Calculating the credit

In general, the Colorado EITC a taxpayer may claim is equal to a percentage of the federal EITC the taxpayer claimed and was allowed for the same tax year. The percentages vary by tax year and are shown in the following table.

Credit Percentages Tax Year(s) Credit Percentage 2017-2021 10% 2022 20% 2023 50% 2024 50% 2025 50% 2026 and later 25%

The percentages in the preceding table are also used to calculate the Colorado EITC for taxpayers who cannot claim the federal credit, but who qualify to claim the Colorado EITC using form DR 0104TN.

For tax years 2020 and later, if the taxpayer, their spouse, or any of their dependents did not have an SSN that is valid for employment, and therefore could not claim the federal EITC, the Colorado EITC is equal to a percentage of the federal EITC the taxpayer would have been allowed, but for the fact that the taxpayer, their spouse, or one or more of their dependents do not have an SSN that is valid for employment.

For tax years 2022 and later, if the taxpayer was under age 25 at the end of the tax year and did not have a qualifying child, and therefore could not claim the federal EITC, the Colorado EITC is equal to a percentage of the federal EITC the taxpayer would have been allowed under the minimum age requirements in section 32(n)(1) of the Internal Revenue Code.