The Colorado Qualified Care Worker Tax Credit is a refundable state tax credit for eligible child care workers and direct care workers who provided qualifying care services during the tax year. If you qualify, you may be able to claim this credit on your Colorado income tax return using Form DR 1217, Qualified Care Worker Tax Credit.
Because this credit is administered by the Colorado Department of Early Childhood (CDEC) and other participating state agencies, eligible workers must complete an attestation and receive a unique identification number before claiming the credit.
What Is the Colorado Qualified Care Worker Tax Credit?
The Qualified Care Worker Tax Credit is a Colorado refundable credit designed to support certain care workers who provide essential care services to Colorado residents.
The credit applies to two categories of workers:
- Child care workers
- Direct care workers
Who Qualifies as a Child Care Worker?
You may qualify as a child care worker if all of the following are true:
- You were registered in the Colorado Shines Professional Development Information System.
- You provided at least 720 hours of qualifying child care services during the tax year.
- You completed the required attestation process through CDEC.
- You received a six-digit Care Worker Credit identification number (CCW_######).
If you meet these requirements, answer Yes to the child care worker question in the program.
Example
Maria worked in a licensed child care center throughout the year and provided more than 720 hours of qualifying care. She completed the required CDEC attestation and received a CCW identification number. Maria may be eligible to claim the credit on Form DR 1217.
Who Qualifies as a Direct Care Worker?
You may qualify as a direct care worker if all of the following are true:
- You provided hands-on care and services to individuals receiving long-term care in Colorado.
- You possessed the knowledge, training, and skills required to perform these services.
- You provided at least 720 hours of qualifying care during the tax year.
- You are not a Certified Nurse Aide (CNA).
- You completed any required state attestation or certification process.
If you meet these requirements, answer Yes to the direct care worker question in the program.
Example
James works as a direct care provider assisting individuals who receive long-term care services. During the year, he provided more than 720 hours of qualifying care and met all program requirements. James may qualify for the credit.
How Much Is the Credit?
The credit amount is determined by Colorado and may vary based on the tax year and the worker category.
Eligible taxpayers generally receive their credit information through the state-administered attestation process. The amount claimed on Form DR 1217 should match the information provided by the state agency administering the program.
If you are unsure of your credit amount, review your care worker tax credit documentation or visit the Colorado Department of Early Childhood's Care Worker Tax Credit website.
How Do I Enter This in the Program?
Navigation:
State Return > Credits > Qualified Care Worker Credit
Steps:
- Go to the Colorado state return.
- Select Credits.
- Choose Qualified Care Worker Credit.
- Answer the eligibility questions for either:
- Child Care Worker, or
- Direct Care Worker.
- Enter your CCW identification number exactly as provided, if required.
- Continue through the interview screens.
- Review Form DR 1217 for accuracy before filing.
Additional Information
For additional information, visit the Colorado Department of Early Childhood Care Worker Tax Credit program website.