Colorado Refundable Tax Credit Notice

This guide outlines refundable tax credits available to Colorado residents receiving a W-2. It details federal and state credits for working individuals and families, including the Earned Income Tax Credit (EITC) and Child Tax Credit. Eligibility for the EITC is generally based on income, with specific thresholds for 2023. The guide explains that refundable tax credits can provide refunds even if no taxes are owed. It also provides instructions on claiming these credits through federal and state tax returns. Additionally, resources for free tax filing assistance, such as the IRS's VITA and TCE programs, are mentioned. More information can be found at the Colorado tax website.

  • Oct 21, 2025
  • Knowledge

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Colorado Refundable Tax Credit Notice
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Part of Payroll that is an add-on feature.

What refundable tax credits are available to me as a Colorado resident who received a W-2?

Purpose: This guide will provide the necessary language to employees who receive a wage and tax statement (W-2) in the state of Colorado.

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Federal and state refundable tax credits are available for working Colorado individuals and families

What is a refundable tax credit?

A refundable tax credit puts money back in the pockets of hardworking taxpayers like you. You may be able to claim a credit even if you do not normally file a tax return. If you qualify for a refundable credit, any amount of the credit remaining after reducing the amount of taxes that you may owe to zero is refunded to you.

Earned Income Tax Credit

You may be eligible for refundable tax credits if you earned less than $63,400 in 2023. Generally, eligibility for the Colorado earned income tax credit is based on your eligibility for the federal earned income tax credit. Colorado has expanded eligibility for the Colorado credit for filers who cannot claim the federal credit. You work hard. See if the earned income tax credits can work just as hard for you! Visit Tax.Colorado.gov/ctc-eitc for more information.

Child Tax Credit

You may be eligible to claim these partially refundable credits if you have a social security number or individual taxpayer identification number, have at least one child, and are part of a low- or middle-income family. Visit Tax.Colorado.gov/ctc-eitc for more information on eligibility and to see if you qualify!

How to claim the Earned Income Tax Credit and Child Tax Credit

To claim the Earned Income Tax Credit or the Child Tax Credit, file a federal and state return. Visit Tax.Colorado.gov/ctc-eitc for more details on requirements for and help with filing.

Free income tax filing help

Qualifying taxpayers may be able to file their taxes for free by using the IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. Colorado residents can file their state income taxes on Revenue Online. You can find more information about these resources at Tax.Colorado.gov/ctc-eitc.

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