Expanded Colorado Earned Income Tax Credit (COEITC)

About the Expanded COEITC 

The Expanded Colorado Earned Income Tax Credit (COEITC) for ITIN Filers is a new credit and is available for the 2020 tax year. If you could not claim the Federal Earned Income Tax Credit (EITC), then you may qualify for the Expanded COEITC. This credit would apply to you if you, your spouse, and/or your child or children have an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) that is not valid for employment.

If you and everyone in your household have a work-eligible Social Security Number (SSN), meaning you can use your SSN to obtain employment, then visit the EITC for SSN Filers web page to see if you are eligible for the Federal Earned Income Tax Credit

To claim the Expanded COEITC you must be a Colorado resident. This means that you were domiciled in Colorado or had a permanent home in Colorado where you spent more than six months of the tax year. Other requirements and limits apply to the Expanded COEITC. Before you claim this credit, be sure to complete the eligibility checklist at below. 

If the checklist below says you are eligible, then complete the DR 0104TN form to calculate your earned income and the federal EITC that you would have qualified for if you had a work-eligible SSN. For more information, visit the DR0104TN Information web page. 

 

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Expanded Colorado Earned Income Tax Credit (COEITC) Eligibility Checklist

  Download a Copy of the Expanded COEITC Eligibility Checklist

 

Question 1. Do you, your spouse, and your children all have a work-eligible Social Security Number (SSN)? 

 

Question 2. Were you a full-year or part-year Colorado resident during this tax year (year you are filing for)? 
  • Yes - Go to the next question (Question 3).
  • No - You do not qualify for the Expanded COEITC.

 

Question 3. Will you claim children for this tax year?
  • Yes - Complete the following questions. If the answer is “Yes'' to any of the following questions, then your child is a “qualifying child” for the Expanded COEITC. Repeat for each child you plan to claim for this tax year. If you have qualifying children, go to Question 5
    • 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 a joint return), 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 are you the person eligible to claim this child under tiebreaker rules that apply to a qualifying child of more than one person?
    • If the child is married, are they: filing a joint tax return, but only claiming a refund of withheld or estimated taxes, or filing separately from their spouse?
  • No - If the questions directly above do not apply, then go to the next question (Question 4). 

 

Question 4. Do you have Expanded COEITC qualifying children? 
  • Yes - Go to the next question (Question 5). 
  • No -  Do any of the following situations apply?  If you answer “Yes'' to all of the following questions, then go to the next question (Question 5).  If you answer “No” to any of the following questions, you do not qualify for the Expanded COEITC. 
    • Can you (and your spouse if filing a joint return) NOT be claimed as a dependent on anyone else’s return? 
    • Was your main home (and your spouse’s if filing a joint return) in the United States for more than half of the tax year? 
    • Were you (or your spouse if filing a joint return) at least age 25 but under age 65 at the end of the tax year? 

 

Question 5. All Taxpayers: Do any of the following situations apply to you? 
  • Yes - If you answer "Yes" to any of following questions, then you do not qualify for the Expanded COEITC.
    • Is your filing status married filing separately?
    • Are you (or your spouse if filing a joint return) treated as a nonresident alien for any part of this tax year?
    • 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 or Federal Form 2555-EZ?  
  • No - If the questions directly above do not apply, then go to the next question (Question 6).

 

Question 6. Income Limits: Do all of the following apply to you? 
  • Yes - If you answer "Yes" to all of the following questions, then complete the DR 0104TN form to calculate and claim the Expanded COEITC. More information on how to complete the DR 0104TN form can be found on the DR 0104TN Form Information web page.  
    • Is your investment income less than $3,650? 
    • Is your total earned income at least $1? 
    • Are both your total earned income (see Rule 15 in IRS Publication 596) and your adjusted gross income (line 11 on Form 1040 or 1040-SR) less than:
      • $15,820 ($21,710 if married filing jointly) with no qualifying children
      • $41,756 ($47,646 if married filing jointly) with one qualifying child 
      • $47,440 ($53,330 if married filing jointly) with two qualifying children
      • $50,954 ($56,844 if married filing jointly) with three or more qualifying children
  • No - If the questions directly above do not apply, then you do not qualify for the Expanded COEITC.