Colorado continues to offer refundable state tax credits that can provide meaningful financial relief for families and care workers.

While one of these credits remains available for the current tax year, it may not be available in future years, making this an important time to take action.

You can use this handy tax calculator to check your eligibility and estimate your tax credits.

Family Affordability Tax Credit (FATC)

The Family Affordability Tax Credit is the same as last year, offering support to Colorado families with children to help offset the rising cost of living. However, this credit depends on state revenue and may not be available next year.

• Available to eligible Colorado families who file a state tax return
• Credit amounts vary based on income and the age of children
• Larger benefits are available for families with younger children
• The credit is refundable, meaning families may receive money back even if they owe little or no state tax
• ITIN filers may qualify, and children do not need a Social Security number

This may be the last opportunity to claim this credit—eligible families are strongly encouraged to file and take advantage of it while it is still available.

Colorado Care Worker Tax Credit

Colorado also offers a refundable tax credit for eligible care workers in child care and long-term care roles.

• Requires at least 720 qualifying work hours during the year
• Eligible workers may receive up to $1,200 (or $2,400 for qualifying joint filers)
• Applies to licensed child care workers, daycare employees, eligible family/friend/neighbor providers, and certain senior care workers
• The credit is refundable

Important Reminder

These credits are not automatic. Eligible individuals for the Care Worker Credit must register  online and file a Colorado state income tax return to receive them.

For official information, forms, and eligibility details, visit the Colorado Department of Revenue at tax.colorado.gov.

Community members who are unsure about eligibility are encouraged to reach out to the ALG office for guidance.