Families and Individuals Tax Benefits

A refundable income tax credit is allowed to resident individuals who pay child or dependent care expenses. The credit is generally a percentage of the federal child care credit allowed to the individual for the tax year, depending on the taxpayer’s adjusted gross income.

Adjusted gross income limit: $60,000
Required forms: DR 0104CR and DR 0347
Additional guidance: Income Tax Topics: Child and Dependent Care Credit

An income tax subtraction is allowed to individuals for payments or contributions they made during the tax year to a college savings plan with CollegeInvest. The subtraction is subject to certain per-beneficiary limits.

Required forms: DR 0104AD
Additional guidance: CollegeInvest Contribution Subtraction

A refundable income tax credit is allowed to resident individuals who have an eligible child under the age of 6.  For tax years 2024 and later, the credit is a fixed amount for each qualifying child, depending on the taxpayer’s adjusted gross income.

Adjusted gross income limit: $85,000 for joint filers and $75,000 for single filers
Required forms: DR 0104CR and DR 0104CN
Additional guidance: Income Tax Topics: Child Tax Credit and Tax.Colorado.gov/CTC-EITC

A refundable income tax credit is allowed to resident individuals who are allowed a federal earned income tax credit, those who cannot claim the federal credit because they, their spouse, or their dependents do not have a work-eligible Social Security number, and certain individuals under age 25. The Colorado credit is a percentage of the allowable federal credit, depending on the tax year.

Adjusted gross income limit: See information on the IRS website
Required forms: DR 0104CR and possibly DR 0104TN
Additional guidance: Income Tax Topics: Earned Income Tax Credit and Tax.Colorado.gov/CTC-EITC

A refundable income tax credit is allowed for tax years 2022 through 2025 to individuals who hold an early childhood professional credential issued by the Department of Early Childhood. The credit is a fixed amount that increases annually for inflation based on the credential level the individual holds.

Adjusted gross income limit: $150,000 for joint filers and $75,000 for single filers
Required forms: DR 0104CR and DR 1703
Additional guidance: Income Tax Topics: Early Childhood Educator Credit

A refundable income tax credit is allowed for tax year 2024 to resident individuals who have a qualifying child under the age of 17. The credit is a fixed amount for each qualifying child, depending on the taxpayer’s adjusted gross income.

Adjusted gross income limit: $95,000 for joint filers and $85,000 for single filers
Required forms: DR 0104CR and DR 0104CN
Additional guidance: Income Tax Topics: Family Affordability Tax Credit and Tax.Colorado.gov/CTC-EITC

A refundable income tax credit is allowed to resident individuals who incur expenses for the care of a dependent child under the age of 13 and who cannot claim the federal child care credit or the regular Colorado child care expenses credit because they have no federal income tax liability. The credit is 25% of the resident individual’s child care expenses, but cannot exceed $500 for a single dependent or $1,000 for two or more dependents.

Adjusted gross income limit: $25,000
Required forms: DR 0104CR and DR 0347
Additional guidance: Income Tax Topics: Low-Income Child Care Expenses Credit

An income tax subtraction is allowed to individuals who claim the standard deduction, rather than itemized
deductions, on their federal income tax returns. The subtraction is allowed for the aggregate amount of qualifying charitable contributions they make during the tax year in excess of $500.

Required forms: DR 0104AD
Additional guidance:Income Tax Topics: Charitable Contributions

Depending on state revenue, a refundable income tax credit may be allowed to qualifying resident individuals. The credit amounts vary from year to year and may depend on the qualifying individual’s adjusted gross income.

Required forms: DR 0104
Additional guidance: Income Tax Topics: State Sales Tax Refund

A refundable income tax credit is allowed to eligible students for tax years 2025 and later. Students must be Colorado residents and must meet several additional requirements to qualify for the credit.

Adjusted gross income limit: $90,000 on the FAFSA or CASFA for the semester or term
Required forms: DR 0104CR
Additional guidance: Colorado Department of Higher Education website