Big news for Colorado’s early childhood and child care workers: starting with the 2025 tax year (claimed in April 2026), the state is rolling out a brand-new $1,200 refundable tax credit just for you. That’s right—whether you owe taxes or not, you could still get the full $1,200 in your pocket.
What’s This Credit All About?
The idea is simple: child care workers do essential work, and Colorado wants to give back. If you qualify, this credit will either lower the state taxes you owe or give you a bigger refund check.
Why This Matters
Child care workers are the backbone of early childhood education, and this tax credit is one way Colorado is showing support. It’s a financial boost that makes it a little easier for caregivers to keep doing what they do best—helping kids and families thrive.
Who Can Get It?
To qualify, you’ll need to:
- Work in child care or early childhood education
- Be registered in Colorado Shines’ Professional Development Information System (PDIS).
- Put in at least 720 hours of care for kids ages five and under in 2025. This covers:
- Staff or operators at licensed child care centers, preschools, and family child care homes.
- Family, Friend, and Neighbor (FFN) caregivers are also eligible
- Meet the income limits
- Single filers: $75,000 or less (AGI).
- Married filing jointly: $100,000 or less (AGI).
- (Quick refresher: AGI is your total income minus certain deductions like retirement contributions or student loan interest).
How Do You Claim It?
- Register with PDIS
If you don’t have an account in PDIS, now is the time to register. PDIS also offers free online courses in English, Spanish, and Arabic. - Track Your Hours in 2025
- Licensed providers: make sure your hours are verified in PDIS.
- FFN providers: keep attendance sheets or your own tracking system. Hold onto your records for up to three years—just in case.
- Complete the Attestation
By December 31, 2025, log into PDIS and confirm you’ve hit the 720-hour mark. - File Your Taxes in 2026
Even if you don’t owe taxes, you’ll need to file your Colorado return to claim the credit. If you qualify, the state will send you the full $1,200.
Need Help?
- Free tax prep help is available through Get Ahead Colorado and at Tax Help CO
- For general info, check the Colorado Department of Revenue’s Community Tax Help webpage.
Are you providing childcare to a family member, friend or neighbor? Text ‘FFN’ to 274 448 or visit www.mylantern.org/FFN to sign up for Lantern’s new channel that provides updates on the tax credit AND education, tips and additional resources to support you in the important work of caring for Colorado’s kids.