DR 0375: Credit for Employer Paid Leave of Absence for Live Organ Donation Affidavit (2024)

Who files this form

Complete DR 0375 and file it with your income tax return if you are claiming the credit for employer-paid leave for live organ donation. The form also covers unused credit carried forward from a prior tax year.

To qualify for a current-year credit, you must:

• Be an employer that deducts and withholds amounts from wages paid to a qualified employee under section 39-22-604(3), C.R.S.
• Have paid an employee during a qualifying leave of absence for organ donation. Costs of temporary replacement help during that leave, if any, also count.
• Pay the employee less than $80,000 in wages during the income tax year.

Qualifying leave cannot exceed ten working days, or the hourly equivalent, per employee. It does not include annual leave or sick days provided by the employer.

What you'll need

Have the following information and records available:

• Your name or business name and SSN or FEIN.
• The total wages paid during qualifying leave and costs of any temporary replacement help during that leave.
• Any unused credit carried forward from a prior year.
• Documentation from the employee’s medical provider, received from the employee, verifying the live organ donation.

Keep the medical documentation with your records. You must provide it to the Department of Revenue if requested during an audit. If you cannot provide it, you are ineligible for the credit.

How to file

Complete DR 0375 and file it with your income tax return. If you claim this credit and file on paper, you must submit the schedule with your return.

1. Enter your taxpayer information.
2. On line 1, total qualifying wages and temporary replacement help costs incurred during the tax year.
3. Multiply line 1 by 0.35 and enter the current-year credit on line 2.
4. Enter any prior-year credit carryforward on line 3.
5. Add lines 2 and 3 on line 4, then transfer that total to the applicable 2024 form:

• DR 0104CR, Individual Credit Schedule: line 55A.
• Schedule G (DR 0105): line 10A.
• DR 106CR, Colorado Partnership and S Corporation Credit Schedule: line 22A.
• DR 0112CR, Credit Schedule for Corporations: line 22A.

By claiming the credit, you declare that the affidavit is true, correct, and complete to the best of your knowledge and belief.

Common mistakes

• Claiming expenses for an employee paid $80,000 or more. The credit is not allowed for that employee’s leave if their wages reach that amount during the income tax year.
• Counting annual leave or sick days. Those days are excluded from the qualifying leave period, which is limited to ten working days or the hourly equivalent per employee.
• Failing to keep medical verification. You are ineligible if you cannot provide the required documentation when the department requests it during an audit.
• Leaving the form incomplete or omitting it from a paper return. The form directs you to fill it out fully and submit it with your income tax return.

Questions people ask

How much is the credit?

The credit is 35% of qualifying expenses incurred during the tax year. These expenses include wages paid during qualifying leave and costs of any temporary replacement help during that leave.

Does the employee’s regular vacation or sick leave qualify?

No. The qualifying leave period does not include annual leave or sick days provided by the employer. Qualifying leave is limited to ten working days, or the hourly equivalent, per employee.

What happens if the credit is more than my tax liability?

You may carry forward the unused credit and apply it against income tax due in each of the next five income tax years.

Do I need proof of the organ donation?

Yes. Keep documentation from the employee’s medical provider, received from the employee, verifying the donation. You must provide it if the Department of Revenue requests it during an audit.

Official sources

• https://tax.colorado.gov/sites/tax/files/documents/DR0375_2024.pdf