What childcare tax credits are available in Colorado?

In Colorado, you can claim the federal Child and Dependent Care Credit (20–35% of qualifying expenses, up to $3,000 for one child or $6,000 for two or more). The federal credit rate is 20% for most families earning over $43,000. State credit: 50% of federal (up to $500). Colorado's Child Care Expenses Tax Credit is 50% of the federal credit for families earning under $60,000. The credit is refundable — you can get money back even if you owe no state tax.

How much is the federal child care tax credit in 2026?

The federal Child and Dependent Care Credit for 2026 is 20–35% of qualifying expenses. Most families (AGI over $43,000) get 20%. The expense cap is $3,000 for one child or $6,000 for two or more — giving a maximum credit of $600 (one child) or $1,200 (two+ children). Lower-income families earn a higher rate, up to 35% for AGI under $15,000.

Does Colorado have a childcare subsidy program?

Yes. Colorado participates in the federal CCDF (Child Care Development Fund) program. Families of 4 earning up to $7,200/month may qualify for subsidized childcare. Apply through Colorado CCCAP (Child Care Assistance Program). Income limits vary by family size.

Colorado Childcare Tax Credits (2026)

Federal Child and Dependent Care Credit, Colorado state credit, and CCDF subsidy eligibility in one place.

20–35%

Federal credit rate

50% of federal (up to $500)

Colorado state credit

$7,200/mo

CCDF income limit (family of 4)

Federal Child Care Tax Credit Calculator

Rates are the same nationwide — income determines your percentage (20–35%).

Your Adjusted Gross Income (AGI)

Number of Children Under 13

1 child

2 children

3 children

Annual Childcare Expenses

I use a Dependent Care FSA ($5,000/year)

Your Estimated Federal Credit (Form 2441)

Credit Rate

Qualifying Expenses

Estimated Federal Credit

Colorado State Child Care Tax Credit

50% of federal (up to $500)

Refundable

Colorado's Child Care Expenses Tax Credit is 50% of the federal credit for families earning under $60,000. The credit is refundable — you can get money back even if you owe no state tax.

State tax laws change. Verify with the Colorado Department of Revenue before filing.