Colorado Child Care Expenses Tax Credit

Child Care Expenses Tax Credit
DR 0347 2023 Child Care Expenses Tax Credit
*DO=NOT=SEND*

DR 0347 (11/02/23)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0005
Tax.Colorado.gov

Child Care Expenses Credit
Instructions

Use this form to determine if you can claim the Colorado
Child Care Expenses credit or Low-Income Child Care
Expenses tax credit. You may be able to claim the credit
if you pay someone to care for your dependent who is
under age 13. For information about any federal form or
publication listed below, please visit IRS.gov

Eligibility

To be able to claim the Colorado credit for child care
expenses, you must file federal form 1040, 1040SR,
1040SP, or 1040NR and you (and/or your spouse) must
have been a part or full-year resident of Colorado. Colorado
non-resident filers may not claim this credit.
If you were not required to file a federal income tax return,
you may still be eligible for the Low Income Child Care
Expenses credit. However, you may need to complete a
pro-forma federal income tax return in order to complete
the required calculations. To claim the credit, you must
meet all of the following tests:
1.	 The care must be for one or more qualifying
persons.
2.	 You (and your spouse if filing jointly) must have
earned income during the year.
3.	 You must pay child care expenses so you (and
your spouse if filing jointly) can work or look for
work. Qualifying expenses are defined under
Section 21 of the Internal Revenue Code.
4.	 You must make payments for child and
dependent care expenses to someone you (and
your spouse) cannot claim as a dependent. If
you make payments to your child, he or she
cannot be your dependent and must be age 19
or older by the end of the year. You cannot make
payments to:
a.	 Your spouse, or
b.	 The parent of your qualifying person if your
qualifying person is your child and under the
age of 13.
5.	 You cannot claim this credit if your federal filing
status is Married Filing Separate.
6.	 You must identify the care provider on this form.
It is recommended that you fully review IRS Publication 503
for eligibility tests and the definition of qualifying income
and children. All of the information in this form is required
and your credit may be denied if it is incomplete.
Part I – Person or Organization Who Provided the Care
Use this section to list the name, address and Social
Security or Federal Employer ID number of the child care
provider(s) you used. If you are unable to provide the Social
Security or Federal Employer ID number of the child care

provider, you must show that you attempted to obtain the
required information by including such proof with this form.
List the total amount paid for the full year of child care, paid to
each provider. If you have more than two care providers or if
the provider is non-profit, please file your return electronically.
Part II – Qualifying Child Information
For lines 2a – 2d, list each qualifying child, their year of
birth and their Social Security number. You must also list
the amount of child care expenses for each specific child.
Complete lines 2e through 4 as instructed on the form.
If the amount on line 4 is greater than $60,000 do not
continue because you do not qualify for this credit.
If line 4 is $60,000 or less, enter the amount from line 9a of
federal form 2441, Child and Dependent Care Expenses,
on line 5 of this form DR 0347.
For line 6 enter your tax from your federal income tax form
1040, 1040SR, 1040SP, or 1040NR line 18. If you claimed a
Federal Child and Dependent Care Expenses Credit, continue
to Part III. Otherwise, if you could not not claim a Federal Child
and Dependent Care Expenses Credit and your adjusted
gross income is $25,000 or less, skip to Part IV.
If you have more than four qualifying children, please file
your return electronically.
Part III – Child Care Expenses Credit
For line 8 enter the amount from line 11 of federal form 2441.
For line 9 multiply line 8 by the decimal on line 7.
Full–year residents, enter the amount from line 9 on form
DR 0104CR line 2. Part-year residents continue to Part V.
Part IV – Low-Income Child Care Expenses
If you were not required to file a federal income tax return
or were unable to claim the Federal Child and Dependent
Care Expenses Credit and the amount of line 4 is $25,000
or less, use Table A to calculate the credit. Otherwise, go
back to Part III to calculate your credit.
For line 11 multiply line 3 by the decimal on line 10.
For line 12 enter the smaller amount of line 11 or the
appropriate amount from Table A.
Full–year residents, enter the amount from line 12 on form
DR 0104CR line 2. Part-year residents continue to Part V.
Part V – Part Year Resident Limitation
Complete this part only if you were a part-year resident of
Colorado in 2023. For line 13, enter the percentage from
DR 0104PN line 34.
For line 14 multiply the amount from line 9 or line 12 by
the percentage from line 13. Enter this amount on line 2
of DR 0104CR.

*230347==19999*
DR 0347 (11/02/23)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0005
Tax.Colorado.gov
Page 1 of 2

2023 Child Care Expenses Tax Credit
For Tax Year

You MUST submit this form with your complete Colorado Individual Income Tax Return, including forms DR 0104
and DR 0104CR. You must also submit a copy of your federal income tax return and IRS form 2441 with your
Colorado return.
Thoroughly read the instructions to be certain you are eligible for this credit. Be sure to complete all required information.
Failure to do so may result in a denied credit or delayed refund.
Taxpayer Name

SSN or ITIN

Part I – P
 ersons or Organizations Who Provided the Care – You must complete this part.

If you have more than two care providers or if the provider is non-profit, see the instructions.
1(a). Care Provider’s First Name or Business Name Last Name
(b) SSN, ITIN or FEIN
Middle Initial
(c) Address

City

(e) Care Provider’s First Name or Business Name
(g) Address

State

(d) Amount Paid

ZIP

$
Last Name

City

State

Middle Initial

(f) SSN, ITIN or FEIN

ZIP

(h) Amount Paid
$

Part II – Q
 ualifying Child Information – You must complete this part.
If you have more than four qualifying children, see the instructions.
2(a). Child’s First Name
Last Name

Middle Initial

Year of Birth

SSN or ITIN

2(b). Child’s First Name

Qualified expenses you paid in 2023 for the person listed in 2(a)	
Last Name

$
Middle Initial

Year of Birth

SSN or ITIN

Qualified expenses you paid in 2023 for the person listed in 2(b)	

$

DR 0347 (11/02/23)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0005
Page 2 of 2

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Taxpayer Name

SSN or ITIN

2(c). Child’s First Name

Last Name

Middle Initial

Year of Birth

SSN or ITIN

2(d). Child’s First Name

Qualified expenses you paid in 2023 for the person listed in 2(c)	

$

Last Name

Middle Initial

Year of Birth

SSN or ITIN

Qualified expenses you paid in 2023 for the person listed in 2(d)	

$

2(e). Enter the sum of all qualified child care expenses	

$

2(f).Enter your earned income	

$

2(g). If filing a joint return, enter the earned income of the other person	

$

3. Enter the smallest of line 2(e), 2(f) [or 2(g) only if filing a joint return]	
3 $
4. Enter your adjusted gross income from your federal income tax
form 1040, 1040-SR, 1040-SP, or 1040-NR	
4 $
If the amount of line 4 is greater than $60,000 STOP – you do not qualify for this credit.
5. Enter the amount from line 9a of federal form 2441, child and dependent care
expenses. If you did not complete federal form 2441, enter $0.	
5 $
6. Enter your tax from your federal income tax form 1040, 1040-SR, 1040-SP, or
1040-NR line 18	
6 $
If you claimed a credit on federal form 2441, continue to Part III. Otherwise, go to Part IV.

Part III – Child Care Expenses Credit – Complete this part if line 6 is greater than $0 AND line 4 is $60,000 or less
7. Allowable percentage of federal credit.	
8. Enter the amount from line 11 of federal Form 2441, child and dependent care
expenses	
9. M
 ultiply line 8 by the decimal on line 7. Full-year residents, enter this amount on
DR0104CR line 2, Part-year residents, continue to Part V.	

7

0.50

8
9

Part IV – Low-Income Child Care Expenses Credit – Complete this part if line 6 is $0 AND line 4 is $25,000 or less.
10. Allowable percentage of low-income child care expenses.	

10

11. Multiply line 3 by the decimal on line 10	

11

Table A

0 .25

One qualifying child............................... $500
Two or more qualifying children	�����������$1,000
12. Enter the smaller of line 11 or the appropriate amount from Table A. Full-year residents,
enter this amount on DR 0104CR line 2, Part-year residents, continue to Part V.	
12

Part V – Part-Year Resident Limitation
13. Part-year residents ONLY – Enter the percentage from DR 0104PN line 34.
If the percentage exceeds 100%, enter 100%.	
14. Multiply the amount from line 9 or line 12 by the percentage from line 13.
Enter the result on line 2 of DR 0104CR.	

13
14 $

%