DR 0347: Child Care Expenses Credit (2025)
Colorado · Colorado DOR · Used for tax years 2025
Colorado Form DR 0347 determines eligibility for and calculates the Child and Dependent Care Expenses Credit or the Low-Income Child Care Expenses credit for 2025. It records care provider information, qualifying children and dependents, care expenses, and the credit calculation,
Who files this form
Use 2025 Form DR 0347 to determine whether you can claim the Colorado Child and Dependent Care Expenses Credit or the Low-Income Child Care Expenses Credit. Submit it with your Colorado return if you claim the credit.
For the Child and Dependent Care Expenses Credit:
- You must file federal Form 1040, 1040-SR, 1040-SP, or 1040-NR.
- You and/or your spouse must have been a full-year or part-year Colorado resident. Nonresident filers cannot claim the credit.
- Your federal adjusted gross income on line 4 must not exceed $60,000.
The eligibility tests also require:
- Care for one or more qualifying persons.
- Earned income for you and, if filing jointly, your spouse.
- Care expenses paid so you and, if filing jointly, your spouse can work or look for work.
- Payments to someone you and your spouse cannot claim as a dependent. If you pay your child, that child must also be at least 19 by year-end.
- No payments to your spouse or to the parent of your qualifying child who is under 13.
- A federal filing status other than Married Filing Separate.
- Identification of the care provider on the form.
If you were not required to file a federal return or could not claim the federal care credit, you may qualify for the Low-Income Child Care Expenses Credit with adjusted gross income of $25,000 or less. Part IV directs you to complete it if line 6, federal tax, is $0 and line 4 is $25,000 or less. Only care expenses for qualifying children under 13 count for that credit.
What you'll need
The form requires you to submit:
- Completed DR 0347 with your complete Colorado Individual Income Tax Return, including DR 0104 and DR 0104CR.
- A copy of your federal income tax return and IRS Form 2441.
Have these details available to complete DR 0347:
- Each care provider’s name, address, tax identification number, and total amount paid for the full year.
- Each qualifying child’s or dependent’s name, birth year, tax identification number, and care expenses paid in 2025.
- Your earned income and, if filing jointly, your spouse’s earned income.
- Federal adjusted gross income, federal tax, and the amounts requested from Form 2441.
- For part-year residents, the percentage from DR 0104PN, line 34.
If you cannot provide a provider’s Social Security number 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 for the calculations.
How to file
- Complete Part I with care provider information and Part II with qualifying child or dependent information and expenses.
- Complete the income and federal tax entries. Stop if line 4 exceeds $60,000.
- Complete Part III or Part IV as directed for the credit you qualify to claim.
- If you were a part-year Colorado resident in 2025, complete Part V. Enter the DR 0104PN line 34 percentage, capped at 100%, and apply it to your credit.
- Transfer the credit to DR 0104CR, line 2. Submit DR 0347 with your complete Colorado return, including DR 0104, DR 0104CR, a copy of your federal return, and IRS Form 2441.
The instructions ask you to file electronically if you have more than two care providers, a nonprofit provider, or more than four qualifying children or dependents.
The department address printed on the form is:
Colorado Department of Revenue
Denver CO 80261-0005
Common mistakes
- Leaving required information blank. The form warns that incomplete information may lead to a denied credit or delayed refund.
- Using dependent information that differs from DR 0104. The entries must match your individual income tax return.
- Including expenses for someone over age 12 in the low-income credit. Those expenses must not be included.
- Continuing when line 4 exceeds $60,000. The form says to stop because you do not qualify.
- Omitting proof when a provider’s identification number is unavailable. Include evidence that you tried to obtain the required number.
- Submitting DR 0347 without the required return and attachments. It must accompany your complete Colorado return, including DR 0104 and DR 0104CR, plus a copy of your federal return and IRS Form 2441.
Questions people ask
Can I qualify if I did not have to file a federal return?
Yes, you may still qualify for the Low-Income Child Care Expenses Credit. You may need to prepare a pro-forma federal return to complete the required calculations.
How is the Child and Dependent Care Expenses Credit calculated?
Part III multiplies the federal credit from Form 2441, line 11, by 0.50. Part-year residents then apply the limitation in Part V.
How much is the Low-Income Child Care Expenses Credit?
Part IV multiplies line 3 by 0.25. The credit is the smaller of that result or $500 for one qualifying child, or $1,000 for two or more qualifying children. Part-year residents then apply Part V.
What if I cannot get my care provider’s identification number?
If you cannot provide the provider’s Social Security number or Federal Employer ID number, include proof with DR 0347 that you tried to obtain it.
Can a part-year Colorado resident claim the credit?
Yes, if otherwise eligible. Complete Part V using the percentage from DR 0104PN, line 34. If that percentage exceeds 100%, enter 100%. Multiply your credit by that percentage and enter the result on DR 0104CR, line 2.