DR 0347: Child Care Expenses Credit (2024)
Colorado · Colorado DOR · Used for tax years 2024
Colorado Form DR 0347 determines whether you can claim the Child Care Expenses Credit or Low-Income Child Care Expenses tax credit and calculates the credit amount. It records care provider details, qualifying child information, and child care expenses.
Who files this form
Use DR 0347 to determine whether you can claim the Colorado Child Care Expenses Credit or Low-Income Child Care Expenses Credit for 2024. Submit it with your Colorado return if you claim the credit.
You may qualify if you paid someone to care for a dependent under age 13. The eligibility rules include:
- You and/or your spouse must have been a full-year or part-year Colorado resident. Colorado nonresident filers cannot claim the credit.
- The care must be for a qualifying person.
- You, and your spouse if filing jointly, must have earned income during the year.
- The child care expenses must allow you, and your spouse if filing jointly, to work or look for work.
- You cannot claim the credit with a federal filing status of Married Filing Separate.
- You must identify the care provider.
Payments cannot be to your spouse, someone you or your spouse can claim as a dependent, or the parent of your qualifying child under age 13. If you pay your own child, that child must not be your dependent and must be at least 19 by the end of the year.
If your federal adjusted gross income on line 4 is more than $60,000, you do not qualify. The regular credit requires filing federal Form 1040, 1040-SR, 1040-SP, or 1040-NR. If you were not required to file a federal return, you may still qualify for the low-income credit.
What you'll need
The form says to submit DR 0347 with:
- Your complete Colorado Individual Income Tax Return, including DR 0104 and DR 0104CR.
- A copy of your federal income tax return.
- IRS Form 2441.
Have these details available to complete DR 0347:
- Each care provider's name, address, SSN, ITIN or FEIN, and the total amount paid to that provider for the full year.
- Each qualifying child's name, year of birth, SSN or ITIN, and child care expenses.
- Your earned income and, if filing jointly, your spouse's earned income.
- Your federal adjusted gross income, federal tax, and the applicable amounts from Form 2441.
- For part-year residents, the percentage from DR 0104PN, line 34.
If you cannot provide a provider's Social Security or Federal Employer ID number, include proof that you tried to obtain it. If you were not required to file a federal return, you may need to complete a pro-forma federal return to calculate the credit.
How to file
Submit DR 0347 with your complete Colorado income tax return, including DR 0104 and DR 0104CR, plus a copy of your federal return and IRS Form 2441.
The instructions say to file your return electronically if:
- You have more than two care providers.
- A care provider is nonprofit.
- You have more than four qualifying children.
Complete Parts I and II with the provider and child information. Use Part III or Part IV to calculate the applicable credit. Full-year residents carry the credit to DR 0104CR, line 2. Part-year residents must first complete Part V.
The address printed on the form is:
Colorado Department of Revenue
Denver CO 80261-0005
Common mistakes
- Leaving out required information or attachments. The form warns that incomplete information may lead to a denied credit or delayed refund. Submit the required Colorado forms, federal return copy, and IRS Form 2441.
- Using child information that does not match your return. Dependent information on DR 0347 must match DR 0104.
- Omitting a provider's identification number without explanation. If you cannot provide the provider's Social Security or Federal Employer ID number, include proof that you tried to get it.
- Continuing when line 4 exceeds $60,000. The form says to stop because you do not qualify.
- Skipping the part-year adjustment. Part-year residents must complete Part V. If the percentage from DR 0104PN, line 34, exceeds 100%, enter 100%.
- Using inconsistent taxpayer details. Your name and SSN or ITIN on page 2 must match page 1.
Questions people ask
Can I qualify if I was not required to file a federal return?
You may still qualify for the Low-Income Child Care Expenses Credit if your adjusted gross income is $25,000 or less and you meet the eligibility tests. You may need a pro-forma federal return to complete the calculations.
How is the regular Child Care Expenses Credit calculated?
Part III multiplies the federal credit from Form 2441, line 11, by 0.50. Part-year residents must then apply the Part V adjustment.
How is the low-income credit calculated?
Part IV multiplies line 3 by 0.25. Line 3 is the smallest of qualified child care expenses, your earned income, and your spouse's earned income if filing jointly. The credit is limited to $500 for one qualifying child or $1,000 for two or more qualifying children, before any part-year adjustment.
Can part-year Colorado residents claim a credit?
Yes, if they meet the eligibility rules. Part V multiplies the credit from line 9 or line 12 by the percentage from DR 0104PN, line 34, capped at 100%. Enter the result on DR 0104CR, line 2.