Colorado Earned Income Tax Credit

The Colorado Earned Income Tax Credit is a refundable state credit for resident workers, and it is unusually generous, though the rate is changing. It was 50 percent of the federal EITC for tax years 2024 and 2025, and it is being cut to 25 percent for tax year 2026. If you are filing for an earlier year, the higher rate may still apply.

Because it is refundable, you can receive the Colorado EITC as a refund even if you owe no state income tax. For a lower-income worker, that is real cash back, not just a smaller bill.

Colorado opens the credit wider than the federal government does. ITIN filers, and dependents with an ITIN or a Social Security number not valid for employment, may claim the state credit on form DR 0104TN even when they cannot claim the federal EITC. That is a door the federal credit slams shut.

Young workers without children get a look, too. Filers aged 19 to 24 with no qualifying children and a work-eligible Social Security number may qualify if they are not a specified student, and qualified homeless youth and former foster youth aged 18 to 24 may also qualify.

How you claim it depends on your situation. Federal-EITC-eligible filers calculate the Colorado credit on form DR 0104CR. ITIN and under-25 filers use form DR 0104TN and transfer the amount to DR 0104CR, line 9. The Colorado EITC Assistant or the checklist with form DR 0104TN can confirm your eligibility.

You must have been a full-year or part-year Colorado resident to claim it. Free filing help exists through Volunteer Income Tax Assistance sites in season; dial 2-1-1 to find one, and check the separate Colorado Child Tax Credit if you have young children.