Care Worker Tax Credit
Starting in the 2025 tax year, qualifying child care workers and early childhood professionals are eligible for a refundable $1,200 Colorado state income tax credit. This tax credit recognizes your essential role providing care and education for Colorado’s youngest learners and supports your financial stability.
To be eligible, early childhood professionals and child care workers must meet the following requirements:
- Be registered in the Colorado Shines Professional Development Information System (PDIS).
- Have provided child care for at least 720 hours during the tax year (January-December) to children who are five years of age or younger as one of the following:
- An employee or operator of a licensed child care center, preschool, or family child care home with a Colorado Shines rating Level 1-5; or
- An informal family, friend, or neighbor (FFN) child care worker who provides care for children other than their own.
- Have an adjusted gross income less than or equal to $75,000 as a single filer or $100,000 as a joint filer (if you are married and file taxes together).
Qualified direct care workers (in the long-term care sector) are also eligible for the Care Worker Tax Credit. Please review the DR-1217 for more details on eligibility for direct care workers and refer any questions to the Colorado Department of Revenue.
- PDIS is a one-stop online resource for the early childhood workforce. The PDIS is available in English, Spanish, and Arabic and offers a broad range of eLearning courses on child development, health, and safety.
- If you do not already have an account, visit the PDIS to create an account and complete your profile. View the PDIS how-to guide for Creating Your PDIS Account
- Complete the Care Worker Tax Credit Attestation in PDIS (My Account > Profile Settings).
- Login to PDIS and complete the attestation to confirm that you have provided child care for at least 720 hours in the tax year.
- View the PDIS Guide How to Complete the Care Worker Tax Credit Attestation
- View the PDIS Video Walk-Through: Care Worker Tax Credit Attestation
- File Your 2025 Colorado State Income Taxes in Spring 2026.
- To receive the tax credit, you must file a Colorado Individual Income Tax Return, even if you do not owe any taxes.
- You must complete form DR 1217 to claim the Care Worker Tax Credit.
- Free online tax filing services and free in-person tax help are available from Get Ahead Colorado/Hacia Adelante Colorado.
CDEC cannot provide tax advice. If you have additional questions about how to file your tax return, please contact a tax professional. Get help filing your taxes by visiting the Colorado Department of Revenue’s Community Tax Help webpage.
- Care Worker and ECE Tax Credits Outreach Flyer - Educators in Licensed Settings (en español) (عربي)
- Care Worker Tax Credit Outreach Flyer - FFN Providers (en español) (عربي)
- PDIS Guide How to Complete the Care Worker Tax Credit Attestation (en español) (عربي)
- Video Walk-Through: Care Worker Tax Credit Attestation (en español)
- Care Worker Tax Credit: Child Care Worker Overview (en español)
- Care Worker Tax Credit: FAQ (en español)
- FFN Child Care Hours Tracking Template (en español)
Questions
For questions, contact:
PDIS Help Desk
1-844-447-4441 Option 2/Opción 2
(8 a.m.-5 p.m. MST, Monday-Friday)
Staff is available to respond to your questions in English, Spanish, or Arabic.