Colorado taxpayers who qualify for the Federal Earned Income Tax Credit (EITC) can claim a percent of the amount they claim on their federal tax return on their state tax return. See the Internal Revenue Service Earned Income Tax Credit webpage for federal income limits. The state earned income tax credit amount will vary based on income.
Full-year and part-year Colorado residents who claimed the EITC on their federal return can claim the Colorado Earned Income Tax Credit (COEITC), as well. Nonresidents of Colorado do not qualify for the COEITC.
How do I claim the Colorado Earned Income Tax Credit (COEITC)?
Filing Using a Paper Return or Downloaded PDF Form
The state EITC is claimed on the Individual Income Tax Credit Schedule (DR 0104CR). The DR 0104CR must be filed with your Individual Income Tax Return (DR 0104). Instructions for calculating the Colorado EITC are included in the Colorado Individual Income Tax Return Booklet (DR 0104 Book).
If you have EITC qualifying children, be sure to complete the table for each qualifying child. Read the instructions in the DR 0104 Book for additional guidance on completing this section. Only check the “Deceased” box for a qualifying child if the child was born and died in the tax year you are filing for and was not assigned an SSN. You must submit a copy of the child’s birth certificate, death certificate, or hospital records showing a live birth with your return.
Expanded Colorado Earned Income Tax Credit
If you were ineligible for the federal EITC because 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, then you may qualify for the new Expanded Colorado Earned Income Tax Credit (COEITC). Visit the Expanded Colorado Earned Income Tax Credit (COEITC) for ITIN Filers web page for more information.