Colorado’s Child Care and Direct Care Workers, Including Family, Friend, and Neighbor Providers, Eligible for a $1,200 Tax Credit
DENVER — Lieutenant Governor Dianne Primavera is partnering with the Department of Revenue and Department of Early Childhood to promote the Care Worker Tax Credit and save people money.
“This administration recognizes that the people who care for our children are doing some of the most important work in Colorado,” said Lt. Governor Primavera. “They are not just watching after our loved ones, they are also watching after our state's future. That is why we want to make sure that eligible Coloradans are taking advantage of the Qualified Care Worker Tax Credit, which will help caregivers keep more of their hard-earned money.”
The Qualified Care Worker Tax Credit provides up to $1,200 to Colorado child care workers and direct care workers who meet eligibility requirements. This includes:
- Child care workers who provide care for at least 720 hours per year for children who are five years of age or younger as an employee or operator of a licensed child care center, preschool, or family child care home with a Colorado Shines rating Level 1-5.
- Informal family, friend, or neighbor (FFN) child care workers who provide care for children other than their own. Child care workers must complete a Care Worker Tax Credit Attestation in the Colorado Shines Professional Development Information System (PDIS) to be eligible.
- Direct Care workers who provide hands-on care and services to Coloradans receiving long-term care who complete 720 hours with eligible employers or through consumer-directed care
Care workers must be Colorado residents and earn under $75,000 (single filers) or $100,000 (joint filers) to claim the credit.
“Early child care and direct care workers are the heart of Colorado’s communities, nurturing children and supporting families every day,” said Colorado Department of Early Childhood (CDEC) Executive Director Dr. Lisa Roy. “CDEC is proud to support the Care Worker Tax Credit and to help provide financial stability for these essential professionals. Licensed child care workers and FFN caregivers alike play a vital role in helping Colorado’s youngest learners grow, thrive, and reach their full potential.”
Eligible care workers can claim the credit when filing their 2025 Colorado income tax returns by the upcoming April 15, 2026, deadline. Colorado automatically extends the filing deadline by six months to October 15, 2026, for those who need additional time. Care workers who have already filed their 2025 tax returns can still receive the credit by filing an amended return with the Colorado Department of Revenue.
“The Department of Revenue is proud to work with our colleagues to help Coloradans save money,” said Department of Revenue Executive Director Heidi Humphreys. “As a former educator, I recognize the $1,200 state income tax credit can help provide financial stability to the Coloradans who educate the Centennial State’s youngest learners and future leaders.”
For more information about the Qualified Care Worker Tax Credit, visit the Colorado Department of Early Childhood's Care Worker Tax Credit Page for program details and eligibility requirements. The Department of Health Care Policy and Financing also offers a helpful FAQ Sheet answering common questions about the credit. When you're ready to claim your credit, you can access the Care Worker Tax Credit Form through the Department of Revenue. For additional tax resources and assistance, visit the DOR Tax Division.