you at least 25 and under age 65 at the end of the tax year?

OR

If you (and your spouse if filing jointly) have a work-eligible social security number, were you:

  • age 24 at the end of tax year and a specified student,  
  • age 19-24 at the end of the tax year and not a specified student, or 
  • age 18-24 at the end of the tax year and qualified former foster youth or qualified homeless youth?

See the DR 0104TN Information webpage for more information about the requirements for Certain Filers Under Age 25. 

Yes - if you answer "Yes" to all three of these questions, then go to question 5. 

No - If you answer "No" to any of these questions, then you are not eligible for the Expanded COETIC. 

 

Question 5. Does your income meet the COETIC limits? 

  • Is your investment income less than $10,300? (See Rule 6 in IRS Publication 596)
  • Is your total earned income at least $1? (See Rule 7 in IRS Publication 596)
  • Are both your total earned income (see Rule 15 in IRS Publication 596) and your adjusted gross income (line 11 on Form 1040, 1040SR, or 1040SP) less than:
    • $16,480 (22,610 if married filing jointly) if you have no qualifying children?
    • $43,492 ($49,622 if married filing jointly) if you have one qualifying child?
    • $49,399 ($55,529 if married filing jointly) if you have two qualifying children?
    • $53,057 ($59,187 if married filing jointly) if you have three or more qualifying children?
       

Yes - If you answer "Yes" to all three of these questions, then complete the DR 0104TN form to calculate the Expanded COEITC. See the DR 0104TN Form Information webpage for more information. 

No - If you answer "No" to any of these questions, then you are not eligible for the COEITC.