Qualifying resident individuals can claim a refundable child tax credit for tax years 2022 and later. Income restrictions apply in determining eligibility for the credit. The credit is allowed only for eligible children under the age of 6. However, a separate credit may be allowed for children age 16 and younger. For additional information, please see Department publication Income Tax Topics: Family Affordability Tax Credit.
This publication is designed to provide general guidance regarding the child tax credit and to supplement guidance provided in the Colorado Individual Income Tax Guide.
Nothing in this publication modifies or is intended to modify the requirements of Colorado’s statutes and regulations. Taxpayers are encouraged to consult their tax advisors for guidance regarding specific situations.
Residency requirements
The child tax credit is allowed only to Colorado residents. An individual may qualify for a credit if they are either a full-year resident or part-year resident of Colorado for the tax year. Individuals who are not Colorado residents are not eligible for the credit. Please see Part 1 of the Colorado Individual Income Tax Guide for additional information about Colorado residency.
Income limits
An individual may claim the credit only if their federal adjusted gross income (AGI) does not exceed the applicable limitations, shown below, based on filing status. Any taxpayer whose federal filing status is single, head of household, or married filing separately is considered a single filer for the purpose of the credit.
| Tax Year | Single Filers | Joint Filers |
|---|---|---|
| 2024 | $75,000 | $85,000 |
Eligible children
In general, the credit is allowed for eligible children that satisfy certain requirements. The child must be under age 6 at the end of the tax year. Additionally, the child generally must meet the requirements for the federal child tax credit, such as the relationship test and the residency test described in IRS Publication 501. However, a child does not need a social security number to qualify for the Colorado child tax credit.
Relationship test
The taxpayer must have a qualifying relationship with the child to claim the credit. The qualifying child may be any of the following:
- the taxpayer’s child, son, daughter, stepchild, or foster child, or a descendant (such as a grandchild) of any of them; or
- the taxpayer’s sibling, brother, sister, half-sibling, half-brother, half-sister, stepsibling, stepbrother, or stepsister, or a descendant (such as a niece or nephew) of any of them.
For additional information, please see the section on the Relationship Test in IRS Publication 501.
Residency test
The child must live with the taxpayer claiming the credit for more than half of the tax year. There are certain exceptions to this requirement for temporary absences, children who were born or died during the year, adopted or foster children, kidnapped children, and children of divorced or separated parents. For additional information, please see the section on the Residency Test in IRS Publication 501.
Other requirements
Certain other requirements apply. For example, special rules apply if a child is an eligible child of more than one person. Please see IRS Publication 501 for additional information.
Credit amounts
The amount of the allowable credit differs by tax year.
Tax years 2022 and 2023
For tax years 2022 and 2023, the credit is based on the federal child tax credit a taxpayer claimed or could have claimed if the child had had a Social Security Number. Please see form DR 0104CN for information about credit calculations for these tax years.
Tax years 2024 and later
For tax years 2024 and later, the credit is a fixed amount for each eligible child based on the taxpayer’s filing status and adjusted gross income. Any taxpayer whose federal filing status is single, head of household, or married filing separately is considered a single filer for the purpose of the credit.
| Adjusted Gross Income | Credit Amount for Each Child |
|---|---|
| $25,000 or less | $1,200 |
| $25,001 to $50,000 | $600 |
| $50,001 to $75,000 | $200 |
| Adjusted Gross Income | Credit Amount for Each Child |
|---|---|
| $35,000 or less | $1,200 |
| $35,001 to $60,000 | $600 |
| $60,001 to $85,000 | $200 |
The income thresholds for determining the credit are adjusted for inflation for tax years 2025 and later.
Part-year residents
The credit for part-year residents is apportioned using the percentage on line 34 of their Colorado Form 104PN or 100%, whichever is less.
Claiming the credit
Taxpayers must file each of the following forms to claim the credit:
- Colorado Individual Income Tax Return (DR 0104);
- Individual Credit Schedule (Form 104CR); and
- Child Tax Credit (DR 0104CN).
If the amount of the credit exceeds the taxpayer’s Colorado income tax liability, the excess credit will be refunded to the taxpayer.
Additional resources
The following is a list of statutes, regulations, forms and guidance pertaining to the child tax credit. This list is not, and is not intended to be, an exhaustive list of authorities that govern the tax treatment of every situation. Individuals and businesses with specific questions should consult their tax advisors.
Statutes and regulations
- § 39-22-129. Child tax credit.
- Rule 39-22-129. Child Tax Credit.
Forms and guidance
- Tax.Colorado.gov
- Colorado Individual Income Tax Guide
- Income Tax Topics: Child and Dependent Care Expenses Credit
- Income Tax Topics: Low-Income Child Care Credit
- Income Tax Topics: Family Affordability Tax Credit
- IRS Publication 501
- Colorado Individual Income Tax Return (DR 0104)
- Individual Credit Schedule (Form 0104CR)
- Child Tax Credit (DR 0104CN)