Claiming credits from a pass-through entity
Individuals claiming tax credits as a partner or shareholder must obtain from the partnership or S corporation a Colorado form DR 0106K reporting the name and employer identification number (EIN) of the partnership or S corporation and the type and amount of credit. Individuals must submit the DR 0106K with their return. Please visit the E-Filer Attachments web page for more information. The Colorado Department of Revenue verifies the credit claims of partners and shareholders by reviewing the partnership or S corporation's return. The DR 0106K may be submitted through Revenue Online, through tax software or may be included with a paper return.
If the partner or shareholder is a grantor type trust that is disregarded for income tax purposes, any taxable income, deduction, or credit reported on the DR 0106K issued to that partner or shareholder must be included in the grantor's Colorado Individual Income Tax return. Similarly, if the partner or shareholder is a single-member LLC that is disregarded for income tax purposes, any taxable income, deduction, or credit reported on the DR 0106K issued to that partner or shareholder must be included in the LLC owner's Colorado Income Tax return.
The credit is claimed on the Form 0104CR Individual Credit Schedule, Line 12 Electing Pass-Through Entity Owner Tax Credit. For additional information, see the Individual Partner and Shareholder Instructions for 2023 Colorado K-1 (DR 0106).