To Calculate the Colorado Earned Income Tax Credit (EITC) on DR 0104CR:
Line 2 Enter the amount of earned income calculated for your federal return. In order to calculate the value of your Federal earned income tax credit, you must determine the amount of earned income. You may use the Earned Income Credit Worksheet (EIC Worksheet) and the Earned Income Credit (EIC) Table in the instruction booklet for Federal Form 1040 or use the EITC Assistant Tool online: IRS.gov/Credits-&-Deductions/Individuals/Earned-Income-Tax-Credit/Use-the-EITC-Assistant. It is available in both English and Spanish.
Line 3 The federal EITC you claimed Refer to the credit you entered on the Federal Form 1040.
• Enter the amount of line 27a from Federal Form 1040 on the Colorado Form DR 0104CR line 3.
Table Instructions: If you have a qualifying child and you claimed the EITC on the Federal 1040, you will need to identify that child or those children in this table. Enter each qualifying child’s last name, first name, year of birth and Social Security number. Only check the “Deceased” box for a qualifying child if the child was born and died in 2018 and was not assigned an SSN, you must submit a copy of the child’s birth certificate, death certificate, or hospital records showing a live birth with your return.
Line 4 COEITC Multiply the amount you entered on line 3 by 0.1 to calculate your Colorado EITC.
Line 5 If you are filing as a part-year resident ONLY Multiply the amount you entered on line 4 by the percentage on the DR 0104PN line 34. (If the percentage exceeds 100%, use 100%.) Enter the result on line 5. This is the portion of the Colorado EITC you are allowed.