Qualifying home savings accounts

For tax years 2024 through 2026, individuals may claim a subtraction for any employer contribution made to their qualifying home savings account and included in their federal taxable income. If the individual ends their employment with the employer or uses money from the account for something other than eligible expenses, the individual must add to their federal taxable income the full amount of any employer contributions the employee subtracted on their Colorado return for any prior year. For additional information, please see Department publication Income Tax Topics: Employer Contributions to Home Savings Accounts, available online at Individual Income Tax Guidance Publications .