Colorado Child Tax Credit

Colorado has two refundable credits for families with young children, and they stack. The Colorado Child Tax Credit helps families with a child under age six, and it is refundable, so you get it even if you owe no state tax. Starting in tax year 2024 it is no longer based on the federal child tax credit; it stands on its own.

The regular Child Tax Credit is income-tiered. For tax year 2025, it pays $1,200 per child at the lowest income tier, single filers with income of $26,000 or less or joint filers at $36,000 or less, stepping down to $600 and then $200 at higher incomes. To claim the regular credit, you need a child under six and adjusted gross income of $75,000 or less, or $85,000 filing jointly.

The bigger number people hear about is a separate credit. The Family Affordability Tax Credit covers children under 17 and, for tax year 2025, pays up to $3,273 per child under six and up to $2,455 per child aged six to 16 at the lowest income tier. It requires a child under 17 and income of $85,000 or less, or $95,000 filing jointly.

So a family with a toddler may qualify for both credits at once: the regular Child Tax Credit and the Family Affordability Tax Credit. Both are refundable, so a qualifying family can receive them as a refund even with no state tax liability. That is a meaningful amount for a working household.

The rules track the child carefully. The child must pass the IRS relationship, residency, support, and joint-return tests, and you must be the person entitled to claim the child. You also must be a full-year or part-year Colorado resident.

You claim the credit by completing form DR 0104CN and marking the Child Tax Credit box in the Dependents table on form DR 0104. The state's Child Tax Credit and Family Affordability Tax Credit Assistant can tell you if you qualify, and free VITA help is available; dial 2-1-1 to find a site.